Read news from:
Austria
SHARE
COPY LINK
For members

PROPERTY

Renting in Austria: How much can estate agents charge in commission?

The size of the estate agent's commission, called 'Provision', comes as a shock to a lot of foreign renters in Austria. There are legal limits on what they can charge, depending on the type of contract you have.

Published: 4 November 2021 08:16 CET
Updated: 14 September 2022 11:27 CEST
Couple and estate agent looking at an apartment
If your estate agent overcharges you for commission, you have a right to claim it back, so it's worth knowing your rights. Photo: Alena Darmel/Pexels

The majority of apartment rental contracts in Austria are managed by estate agents, which means that there is a commission to be paid. This is even the case if you found the apartment using an online service or through word of mouth, as long as an estate agent has been given the job of that apartment rental.

This commission is called Provision or Maklerprovision.

A standard amount is two months’ rent, plus an extra 20 percent in VAT.

For the purposes of the commission, the ‘rent’ means the net rent (Nettomiete) plus any service costs (Betriebskosten) that are included, but not the VAT that makes up part of your gross rent, and not extra costs you pay individually as the tenant, like electricity and gas in most cases. 

If your contract is limited to three years or less however, the maximum an estate agent is allowed to charge in commission is one months’ rent plus VAT. The same is generally true if the estate agent is also the property manager of the landlord; you should only be charged one months’ rent plus VAT (or half a months’ rent if it’s limited to less than three years).

These fees apply whether you’re renting an apartment or a house. If you are renting a single room as a lodger, you can only be charged one months’ rent plus VAT, regardless of the length of contract.

What’s more, if the estate agent owns the apartment and is representing themselves, they should not be charging any commission to the tenant. They’re obliged to disclose any economic or personal relationship between the agent and landlord.

If your contract is extended after you reach the end of the initial time period, whether it’s extended to another set term or changed to an unlimited contract, the estate agent can again take a commission, but this time the limit is half one month’s rent.

A few things to note about the Provision that may not be immediately obvious are that the amount must be listed in the apartment ad, and that this is not a refundable fee like the deposit (Kaution).

Check the Provision amount carefully; these are legal upper limits, so you can’t be charged extra — and if you are, you can claim the money back. Since they are upper limits and not fixed prices, it may even be possible to negotiate a lower fee, especially if it’s an apartment that hasn’t been easy to rent.

You should also make sure that VAT has only been counted once, so that the two months’ rent calculation wasn’t made on the basis of the gross rent.

Lastly and crucially, you should only need to pay the commission after the conclusion of a valid rental agreement, so be very wary of any agents that ask for fees upfront. 

Do you have questions about renting, or another aspect of life in Austria? Email our editorial team at [email protected] with your question and we will do our best to help you.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

SHOW COMMENTS