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PROPERTY

How can I find an apartment in Austria without a ‘Provision’?

In Austria, the estate agents' fee or commission on rental apartments can be up to two months' rate plus VAT, a non-refundable cost which you can avoid if you know how.

Published: 5 November 2021 08:12 CET
Updated: 29 October 2023 08:14 CET
Woman in empty apartment
Avoiding the upfront cost of the agents' commission or Provision is appealing, but watch out for these pitfalls. Photo: Kari Shea/Unsplash

The Provision or estate agents’ commission usually costs between one and two months’ rent plus 20 percent VAT, depending on the type of place you’re renting and the length of the contract.

This is a non-refundable, one-off fee, which is especially frustrating if you don’t know whether you’ll be staying in an apartment long-term. For example, if your apartment costs €600 for the net rent and you stay there for only one year, a Provision of two months’ rent means you are effectively paying €100 extra per month.

Renting in Austria:

That might be worth it if it means living in your dream property, or if you prefer the security of going through an agent. If you have other specific criteria that you don’t want to compromise on, like living in a specific area or any hard-to-find features, it may be best not to narrow your options further.

But if you want to try to find an apartment without this cost, there are a few options to try.

Most of the standard apartment rental platforms, such as Willhaben, ImmobilienScout24, and Der Standard’s rental section, have options to search for “provisionsfrei” apartments — those rented privately without an agent and therefore free of commission. But be prepared for your search results to reduce drastically!

Sometimes newly built apartment blocks are a good place to start, because it may be the case that the building owner pays the agent commission, making them provisionsfrei to you as the tenant. You’ll usually find these on the usual search portals too.

There are a few other search portals dedicated specifically to finding apartments without going through an agent, which include Wohnheim Wien (run by the Jewish Community of Vienna), KeinMakler, PrivatImmobilien, MietGuru, and FlatBee. Note: The Local has no affiliation with any of the sites listed in this article.

And word of mouth can be especially helpful if your priority is avoiding agent fees. You never know who might know someone who is leaving your city or their apartment and is looking for someone to take over the contract.

Other options for provisionsfreie apartments include renting a cooperative apartment (Genossenschaftswohnung), which means paying a large upfront fee to become a member of the cooperative in return for no commission and lower monthly rents, or looking into other kinds of rentals altogether such as co-living spaces or serviced apartments. But whether these are suitable really depends what your priorities are. It’s almost certainly not worth choosing a co-operative, co-living or serviced apartment just to avoid the Provision; it’s much more important that you choose what’s right for your financial and living situation.

So what do you need to watch out for when searching for a provisionsfrei apartment?

These apartments are very popular, so you might need to make more of an effort in your search than you otherwise would, for example by browsing the rental sites more regularly and contacting landlords quickly when you see something you like. Make sure to have documents like your proof of income ready to show them.

Landlords know that provisionsfrei apartments are appealing, so you should also check that they aren’t ramping up the cost elsewhere. Austria has regulations on how much can be charged for rent, so you should do your research if the price seems high.

If you’re looking at furnished places, check if there’s an Ablöse (fee for taking on the furniture) and whether the price seems reasonable for the quality of furnishing — otherwise you’re simply swapping one high upfront cost for another.

It’s always important to do due diligence when renting, for example checking out the condition of the apartment at the viewing and making sure the costs are all in line with what’s legally allowed and the standard prices for that area, but this is especially important when renting privately.

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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. 

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