In recent months, Vienna has introduced strict regulations on short-term rentals, raising concerns about the future of this market. However, while these changes may seem alarming, they offer a new landscape that could benefit compliant professional hosts.
The new law and its impact
From July 2024, Vienna has introduced strict controls on short-term rentals across the city. The new regulations aim to curb the proliferation of short-term rentals, which have been linked to rising rental prices and a shortage of long-term housing options. The law limits vacation rentals of private residences to a maximum of 90 days per year. Failure to comply can result in hefty fines of up to €50,000 or even up to two weeks imprisonment if the fine is not paid.
Why the law was introduced
The main reason for this law is to protect the availability and affordability of housing in Vienna. The city has seen an influx of properties being diverted from the traditional housing market to holiday rentals, particularly through platforms such as Airbnb and Booking. This shift has pushed up rental prices, making it harder for residents to afford rent. By restricting short-term rentals, the city hopes to reverse this trend and ensure that more properties remain available for locals.
What to do next
However, amidst these restrictions, there is an opportunity. Professional hosts can apply for a special permit—Ausnahmegenehmigung, that allows them to operate year-round without the 90-day limit. To qualify, hosts must meet all legal requirements, including obtaining the necessary permits from the city, complying with safety and zoning regulations, and ensuring that their properties are not located in designated residential areas.
This exemption could be a significant advantage for those willing to play by the rules. As many smaller, non-compliant hosts exit the market, the overall number of available rental properties will decrease. This reduction in supply is likely to increase demand for the remaining legally operating holiday properties, potentially leading to higher occupancy rates and increased profitability for compliant hosts.
A positive outlook
While Vienna’s new short-term rental regulations may appear restrictive, they also create a more controlled and potentially lucrative market for those operating within the law. The reduction in competition, coupled with the ability to offer year-round rentals, positions professional hosts to thrive in this new environment. Far from being dead, the short-term rental market in Vienna is being reshaped – and offers a promising future for those who can adapt.
Do you need help applying for a special permit? Dwell Bell is here for you, book a free consultation with our experts who will guide you through the process step by step. Let’s grow together and create new opportunities!
