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APARTMENT · LETTING

Valuing a let apartment held in individual ownership

For a let apartment held in individual ownership, enforceable contractual terms, achievable income and costs remaining with the owner matter alongside location and condition. Current receipts alone are not a sufficient valuation basis. Record the contract, actual payments and future assumptions separately. Valuing an apartment with vacant possession requires a substantiated basis for doing so; hoped-for later vacation or higher rent on reletting initially belongs in a separate scenario.

AT A GLANCE
  • Keep basic rent, operating costs, VAT and deposits as separate items.
  • Check the fixed term, contract extensions and application of tenancy law against the particular contract.
  • An adopted sustainable income is not simply an extrapolation of the latest bank receipt.

What is being sold: an ongoing tenancy or vacant possession?

First describe the position at the valuation date: who uses the apartment, on what contractual basis and with which ancillary areas? Also record a separately let parking space or promised garden rights. A let unit appeals to different purchase interests from an apartment immediately available for owner occupation. This does not, however, imply a universally valid percentage discount.

A sale does not automatically terminate a tenancy agreement. Within the scope of § 2 MRG, successors in title are bound by the main tenancy agreement under the conditions set out there. The legal starting point must therefore be established before a valuation assuming vacant possession. If there is no secure basis for termination, the existing tenancy continues to be taken into account in the base case.

Foundations: RIS [1]

Which contractual questions must be resolved before assuming income?

Collect the original tenancy agreement, all amendments, extensions, indexation notices and special agreements. In particular, have rent determination, the fixed term, termination rights, agreed maintenance responsibilities and permissible cost recovery checked. The description individually owned apartment does not alone determine whether the Tenancy Act applies. The building, its construction, subsidies, contract dates and possible exemptions may be relevant.

An end date stated in the contract is not enough to value the apartment as certainly vacant from that date. § 29 MRG contains requirements for the validity of fixed terms and rules on renewal; transitional provisions must also be considered for changes from 2026. Create a chronology of contract signings and extensions rather than carrying an old fixed-term note forward unchanged.

Foundations: Stadt Wien [2] · RIS [3]

Turning the monthly payment into a verifiable annual overview

For a complete year, record each month's basic rent demanded and the payment received against it. Keep operating costs, heating costs, VAT and other items alongside these separately. This prevents amounts to be passed on from appearing as landlord income. Deposits are security and do not belong in recurring rental income.

Mark reductions, additional payments and arrears with the period concerned. A large December receipt may include a catch-up payment and need not be the new monthly rent. Also check that payments have actually been allocated to the correct contract. Initially, anonymised contract identifiers suffice for the valuation documents; names or bank details are passed on only to the extent required by the commissioned examination.

Working overview for a let apartment
ItemDocumentationValuation question
Basic rent dueMonthly rent demand and link to contractIs the amount valid and sustainable?
Basic rent receivedAllocate payments to the periodAre there losses or merely timing differences?
Operating and heating costsSeparate demands and accountsWhich costs remain with the owner?
One-off paymentsAdditional payment, deposit or other reasonDoes the amount belong in income at all?
Owner costsManagement, maintenance and other burdensWhat should be allowed for this particular property in future?

Which costs reduce income?

Compile the expenses that remain with the owner under the particular legal and contractual position. These may include non-recoverable management costs, maintenance within the unit, vacancy expenses or other property-related costs. The property manager's payment demand must be broken down for this purpose. A total labelled operating costs is not yet a suitable reconciliation to the valuation model.

Distinguish the ongoing cash-flow budget from a professional income valuation. Reserve contributions, specific refurbishment invoices and maintenance incorporated in the model must not reflect the same expense multiple times without checking. Repayment of your personal loan describes your financing and is not simply added to the property's general operating expenses. Known special contributions and major investments need treatment appropriate to their timing.

Value existing income and conditional possibilities separately

Under § 5 LBG, the income approach considers future or achieved net income, appropriate capitalisation and expected useful life. Neither gross rent nor an arbitrarily chosen yield is sufficient. Which methods and parameters suit your apartment depends on the subject, purpose and available market evidence.

Have the evidenced existing tenancy presented as the base case. Later reletting or owner occupation receives a separate scenario with prerequisites, timeframe, interim costs and a permissible income assumption. Where results differ, ask about precisely these variables. Comparison with apartments offered with vacant possession can provide additional guidance, but cannot replace an explanation of the existing tenancy.

Foundations: RIS [4]

UNDERSTAND THE PRACTICE · FICTIONAL EXAMPLE

Fictional example: a 1,030-euro payment is not 1,030 euros of income

Invented simplified monthly figures excluding VAT: 850 euros basic rent and 180 euros operating costs to be passed on in full. The example assumes the amounts are legally permissible.

  1. The annual basic rent due is 850 × 12 = 10,200 euros. The 2,160 euros of operating costs are recorded separately.
  2. Actual receipts against basic rent were 9,900 euros. An outstanding 300 euros is checked for its cause and recoverability.
  3. With assumed sustainable owner expenses of 1,800 euros, the basic rent due would initially produce a surplus of 8,400 euros before any further allowance for lost income, personal taxes and financing.
What you can take away

The calculation prepares the income figures. It is not a complete income valuation and does not determine an apartment value without contractual review, a cost model and capitalisation.

FOR YOUR PROPERTY

Your next assessment steps

Record what you have already clarified and which documents you still need.

0 of 4 items clarifiedYour personal selection

File the contract and all extensions chronologically

Makes the fixed term, ancillary agreements and time-sensitive legal questions verifiable.

Where can I obtain the supporting information?

Your own contract file, tenancy management and, where appropriate, legal advice.

Reconcile twelve months of demands and payments

Separates agreed rent from receipts actually allocated to it.

Where can I obtain the supporting information?

Rent account, bank records and accounts.

Break down owner costs and known investments

Prepares the sustainable income and capital requirement.

Where can I obtain the supporting information?

The property manager, your own invoices and technical documents.

Attach a prerequisite to every future rent assumption

Prevents potential from being equated with the secure existing position.

Where can I obtain the supporting information?

Draw up the valuation instruction with the professional carrying out the review.

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Sources and date

The following sources support this main article. For your specific property, current documents and the applicable conditions matter.

  1. RISTenancy Act § 2: main tenancies, subletting and succession in title
  2. Stadt WienScope of the Tenancy Act (§ 1 MRG)
  3. RISTenancy Act: particularly § 29 and transitional provisions
  4. RISProperty Valuation Act: particularly § 5, income approach

Editorial date: 11/09/2026. Examples explain relationships and do not contain an individually prepared property valuation. Editorial work and sources.

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YOUR NEXT STEP

Use the knowledge for your property.

Prepare a valuation with documented tenancy status
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