Our answer regularly Legal experts Inquiries from readers on the topics of housing, property, rent and neighborhood. It involves sensitive topics, from operating cost accounting to rental agreements, from neighborhood conflicts to renovation measures.
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This time we received a question about the location surcharge and existing rental agreements.
QUESTION: I am a tenant in a Wilhelminian style house with a permanent contract and pay category rent. There is a new homeowner who has entered into the existing rental agreements. He wants to add more floors to the house and charge a location surcharge, even for existing rental agreements. Is he allowed to do that?
This time, lawyer Julia Fritz from PHH Rechtsanwälte provided information on the home phone. She has the following legal answer:
ANSWER: As a tenant in one Wilhelminian style house With an open-ended rental agreement and category rent, you are comprehensively protected by the Tenancy Law. A new owner enters into the existing rental agreements and assumes all associated rights and obligations.
The owner generally has the right to make structural changes such as: Increase provided that the legal provisions are complied with. It is important that the measures do not affect the tenancy rights of the existing tenants.
Julia Fritz is a lawyer at PHH Rechtsanwälte
Should they Construction work lead to impairments, you may be entitled to Rent reduction or compensation. A location surcharge is a surcharge on the rent that can be charged for apartments in above-average locations. However, in so-called Wilhelminian style districts, i.e. areas with predominantly buildings from the period between 1870 and 1917, a location surcharge is generally not permitted.
This was confirmed by the OGH. Since in this specific case there is an open-ended rental agreement with a category rent, the old rent law applies. A subsequent introduction of a location surcharge in existing contracts is not easily possible. The landlord would have to apply for a court adjustment of the rent and prove that the requirements for a location surcharge are met. This is particularly difficult in Wilhelminian style districts.
Might be facing an unjustified rent increase, it’s crucial to seek legal advice. Document everything, communicate with your landlord, and be aware of your rights to challenge any unreasonable surcharges.
World-Today-News: Good morning, welcome to World-Today-News. Our first guest today is Julia Fritz, a lawyer from PHH Rechtsanwälte, and our second guest is Emily, a tenant living in a historic Wilhelminian style house. Thank you both for joining us today. Let’s start with an overview of the topic. Julia, can you tell us about the legal aspects of location surcharges in existing rental agreements?
Julia Fritz: Of course. As a lawyer, I can say that landlords generally have the right to increase rents due to structural changes or improvements made to the property. However, these changes must not affect the tenancy rights of existing tenants. In the case of adding extra floors to an existing building, the owner must comply with legal provisions and may introduce a location surcharge if the property is in an above-average location. However, in historic Wilhelminian style districts, where predominantly buildings from 1870 to 1917 are present, a location surcharge is not usually permitted. The landlord would have to apply for a court-ordered rent adjustment and prove that specific criteria are met to justify the surcharge. This can be challenging in these areas.
World-Today-News: Understood. Now, Emily, can you share your experience as a tenant living in a Wilhelminian style house with an open-ended contract and category rent?
Emily: Sure, I live in one of the iconic buildings in this historic district, and it’s beautiful. However, when the new owner took over the property, they informed me of their intention to add floors and charge a location surcharge. I was worried about the impact on my tenancy rights and if I would have to pay more rent.
World-Today-News: Julia, what advice would you give to Emily and other tenants facing similar situations?
Julia Fritz: As a tenant, you are well-protected under Austrian tenancy law. The new owner takes over all rights and obligations from the previous contract. Still, it’s important to note that any changes to the property could potentially affect your rights as a tenant. If the landlord plans structural changes that significantly impact your living conditions or if you feel you
