Austrian Tenants to Receive €1.16 Million in Refunds for Overcharged Fees

The Austrian Chamber of Labor (AK) has successfully reclaimed overcharged fees from the real estate company Estrella, securing €1.16 million in refunds for tenants. On Monday, the AK announced that affected renters would receive an average of €2,324 per apartment after a favorable ruling from both the Vienna Higher Regional Court and the Supreme Court (OGH). The case was pursued by the AK as a collective legal action, sparing tenants the need to file individual lawsuits.

The Supreme Court confirmed that Estrella Immobilien Invest AG, part of the Wlaschek Foundation founded by the late billionaire Karl Wlaschek, used prohibited contract terms in its rental agreements. As a result, Estrella can no longer apply these terms or rely on them in cases involving consumer protection under specific provisions of the Tenancy Law Act.

The tenants affected will receive partial reimbursements for the billing periods from 2020 to 2023, calculated at €41.52 per square meter, including VAT and interest. Estrella will notify each renter in writing of their respective refund amounts in the coming weeks and has committed to aligning future billing practices with the court’s ruling. Former tenants can also apply for refunds by contacting the provided AK email.

The unauthorized fees were imposed at six newly constructed residential complexes and some renovated rooftop apartments in older buildings, which are outside the full scope of Austria’s Tenancy Law Act. The ruling represents a significant victory for tenants’ rights, particularly in cases of housing complexes built outside strict rental protections.