Relocating to Austria is an exciting adventure, but finding the right place to live can be a huge challenge. The Austrian rental market has changed significantly in recent years, and understanding how it works is key to making a smooth transition.
The Shifting Rental Landscape: What You Need to Know
Rental prices in Austria, particularly in Vienna, have been steadily increasing, with an 11% rise in 2024 alone. Unfortunately, a lot of rental market data available to the public can be misleading, especially since much of it includes subsidised or municipal housing. These affordable options are typically unavailable to newcomers, meaning you will most likely be looking at the private rental market, which has become more expensive and complicated.
A significant change in the rental process is the Bestellerprinzip (we wrote a blog post on this – you can read it here), more and more landlords are choosing to bypass the service of real estate agents and are listing their properties directly on online platforms like Willhaben and ImmoScout24. While there are some financial benefits for tenants, there are several hidden challenges to consider when renting directly from a landlord.
Landlord Direct: New Considerations
With more landlords managing their own rentals, there may be fewer safeguards to ensure the process is handled correctly. Here are some potential ways this could affect your rental experience:
- Unrealistic rental prices: Without the objectivity of a professional, landlords may set rental prices based on personal opinions or inflated expectations, leading to properties being priced above their actual market value.
- Legal issues: Landlords may not be familiar with the legal requirements in Austrian rental laws, which could lead to problems with your contract or rights.
- Inconsistent service standards: With no governing body regulating the private landlord, nor professional standards being guaranteed, as a potential tenant, you might encounter poorly drafted contracts or poorly maintained properties.
Common Mistakes to Avoid When Renting in Austria
As you begin your rental search, there are a few things to keep in mind to avoid common pitfalls:
- Subsidised and municipal housing are unlikely to be options: Online platforms include subsidised and municipal housing options, which may not be available to international residents.
- Kitchens are often not included: In Austria, it is common for rental properties to come without kitchens, which can be an unexpected additional cost.
- Renovation work may be necessary: Many older properties may require renovation to meet your expectations, especially in terms of the kitchen and bathroom.
- Furnished apartments are scarce: Only about 15% of the rental market offers furnished apartments.
Key Price Drivers to Keep in Mind
As well as size and location, there are several other key factors that influence rental prices in Austria:
- Building type: Newer buildings (Neubau) generally command higher rent compared to older properties (Altbau, pre-1945), especially if they come with modern amenities and energy-efficient features.
- Renovation quality: Apartments with newly renovated kitchens and bathrooms tend to be priced higher than those with older features or requiring renovation.
- Outdoor space: Properties with balconies, terraces or gardens are often priced at a premium.
- Furnished vs. Unfurnished: Furnished apartments make up only about 15% of the market and tend to be 20-30% more expensive than unfurnished ones, as they come with additional costs for furniture and maintenance.
Overcoming the Challenges: A Tenant-Focused Approach
While these challenges can seem daunting, understanding the landscape is the first step to overcoming them. Research rental trends in your preferred location, consider short-term housing options to give yourself time, and be aware of potential pitfalls - like unexpected costs for renovations or missing kitchen fittings.
For those who find navigating these complexities overwhelming, working with a relocation agency can make a significant difference. As relocation experts, we work solely on your behalf. We provide:
- Market expertise: We keep up with rental trends, pricing and availability, across multiple platforms, to ensure you have the most up-to-date information.
- Objective advice: We offer unbiased and impartial guidance, to ensure your best interests are met, helping you avoid overpriced or unsuitable properties.
- Legal support: We understand Austrian rental laws and can ensure your contract is fair and legally sound.
- Hands-on assistance: From property searches to negotiating contracts, we provide full support every step of the way.
Final Thoughts
The rental market in Austria is evolving, and while challenges exist, being well-informed can help you navigate these changes more smoothly. Whether you choose to go it alone or with the support of a relocation agency, understanding these dynamics is crucial for making the best decisions for your new life in Austria.
