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COST OF LIVING

What new subsidy payment is Vienna offering for renters?

A new payment bonus for renters has been approved by the Vienna City Council, totalling €55 million - here's who is entitled to it and how much you can get.

Published: 31 May 2023 13:38 CEST
What new subsidy payment is Vienna offering for renters?

Austrian rents are about to become more expensive (again), as The Local reported. Another round of rent increases is due in July, with the so-called “category rents” expected to rise by approximately 5.5 per cent. 

This would mark the fourth increase within 15 months and significantly burden about 135,000 households affected by the changes. In addition, other homes will also see a cascading effect leading to higher operating costs for nearly all renters in Austria. 

The Chamber of Labour (AK), the Austrian Federation of Trade Unions (ÖGB), and the tenants’ association are expressing alarm and renewing their call to implement rent control measures, as reported.

READ ALSO: What will become more expensive in Austria in June?

New one-off payment for renters

Because of the increases, the Austrian capital Vienna has approved a new “Gemeindebau-Bonus“, which should provide relief for hundreds of thousands of Viennese currently living in the social apartments (Gemeindewohnungen). 

The €55 million payment is set to come to renters in September 2023, according to a decision by the Vienna City Council on Tuesday, May 30th. 

“Community building in Vienna has always stood for social cohesion. Through the multi-stage Gemeindebau-Bonus, the City of Vienna and Wiener Wohnen show what it means to look and act socially accurately,” said Housing Councillor and Deputy Mayor Katrin Gaál (SPÖ) in a press statement.

“Especially in the current difficult times, it is particularly important that people receive tangible support and do not have to fear losing their apartment,” she added.

According to the Viennese authorities, renters in the social apartments will receive half a net monthly rent in the first step starting at the beginning of September.

READ ALSO: What is it like to rent a home in Austria?

How will the payments work?

The new “multi-stage Gemeindebau-Bonus” comprises three measures that specifically benefit the residents of Wiener Wohnen’s municipal housing complexes, according to the City of Vienna.

At the beginning of September 2023, all tenants of a municipal apartment will receive a special payment in the form of a credit for half a net monthly rent.

At the end of the calendar year 2023, those tenants whose rent was increased in the years 2022-2023 will receive an additional credit in the form of a payment bonus. The amount of credit is based on the extent of the increases that took place in the period. 

READ ALSO: What cost-of-living payments could residents in Austria receive in June?

Additionally, the government wants to facilitate the agreement of installment payments for tenants who “fall behind financially” to pay their outstanding rental debts.

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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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