The category rent and thus also the operating costs increase automatically as soon as inflation exceeds the next 5 percent threshold since the last adjustment. The interest applies to contracts concluded before March 1, 1994. Since then, the guidelines have applied. These will not be increased again this year.
The basic rent in the category apartments is now increasing in category A from 3.80 to 4.01 euros per square meter (before April 1, 2022 it was last 3.60 euros). Category B is increased from 2.85 euros to 3.01 euros (previously 2.70 euros), C and D usable from 1.90 to 2.00 (previously: 1.80) and D from 0.95 to EUR 1.00 (previously EUR 0.90).
250,000 tenants affected
According to the tenants’ association, around 250,000 tenants are directly affected by this increase. About 2 million people would be asked to pay via the detour of the operating costs, because the category amounts of category A would be used to calculate the administrative costs.
In April, both benchmark rents (plus 5.85 percent) and category rents (plus 5.47 percent) rose. The former can be raised every two years – as of April 1st – by the average inflation during this period. An increase in current contracts can only be effective if it contains a value retention clause, otherwise it only applies to new contracts.
Next increase in April 2023
Because of the pandemic, the guide value increase due in 2021 was only made this year as an exception. But next year it will be raised again – to account for this year’s sharply rising inflation. After that, the normal two-year cycle should apply again. The next increase is scheduled for April 1, 2023.
In category rents, too, there was a corona-related postponement of the routine 5 percent threshold increase and therefore the current double increase within a few months. Although the change in the 2000 consumer price index had already exceeded the threshold of 5 percent with the index number announced in February 2021 for December 2020, the valorization of category rents was postponed to April 1, 2022 and March 31 with the Pandemic Consequences Relief Act (MPFLG). 2022 announced in the Federal Law Gazette.
Guidelines differ depending on the federal state
The guideline value law regulates rental agreements in old buildings that were concluded after March 1, 1994, but also applies to Viennese council flats with rental contracts from 2004. According to estimates, around 500,000 old and council flats are affected. In addition to the guide values, there are surcharges or deductions such as equipment features and location. The benchmarks vary from state to state.
Before 1994, apartments in old buildings were divided into categories A (very good) to D (toilet in the hallway) depending on their furnishings, in order to adjust the rents accordingly on the basis of the Tenancy Act (MRG). The category rents apply to old building rental contracts that were concluded between January 1, 1982 and February 28, 1994.
Source: Nachrichten
