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Rent levels between Mickey Mouse and luxury: Reform overdue
🇦🇹 Austria /Elections & Politics

Rent levels between Mickey Mouse and luxury: Reform overdue

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

Opinion Named sources Context piece
  • A reform of Vienna's rent control laws is overdue, despite the coalition government's recent legislative efforts.
  • The current system differentiates between old and new buildings, leading to disparities in rent prices.
  • The author proposes adjustments to existing rent categories and the introduction of upper limits to ensure affordability and fairness.

Vienna's rent control system, characterized by a stark divide between historically low rents in older buildings and high prices in newer ones, is in urgent need of reform, according to legal expert Dr. Martin Prohaska.

It is not possible to maintain an older house in Vienna with the D-category rent (unusable €1.13 or usable €2.25 per m²), you can call it Mickymaus rent. Even with category rent A of €4.51 per m², it is difficult. Therefore, an appropriate increase should be enabled.

— Dr. Martin ProhaskaProhaska illustrates the inadequacy of current rent levels for maintaining older properties.

Prohaska argues that the current differentiation, which he terms "Mickymaus rent" for older properties, is unjustifiable. He suggests that lawmakers should intervene cautiously in existing contracts, similar to how business space rents have been regulated, to create more affordable housing options, particularly for young people.

The proposal includes abolishing or significantly increasing the low category rents and establishing upper limits for guideline rents. Prohaska points to existing mechanisms within the Rent Law Act (MRG), such as the gradual increase of business space rents over 15 years, as a model for adjusting older rents over a similar period to reach guideline levels.

There are still, here and there, the 'Hofratswitwe' or other entitled persons who live after the tenant's death in 150 m² or more for a ridiculously low category rent. On the other hand, young families live in studio apartments and pay €15 or €20 per m², which is a multiple.

— Dr. Martin ProhaskaThe author highlights the disparity in housing costs faced by different demographics.

He also advocates for considering factors like apartment size and the number of residents. This would address situations where long-term tenants occupy large, inexpensive apartments while young families struggle in small units at much higher per-square-meter rates. Prohaska suggests introducing a "Luxury" category (L) for high-end rentals, with penalties for exceeding permissible rent levels by a significant margin, to curb extreme price gouging and promote greater social balance in housing costs.

Penalties could be imposed if the permissible rent is exceeded by 50% or 100%.

— Dr. Martin ProhaskaProhaska suggests punitive measures against excessive rent increases.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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