Peace rate
Friedenszins (also Friedenskronzins and Friedenskronzins ) is a term from Austrian tenancy law .
The peace rate, which was a legally regulated maximum rent, was based on rental contracts for apartments and business premises that were concluded before August 1, 1914. It was calculated in kroner .
These tenant protection was introduced in 1917, when due to the war three quarters of all dwellings were overcrowded. This was primarily intended to protect soldiers and their families from rent increases and layoffs. The freezing of rents at the peace rate (“Krone is Krone”) combined with the massive devaluation after the end of the war and extensive tenant protection led to the fact that the tenancy right to apartments (inheritable in the immediate family) became a property-like right over several decades. This resulted in a noticeable financial relief for the tenants (smaller apartments now cost the equivalent of fewer packs of cigarettes per month). For the landlords, on the other hand, this was tantamount to a creeping expropriation, as a result of which the construction of private apartment buildings, which was very important before 1914, came to a standstill due to a lack of achievable returns. The communal housing from the interwar period that began in its place was financed by taxes. Necessary repairs to old buildings could be financed in the case of insufficient rental income by the homeowner in an officially approved pay-as-you-go procedure in accordance with Section 7 of the Rent Act (later Section 18 of the MRG ( Tenancy Law )). Since this maintenance work had a huge impact on the effective rent, it was known as Section 7 Renovation.
Since the Tenancy Law (MRG) came into force in 1982, landlords have had the opportunity to raise rents that were still agreed on the basis of the peace rate (maintenance and improvement contributions). Since then, the peacetime interest rate no longer represents a statutory rent limit. As early as 1967, the peacetime interest rate was abolished as a rent ceiling for the conclusion of new rental agreements.
literature
- Charles Adams Gulick: Austria from Habsburg to Hitler. Danubia-Verlag, Vienna 1950, especially p. 71ff.
Web links
- Peace rate. In: Immobilienlexikon, edited by immomondo.at.
- Municipal housing. In: dasrotewien.at - Web dictionary of the Viennese social democracy. SPÖ Vienna (Ed.)
Individual evidence
- ↑ What is the Peace Interest? Retrieved from the tenant protection association Vienna on August 13, 2013