Rent crisis: Government fights for a solution to invalid value protection!

Rent crisis: Government fights for a solution to invalid value protection!

The most recent ruling by the Constitutional Court (VfGH) on value protection clauses in rental agreements has caused considerable nervousness in the real estate industry. The federal government is under pressure to find a quick solution that takes into account the interests of both tenants and landlords. Vice Chancellor Andreas Babler and Justice Minister Anna Sporrer are actively in discussions with the coalition partners ÖVP and NEOS in order to reach an agreement by autumn. First and foremost, this is about legal clarity regarding the controversial clauses, which have been repeatedly classified as problematic by courts in the past, including the Supreme Court (OGH).

The ruling, which has now been put on the agenda, declares certain value protection clauses to be invalid, especially if no reference is made to a so-called two-month blocking period. This confirms a decision made by the OGH two years ago. According to oe24, some real estate companies have also resisted a provision of the Consumer Protection Act (KSchG) that prohibits such clauses in rental agreements. However, the Constitutional Court rejected these applications as unfounded.

Legal challenges and potential repayments

One affected company, the landlord of an apartment in Vienna, was forced to repay an excessive rent because the tenant successfully argued that an ineffective value protection clause was responsible for the high payment. This development raises questions. According to the Chamber of Labor, affected tenants will not automatically receive repayments; Each case must be legally clarified individually. The tenants' association expects an increase in inquiries from tenants affected by this problem.

The managing director of the ÖVI, Anton Holzapfel, emphasizes the need for a quick legal solution to clarify numerous legal questions. The real estate industry sees the risk that many landlords may have to pay back claims dating back many years. Experts also warn of possible economic consequences such as frozen rents and devalued property valuations. Since considerations are already underway to limit claims for repayment to a maximum period of five years, the industry is feeling additional pressure.

Outlook for legal changes

While the government is aware of the problem, concrete solutions are not yet outlined in the government program. In a planned budget proposal, a rent cap could also be decided by autumn. Minister Korinna Schumann is planning negotiations in the summer to reach an agreement. The NEOS and the FPÖ have also emphasized how important legal certainty is for the real estate industry and are calling for rapid new regulations.

The need for clarification by the OGH in individual proceedings is demanded by various actors in housing law. The legally guaranteed provision that value protection clauses must be negotiated individually with tenants also brings additional challenges for landlords, as it calls into question automaticity in contractual relationships. This KSchG could serve as a decisive factor in future rental agreements.

The development surrounding the value protection clauses remains a central topic in the political and legal debate in Austria, while the affected actors continue to hope for a clear and fair regulation.