Since mid-2015, Germany has enforced the so-called “Bestellerprinzip” (buyer-pays principle) for rental apartments. In simple terms, this means that whoever commissions the agent also pays the commission. The next step — extending this principle to property sales — was already being discussed at that time. In Austria, the pros and cons of this principle have been the subject of intense debate.

After roughly a year and a half of the German model being in effect, some conclusions could already be drawn — and they did not necessarily speak in favor of the new system:

• Rents have risen, as landlords factor agent costs into the rent.
• The supply of rental apartments has dropped by approximately 30%.
• Vacant apartments are being let informally through personal networks of friends and acquaintances, bypassing the open market.
• Due to landlords self-marketing their properties, vacant apartments are no longer brought to market as quickly as they would be through a professional agent.
• The quality of listings has declined due to the lack of professionalism in the market.
• Agents in Germany now no longer represent tenants — they simply send inquiring renters away.

A study commissioned by the Austrian Association of Real Estate Agents, conducted by Marketagent.com, found that tenants and buyers in Austria are generally satisfied with the services provided by agents, and 82% of surveyed tenants and buyers would recommend their agent to others. This suggests that Austria’s highly professionalized and transparent real estate brokerage industry functions very well.

Nevertheless, it is often overlooked that agents provide extensive services that also benefit tenants and buyers. Here is a brief overview:

• Market overview: The agent knows the properties available on the market, or can potentially source them from colleagues.
• Pricing guidance: The agent advises you on rental pricing and market values.
• Search criteria matching: The agent will only suggest properties that match your specific requirements.
• Support through to the lease and beyond: You receive all relevant data, information, and documentation, along with advice about the property. The agent guides and advises you through to the completion of the agreement.
• Individual viewings.
• Strict compliance with all legal requirements.

These are just some of the many services agents already provide for tenants and buyers today.

This raises the question of why the demand for this principle persists. Politically, a statement like “we will ensure that landlords bear the agent costs” is of course a powerful argument, but given all the negative consequences, it can hardly be considered socially responsible housing policy.

Note: Since July 2023, Austria has implemented the “Erstauftraggeberprinzip” (first-commissioning-party principle) for rental apartments. The agent’s commission is now paid by the commissioning party — typically the landlord. The concerns described in this article from the earlier debate should be understood as historical context.

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Sources:

• derstandard.at — Austrian agents oppose German buyer-pays principle
• derstandard.at — Agents clearly reject buyer-pays principle
• derstandard.at — Vienna’s agents go on the offensive