Allegations of Price Gouging

699 euros in rent for a moldy micro-apartment

According to the rental company, the apartments’ amenities are one reason for the monthly rent of 699 euros.(Bild: Markus Wenzel)

A real estate company is facing allegations of price gouging. It is accused of renting out moldy apartments in Wels at exorbitant prices to people looking for housing who otherwise have few options on the real estate market. The company claims this is a diversionary tactic by a tenant who allegedly owes back rent.

A man living alone in Wels received one of the best Christmas gifts he could have hoped for: he found a new apartment. For 23 square meters, he’ll now have to pay “only” 230 euros. Most recently, he was paying 699 euros for a slightly larger “garage apartment” in a parking lot. “That’s half my monthly salary. Now I hope I’ll finally get healthy again,” the worker told the “Krone Oberösterreich” during a site visit.

“The mold made me sick. I often brought this to the landlords’ attention. They just kept putting me off,” the Wels resident says disappointedly. When it rains, water also seeps into the ground-floor apartment, which has only a single window. The view: a large parking lot. “Cars are being repaired late into the night and are probably being sold illegally,” says the Wels resident.

The managing director of the real estate company responded quickly to the inquiry from the “Krone,” which was written anonymously at the tenant’s request. He therefore suspects a “distraction tactic” by a tenant who is reportedly behind on rent.

Mold Due to Improper Use
“The mold infestation is due to improper use.” He explained that infrequent and insufficient ventilation, combined with drying laundry or cooking inside the apartment, is responsible for the mold. “There was absolutely no mold growth under the previous tenant. A technical inspection revealed no structural defects. We are also not aware of any other cases of mold in our building,” the managing director assures.

 The total price is determined by the amenities and flexibility offered. Due to the higher pricing, long-term tenants are not our target audience.

Geschäftsführer der Immo-Firma

He explains the price of 699 euros as follows: “It’s a fully furnished apartment for technicians, sales representatives, and people who need a place to live quickly. Operating costs, electricity, internet, and insurance are included. Long-term tenants are not our target audience.”

The short-term leases allow the Tenant Protection Act to be circumvented.

Ralf Drack, Welser Gemeinderat

Wels City Council member Ralf Drack shakes his head: “Short-term rentals are a way to circumvent the Tenant Protection Act. The apartment is a kind of tourist facility. The real estate company targets people who have no other choice when looking for housing because they’re in Austria for only a short time.”