Airbnb and Co.: How the City of Vienna is closing loopholes

Airbnb and similar platforms have long been criticized for exacerbating the already tight housing market in many cities. In Vienna, officials have expressed growing concern over this trend, which has led to new regulatory measures aimed at curbing short-term rentals. Starting in 2027, all short-term rental properties, whether through platforms like Airbnb or other services, will need to register with local authorities. This requirement is part of broader efforts to prevent the conversion of residential buildings into commercial hospitality spaces, a practice that has become increasingly common. The city’s decision follows years of attempts to regulate the sector. Since the implementation of the 90-day rule, which limits the number of days a property can be rented out annually unless an exception is granted, there has been a surge in applications to reclassify existing homes as commercial accommodations. To address this, the city has introduced stricter rules requiring at least 80 percent of the usable area in standard floors to remain designated for residential purposes. These changes apply to all applications submitted since summer, ensuring that new developments are subject to the updated regulations. To enforce compliance, the city has established a new electronic register for short-term rentals, based on EU legislation. Property owners who fail to register will face fines of up to 50,000 euros per violation. Additionally, repeated violations will incur minimum penalties of 2,000 euros. The register will require both individuals and companies to provide information on their properties, allowing authorities to monitor and verify whether a space is suitable for short-term rental. Since the introduction of the 90-day rule, more than 2,484 complaints have been filed with the building police regarding suspected illegal short-term rentals, primarily from neighbors or adjacent property owners. As of July 2026, 558 criminal reports had been forwarded to the relevant authority, with the trend showing an upward trajectory. The city aims to ensure that these measures create a deterrent against speculative practices that prioritize profit over housing availability. While the city government maintains that these steps are necessary to protect residents' access to affordable housing, some political groups have raised concerns. The Greens criticized the pace of regulation, arguing that the current measures still allow too much flexibility for real estate speculators. They accused the mayor of failing to recognize the severity of the situation, calling the proposed changes a “free pass” for developers. In contrast, the tenant association has supported the reforms, viewing them as a step toward greater transparency and control over the rental market. The city’s approach reflects a balancing act between addressing the challenges posed by short-term rentals and maintaining the integrity of the housing stock. With the new rules coming into effect in early 2027, the focus will shift to enforcement and monitoring, marking a significant shift in how Vienna manages its urban housing landscape.