Crackdown on Illegal Hotels and Airbnb in Vienna's Municipal Housing

In Vienna, short-term rentals are now strictly regulated. However, during inspections, not only individual accommodation providers are caught: during recently conducted focused operations by the building police, even two illegal hotels were discovered. There is also a strong crackdown on tenants of municipal buildings who have offered or are offering their apartments on platforms like Airbnb without permission.

Since July 1, 2024, stricter rules for the tourist short-term rental of apartments have been in effect in Vienna. This is prohibited, for example, if the rental period exceeds a total of 90 days per year. This is only possible with an exceptional permit. The regulations are monitored by a newly established department at the building police (MA 37).

Focused operations led to illegal hotels in Vienna

According to the office of the responsible city councilor Kathrin Gaal (SPÖ), inspections take place several times a week. Reports and suspected cases are checked. However, in certain neighborhoods, there were also focused operations - based, among other things, on their own online research on the relevant platforms. Two illegal hotel operations were uncovered on Wiedner Gürtel. Large-scale rentals were conducted in the buildings. Numerous improper uses were also found in a high-rise in Favoriten.

By the end of March 2025, a total of 887 reports had been received by the department. It has already filed 163 penalty applications. In cases of serious violations or repeated offenses, the maximum penalty according to the city can be up to 50,000 euros per apartment. However, there are also landlords who take the legal route: since the amendment came into effect, a total of 808 applications for short-term rentals have been received by the building police.

"With the restrictive new regulation of short-term rentals in Vienna, we have succeeded in specifically mobilizing vacant properties. At the same time, we were able to preserve the original idea of short-term rentals - private individuals who want to make their apartment available due to a longer trip - with the 90-day rule. The results of the inspections and the political feedback show that we have found a very good path," said Housing City Councilor Gaal in a statement on Monday.

Municipal apartments illegally rented: 250 cases discovered

There are no deadlines for municipal apartments. Their subletting and further renting have always been generally prohibited. The city was particularly bothered by the offering of such properties on Airbnb. In 2020, Wiener Wohnen sued the platform and won the case in 2022 after several instances. Since then, Airbnb is prohibited from offering municipal apartments, and the company must ensure that no rental listings for a municipal apartment are found there.

The ruling also required Airbnb to disclose the revenues and profits generated from the leasing. Subsequently, the landlords were tracked down, with detectives reportedly being used according to the city hall. Result: From 2012 to 2022, a total of 250 people illegally sublet their municipal apartment, with the minor threshold of a few nights being significantly exceeded in about 100 cases.

There are now consequences for those affected: Termination of the rental agreement and a permanent ban from the municipal housing. 70 people have already given up their municipal apartment as a result. Additionally, Wiener Wohnen intends to demand the retroactive surrender of the profits made, as stated. People who made their apartment available for only one or a few days were warned.

Opposition Demands Further Measures

The Greens believe the city's measures do not go far enough. They criticized in a statement that the "theft of living space" by the platforms had been downplayed for a long time. "We have been pointing out for years that more and more apartments are being permanently converted into tourist apartments," said party leader Judith Pühringer. The Greens are calling for, among other things, a further expansion of residential zones where no commercial short-term rentals are possible.

The ÖVP urged a further intensification of inspections. "Instead of excessively praising themselves for supposed successes during election times, the responsible city councilor should finally do everything possible to ensure truly effective controls in connection with the prohibited subletting at Wiener Wohnen," said housing spokesperson Peter Sittler. Because 100 tracked cases out of 220,000 municipal apartments are not realistic. The number must be higher given many reports and suspicions, he was convinced.

(APA/Red)

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