Association for reform

Landlords should pay property tax and co. in future

The tenants' association wants a reform of operating costs.

(Bild: APA/Barbara Gindl)

In view of exploding rents, the tenants' association is in favor of a reform of operating costs. If the lobby group has its way, items such as insurance, property tax and management fees should no longer be borne by tenants in future, but by landlords. With a corresponding amendment, tenants of a 70-square-metre apartment in the private sector would save a good 60 euros a month, the association calculated.

At a press conference on Thursday, Elke Hanel-Torsch, Chairwoman of the Vienna Tenants' Association, described operating costs as the "second rent", which accounts for around a quarter of total rental costs. In this respect, they are a major lever for cushioning the recent sharp rise in rents due to inflation and thus additional burdens for tenants.

"Costs are not caused by tenants"
The approach should be to address issues "that are not caused by the tenants" - i.e. not the costs for waste or wastewater, but for example the premiums for insurance policies such as fire insurance. This protects the landlord's property.

"This is asset protection. The owner protects their assets, but others have to pay for it. That is anything but fair," says Hanel-Torsch. For the same reason, we also reject the charging of property tax as part of the tenants' utility bills. It is "a tax on land, it is a tax on property".

Paying without a say
Thirdly, the tenants' association considers the fact that tenants are charged the management fee, i.e. the costs for property management, to be "absurd" and therefore in need of reform. "The tenants have no say at all in the appointment of the property management company, but have to pay for it," criticizes Hanel-Torsch. In addition, the property management company is appointed to represent the interests of the landlords, not those of the tenants. It is therefore unacceptable that tenants have to shoulder the cost burden.

"Apartments must become affordable again"
Georg Niedermühlbichler, President of the Tenants' Association, considers the current list of operating costs to be obsolete. It dates back to a time when rents were much cheaper than they are today and landlords could count on significantly lower income. "With this reform, we want to help make housing affordable again," he emphasized.

Niedermühlbichler was not sparing in his criticism of the turquoise-green government, which had failed to introduce a "real" reform with its rent cap. "Unfortunately, the federal government has not listened to our proposals." Such a reform remains a concern of the tenants' association, which would like to see rent increases suspended until 2025 and subsequently limited to two percent per year. The tenants' association is also looking to standardize the Tenancy Act, which currently does not offer equal protection for all tenants.