On 1 July 2023, the so-called Bestellerprinzip (client-pays principle) comes into force in Austria for residential rentals. It means that whoever hires a real estate agent pays the agent’s fee, whether that is the landlord or the prospective tenant. In this article, we explain what the Bestellerprinzip means for tenants, landlords and real estate agents.
What Is the Bestellerprinzip?
The Bestellerprinzip is part of an amendment to the Austrian Brokers Act (Maklergesetz). It applies to the rental of apartments and means that the agent’s fee is paid by the party who commissioned the agent first. A similar rule has applied in Germany since 2015.
In the past, the agent’s fee was often shared by both sides. In practice, however, the agent was usually hired by the landlord and the fee was passed on to the tenant. From July 2023, tenants only pay an agent’s fee if they actively hire an agent themselves and agree on a fee. In addition, tenants cannot be charged if the agent has a close economic relationship with the landlord or the property manager.
The Bestellerprinzip does not apply to property purchases or commercial leases.
What It Means for Tenants
For tenants, the Bestellerprinzip means financial relief when looking for an apartment, as in most cases they no longer pay an agent’s fee. However, there are concerns that fewer apartments will be advertised online, as more properties may be rented out privately. In addition, agents often explain to prospective tenants what their rights and obligations are. In future, they will only do this if the tenant is their client.
What It Means for Landlords
At first glance, the new rule is a disadvantage for landlords, as they are usually the agent’s first client and therefore have to pay the fee. One alternative is to rent out properties themselves, but this means more risk and considerably more effort. Real estate agents do much more than conduct viewings: they advertise the property, draw up rental agreements and pre-select prospective tenants. Landlords would have to handle all of this themselves, which takes a lot of time.
What It Means for Real Estate Agents
At first, little changes for real estate agents. As before, they act in the interest of their client. However, it will be more important than ever for them to communicate their services clearly and transparently, so that their clients can see the value they provide.
The FINcredible Rental Check and the Bestellerprinzip
With the Bestellerprinzip, landlords and agents bear more of the cost of finding a tenant, so an efficient selection process matters more than ever. The FINcredible Rental Check offers a simple and fast way to assess the creditworthiness of prospective tenants. With the tenant’s consent, it analyses income and verifies identity based on up-to-date bank data, and calculates the rent-to-income ratio within minutes. The results are available as a digital certificate.
Landlords and agents can check prospective tenants quickly and pre-select them before the viewing. This gives them the information they need to make a well-founded decision, while reducing the number of viewings and saving time and costs.
Conclusion
The Bestellerprinzip is a major change for the Austrian real estate sector. Tenants benefit financially, while landlords now usually bear the agent’s fee. Real estate agents need to adapt to new market conditions and communicate the value of their services more clearly to stand out.
Digital processes make tenant selection simpler, faster and more precise. With the FINcredible Rental Check, landlords and agents can assess a prospective tenant’s creditworthiness and rent-to-income ratio within minutes, with the tenant’s consent and based on up-to-date bank data.
