Tenants Overpaying Rent Despite Price Brake, Chamber of Labour Says

Tenants in Austria are frequently overpaying rent, even with a rent price brake in place, according to the Chamber of Labour (AK). The AK described the situation as "terrible things" happening in the housing market, stating that unfairness is an understatement.

Thomas Ritt, head of the AK's relevant department, explained that contract terminations are the "core of this rent gouging." He argued that these terminations make tenants "insecure and easily blackmailed." In 2025 alone, overpayments amounted to approximately 168 million euros nationwide, the AK reported.

The rent price brake, introduced two years ago, was intended to protect and financially relieve tenants. While it applies to existing rental agreements, rents still rose by 4.8 percent in 2025, primarily due to new leases, Ritt said. Besides new constructions, fixed-term rental contracts are particularly problematic because they are repeatedly re-let. These fixed terms enable "rent gouging," as many tenants, fearing loss of housing, are hesitant to legally challenge unlawfully high rents, he emphasized.

Lukas Tockner from the AK's Municipal Policy and Housing department criticized the increasing number of fixed-term leases, calling it an "epidemic." He stated that every second rental contract in the private sector is fixed-term, leaving "over 400,000 households in Austria living with insecurity." More than three-quarters of new rental contracts, including renewals, are now issued on a fixed-term basis annually, a trend he expects to continue.

The AK highlighted that older buildings are particularly affected by this "rent gouging." While the law generally requires a 25 percent reduction for fixed-term leases in older buildings, calculations based on micro-census data and legal cases show a discrepancy between permissible and paid rents. On average, an affected household pays 1,600 euros too much per year.

Ritt criticized that landlords demanding unlawfully high rents face no negative consequences and often become "repeat offenders." He stated, "Rent gouging is unpunished. I can do it constantly, occasionally get caught, return my loot, and continue." He called this situation an "invitation to break the law."