Buying a Zinshaus in Vienna: how much income is permitted, and what do you need to check?

The essentials in brief

• Zinshäuser with a building permit issued before 1 July 1953 are as a rule fully subject to the Tenancy Act (MRG).
• Richtwert Vienna since 1 April 2026: €6.74 per m² per month; in Gründerzeit quarters no Lagezuschlag is allowed, and fixed-term contracts receive a 25% deduction.
• Old tenancy contracts with low rents (category rent or Friedenszins) often determine the income for decades.
• The Hauptmietzinsreserve must be used primarily for maintenance; its balance belongs in every review.
• Since 2018, a Viennese building erected before 1945 may only be demolished if the city confirms that there is no public interest in its preservation, or if repair is technically impossible or economically unreasonable.
• The value is determined using the income capitalisation method (Ertragswertverfahren); development reserves such as a loft conversion are added on top.

What the Tenancy Act allows in a Zinshaus

In the classic Viennese Zinshaus the Tenancy Act applies in full: for new main tenancy contracts for flats, the rent is capped by the Richtwert. Since 1 April 2026 it has been €6.74 per m² per month; surcharges and deductions for fit-out and location come on top, as do operating costs.

For commercial units a reasonable rent applies instead of the Richtwert. That is why the mix of flats, shops and converted lofts changes the income of a building considerably.

How is a Zinshaus valued?

Zinshäuser are valued using the income capitalisation method: the value is derived from the sustainably achievable rents minus management costs, using a capitalisation rate. Because many rents are capped by law, the purchase price is often far above what the current rent justifies — buyers pay for the development potential.

Three factors drive the value:

• Rent roll: How many old rents are there, and how many flats are likely to become vacant?
• Development reserves: loft conversion, extension, conversion of commercial units.
• Parifizierung: establishing condominium ownership allows individual flats to be sold later.

Yield figures without a rent roll and a building survey say little. We calculate with you on the basis of the actual contracts.

Demolition protection and maintenance obligation

Anyone who buys a Gründerzeit building usually buys a maintenance obligation along with it. The landlord must maintain the common parts of the building and remedy serious damage in the flats (§ 3 MRG); the Hauptmietzinsreserve must be used primarily for this (§ 3(3) no. 1 MRG). If it is not sufficient, a rent increase under § 18 MRG may become necessary.

Since the 2018 amendment to the Building Code (Bauordnung), a building in Vienna erected before 1945 may only be demolished if the city confirms that there is no public interest in its preservation, or if repair is technically impossible or economically unreasonable — even outside protection zones. A demolish-and-rebuild concept is therefore not a self-evident plan B.

Due diligence checklist before buying

Incidental costs as with any purchase: 3.5% Grunderwerbsteuer (property transfer tax), 1.1% for the Grundbuch entry, contract drafting and escrow, and an agent's commission of at most 3% plus VAT.