Inflation: The price spiral continues to turn

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The standard and category rents were already adjusted by law in 2022. Another recommended rent increase is imminent in April as part of the inflation adjustment. Although the Ministry of Justice publishes the upcoming adjustment only in March, the Chamber of Labor has already calculated how much the rents will increase this time. “From April 1, the standard rents will increase by 8.6 percent. For a tenant or a tenant are the average additional costs of about 490 euros a year,” says Thomas Ritt, expert of the Chamber of Labor. The reason rents are rising so sharply is high inflation because rents are linked by law to the consumer price index (CPI). The amount of the respective adjustment results from the annual inflation rate of the previous year.

The increase will affect about 300,000 households across Austria, mainly residents of old private apartments with rental contracts from March 1994 and tenants of municipal flats. Existing leases can be raised starting in May, and new leases as early as April. For landlords to be allowed to impose higher rents on their tenants, a threshold must be specified in the lease stating when the rent may be adjusted for inflation. “Whenever these thresholds are exceeded, a rent increase may be implemented,” explains Elke Hanel-Torsch of the tenants’ association.

Guideline value plus surcharges and discounts
The guideline values vary depending on the federal state. The guideline rent is valid in the respective federal state, plus additions and deductions. Standard rents are adjusted for inflation every two years. However, because the increase for 2021 has been postponed to 2022 due to corona, the subsequent increase is already imminent this year.

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