Changes in housing law from October 1, 2006

The Housing Rights Reform Act 2006 – WRN 2006, which amends the Rent Rights, Home Ownership, Land Lease and Housing Nonprofit Law, comes into force on October 1, 2006 and contains the following significant changes:

:: Rent Act

Capital gains tax relief for principal rental reserve
According to § 20, paragraph 2, the Expenditure items to reduce the principal rental reserve, which had amounted to 40% by 2004 and was lifted by the VfGH, from 2005 with income tax liability 35% and with corporate tax liability 25% determined if the landlord has not collected an increased principal rent in accordance with § 18 during the calendar year.

Limited access rights for seniors living in housing
According to § 12(3), seniors (over 60a) are not entitled to assign their principal rent to relatives in descending line or to chosen children in senior living apartments.

Termination/Extension of Lease Agreements
Pursuant to § 29, rental contracts that are not extended after the expiration of the agreed contract period shall be deemed to have been terminated., unique open 3 years extended. However, the tenant has the right - within the extension - to terminate the contract in writing with a period of 3 months. If the contract is not terminated again after the extension expires, it will be extended indefinitely.

Resignation
Lease agreements may still be terminated by the landlord in accordance with § 33 only by court order, while by agreement Tenant one Formless written notice of termination enough.

Extending the exceptions to the termination protection
According to § 1, paragraph 4, outbuildings (e.g., attic floors) with a building permit issued after December 31, 2001, and additions, if the usable area is greater than that of the old part, are not subject to a building permit issued after September 30, 2006, which protects against cancellation.

Replacement of investment costs
In addition to the replacement of expenses for departing tenants (e.g., water, electricity, gas, and heating installations, etc.) listed in § 10, paragraph 3, heating units and water boilers are also included.

Conservation measures
In principle, the landlord is obliged to maintain the standard of the rental property. However, according to § 6, the residents of the house can also be required to remove it through appropriate measures if there is a significant health risk.
For example, if water runs for a longer period of time in plumbing systems in older buildings to prevent a health hazard, the landlord doesn’t need to change anything.

Interim rent as a protection for landlords
This Regulation exists for a long time and, in the ongoing termination proceedings, seeks to postpone the request for a review of the rent. The landlord has the option during the termination or eviction proceedings to request a Application on the determination of a interim rent payment to take action if the tenant has become in default of payment, which can have a mitigating effect for the landlord.

:: Residential property law

Separate account management by the administrator
Section 20, paragraph 6, requires the administrator to maintain either a separate account for each owner of the condominium or an account for all related deposits and withdrawals. Accordingly, the administrator must strictly separate the external funds from its own assets.

Repair reserve
Section 31(2) also requires the administrator to keep these funds in an accessible account, to invest them fruitfully, and to use them to cover the corresponding expenses.

More Changes These include the grounds for ownership of parking spaces, the change in the use value, as well as co-ownership shares, and detailed provisions for the transfer of ownership in the event of the death of a partner.

Image: © dusk - Fotolia