Short-term rentals: Viennese providers fight back

As reported, new, stricter rules for short-term rentals of apartments have been in force in the federal capital since the beginning of July: Anyone who advertises on platforms such as Airbnb can only do so for a maximum of 90 days in a calendar year. A total rental period that goes beyond this requires approval. A group of providers is now mobilizing against the amendment. It endangers livelihoods and is unlikely to lead to more apartments coming onto the regular market.

Until now, there were only limits for areas that were designated as residential zones. This regulation was passed in 2018 and has been in force since then. Properties outside of these zones are now also affected by restrictions. The argument is that Vienna wants to use the new regulation to prevent housing from being permanently withdrawn from the market.

Exceptions are possible

Short-term rentals of apartments that last for more than 90 days in a calendar year should generally only be permitted in exceptional cases. However, temporary permits can be issued for this outside of residential zones. However, this requires the consent of all apartment owners. Certain equipment, such as smoke detectors, is also required.

Affected owners are not happy with the new regulations. One of them is Günther Hegenbart. He owns apartments in a building in the 1st district that is several centuries old, four of which are rented out to tourists. The house is a historic building owned by the family, but he himself had to buy the apartments in question. They are rented out to cover the loans for the purchase of the properties, as he assures: “I am not a major investor.” The apartments were bought for the children, for example. Some of the guests, in turn, are regulars who have been coming back for years. The city is interfering in the business model with the regulations. Now he has taken a first step. He is only renting out the accommodation for a period of 29 days or more. This means that this no longer falls under short-term rental. Renting the apartments out for the long term is out of the question, he stated. Because the guideline rent to be received is far too low to cover the costs, he explained. In the worst case, he would have to consider selling.

For Katharina Stefanovic, who offers two apartments, this is not an option for the same reasons. She is also worried about so-called rent nomads: it is difficult to get rid of them.

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Negative example New York

The apartment initiative does not believe that more properties will now come onto the market for regular rental. This has been shown in New York, for example. There, particularly strict rules (among other things, the presence of the landlord is required, note) have not led to rents becoming generally more affordable. “We are creating affordable housing for families, namely for those who cannot afford a hotel,” says Stefanovic.

Another affected person calculates that the number of platform apartments in Vienna is manageable – comparable in size to two or three large hotels, he estimates. However, the city is not afraid to bring new operators to Vienna.

Old buildings such as that of the Chamber of Commerce on Heumarkt have become luxury hotels and not apartments. But no one criticizes that. In general, the hotel industry is one of the beneficiaries of the strict rules, they are convinced. At the same time, it is pointed out that according to Eurostat figures, around two million overnight stays were booked in private apartments in Vienna in 2022. These tourists could now be lost, they warn.

The fact that there have been relatively few applications for approval recently is no surprise to the providers. “It’s far too bureaucratic,” said Hegenbart. The fact that signatures must now be obtained from all other owners, even if renting out a building has been common and tolerated for years, also annoys those affected.