AUSTRIA Law and Practice Contributed by: Christoph Urbanek, Irena Gogl-Hassanin and Mario Schiavon, Urbanek Law
provided that separate metres are available. Tel - ecommunications services (eg, internet or tel - ephone connections) are often ordered and paid for individually by tenants. The exact regulation is set out in the respective lease and depends on the technical equipment and use of the building. 6.11 Payment of Property Taxes In the case of commercial leases, the tenant (les - see) is generally responsible for paying the oper - ating costs, including the pro-rata property tax, provided that this is expressly stipulated in the lease – which is common in commercial leases. In the absence of a contractual agreement to the contrary, the landlord (lessor) generally bears the property tax and other property-related charges. It is therefore common practice in the drafting of contracts to pass on all apportionable costs such as public charges, insurance, mainte - nance and property tax to the tenant as part of the operating costs. In the case of residential leases, however, stricter restrictions under ten - ancy law apply with regard to the passing on of such costs. 6.12 Insurance Issues The costs for insuring the rented property are usually borne by the landlord, although these costs are usually passed on to the tenant in full or in part as part of the operating costs. As a rule, building insurance covers damage caused by fire, water pipes, storms, hail, natural disas - ters and, in some cases, vandalism. During the COVID-19 pandemic, tenants in Austria were only able to successfully claim under business interruption insurance policies in exception - al cases, as many of these policies explicitly excluded pandemics or officially ordered busi - ness closures from insurance coverage or were unclear in their wording. As a result, many ten - ants continued to pay rent even when they were
temporarily unable to use their business prem - ises, which led to numerous legal disputes. 6.13 Restrictions on the Use of Real Estate Landlords can contractually specify how a ten - ant may use the property, for example by means of dedications in the lease that prescribe a spe - cific use (eg, as office, shop or warehouse) and exclude other types of use. In addition, public law provisions such as the building and region - al planning law, which regulates the permissi - ble use according to dedication in the zoning and development plan, apply. Use may also be restricted by commercial law provisions, fire safety requirements and heritage protection regulations. Both contractual and statutory pro - visions must therefore be observed when using rented properties, with particular attention being paid to official approvals and operating licences in the case of commercial use. 6.14 Tenant’s Ability to Alter and Improve Real Estate A tenant may only make structural changes or improvements to the property with the approval of the landlord. This approval can be contrac - tually regulated in the lease and is particularly necessary for structural or substantial interven - tions. The landlord can impose conditions, such as the following: • the work must be carried out professionally and at the tenant’s own expense; • there should be no impairment of the building fabric or other tenants; and • reconstruction to be carried out at the end of the lease if requested. In many cases, landlords also require a build - ing notification or permit and proof of liability insurance during the construction work. Making
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