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RENTING

Tenant or landlord: Who pays which costs in Austria?

Renters in Austria are eligible for some operating costs and certain bills associated with renting a property. Here’s what you need to know.

Published: 12 April 2022 17:07 CEST
Updated: 18 April 2024 13:41 CEST
Tenant or landlord: Who pays which costs in Austria?
What operating costs and bills are tenants eligible for in Austria? Photo by PHILIPPE HUGUEN / AFP

When renting an apartment or a house in Austria it’s important to know your rights when it comes to expenses.

Operating costs, also known as the “second rent”, cover things like insurance, management fees and rubbish removal. Then there are utility bills, such as gas, electricity and internet, all of which can add up to significant monthly outgoings on top of the rent payment.

But when renting a property in Austria, who is responsible for which costs? The tenant or the landlord?

As with most things in life, it depends. Here’s why.

FOR MEMBERS: EXPLAINED: Which documents do you need to rent a flat in Austria?

What are operating costs? 

Operating costs (Betriebskosten) are financial expenses that landlords can pass onto tenants in Austria. It’s to ensure tenants pay their share of the running costs of a property.

However, the type of operating costs that a tenant is liable for will depend on the type of property they live in. Thankfully this is laid out in the Tenancy Act (MRG).

For example, in Vienna if you live in a new building that is subsidised with public funds, or an Altbau (old building built before 1945), then the law specifies which costs can be charged by a landlord.

These include water, garbage collection, electricity for lighting staircases and common areas, insurance for fire and water damage, management fees and running costs of communal facilities.

Whereas in a privately owned building, the rental contract should specify the operating costs that have to be paid by the tenant and which costs are covered by the landlord.

This can be negotiated before signing a contract.

READ MORE: ENERGY COSTS: How to claim financial support in Vienna

How are operating costs calculated?

According to The Tenants Association, operating costs are typically billed monthly at a flat rate. Each tenant pays a share of the expenses for the building in relation to the size of their apartment. 

The monthly amount is calculated by the total expenses of the previous year, plus a maximum increase of 10 per cent. Operating costs can legally be increased once a year.

A landlord must submit the bill for operating costs for the previous calendar year by June 30th. The landlord then has until the end of the year to correct the amount (if necessary). Once this deadline has passed the landlord can no longer make any claims for operating costs for the previous year.

Tenants with concerns about their bill for operating costs should seek advice from professional rental associations like Tenants Assistance for Vienna or The Tenants Association.

Stadt Wien also has a useful operating costs calculator that is free to use. 

READ ALSO: How to navigate the Austrian rental market

Who pays for utilities?

Eligibility for the cost of utilities (gas, electricity, water) will be stated in the rental contract. 

Usually the tenant pays these bills unless the cost of utilities is included in the rent, with the exception of cold water which is covered by the Tenancy Act and can be included in operating costs.

If utilities are not included in the rent, the good news is that you can sign up with a provider of your choice. However, if the utilities are included, then the landlord will typically choose the provider.

Operating costs covered by the Tenancy Act

These are operating costs that can be passed on to the tenant by the landlord in accordance with the law.

  • Cold water costs
  • Insurance for fire, liability and water
  • Operational costs for communal facilities, such as electricity for lifts or maintenance of a shared garden
  • Housekeeping and management fees
  • Taxes, including property tax
  • Pest control
  • Chimney sweeping
  • Rubbish removal
  • Sewer clearing

Operating costs not covered by the Tenancy Act

The following costs are not covered by Austrian law, which means landlords can’t pass on these costs to tenants.

  • Electricity in apartments (this is usually paid for by the tenant unless stated otherwise in the contract)
  • Repair work for burst pipes, damaged chimneys, lighting in staircases or intercoms
  • Connection to the public water supply network
  • Bank charges, interest or telephone fees
  • Clearing rubbish, such as after renovations on the building

Additional costs for tenants

The following are typical monthly costs that must be paid by tenants unless otherwise stated in the rental contract. 

  • Heating and energy costs (e.g. gas and electricity)
  • Hot water
  • Contents insurance (if stated in the rental agreement)
  • Internet
  • Phone 
  • Laundry charges (e.g. if shared facilities)
  • TV fees

Useful links

Mieterhilfe – Tenants Assistance for Vienna

Die Mieter Vereinigung – The Tenants Association

Arbitration Board Vienna – operated by the City of Vienna

ÖMB – Austrian Tenants and Apartment Owners Association

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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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