Housing regulation and rental costs in German-speaking EU

Housing regulations and operating costs in Austria, Germany, and Switzerland have undergone recent legal and economic shifts. In Austria, apartment operating costs rose by an average of 5.5 percent between 2025 and 2026, though the Mietrechtsgesetz (MRG) limits the types of fees, such as administrative or waste disposal costs, that landlords can pass to tenants.

Legal developments in Germany and Switzerland emphasize that tenants are only responsible for service charges explicitly defined in their rental contracts. In Germany, courts have clarified that operating costs must relate to the regular use of a building, meaning one-time maintenance or property value increases are generally the landlord's responsibility. Specific restrictions now prevent landlords from passing on cable TV fees and certain CO2 pricing costs to tenants.

In Switzerland, legal precedents have established that vague contract clauses, such as those stating ‘all costs are borne by the tenant,’ are insufficient to mandate service charge payments. Common permissible costs across these regions include water, heating, and cleaning, often managed through ‘Akonto’ advance payments that are reconciled annually.