From Principles to Practice DIGITAL

16APPROACH 3 Incentivize higher occupancy levels Municipalities may consider taxing or regulating vacant units or short-term rentals to return residential supply to the local market. Policy-makers may also promote mechanisms for alternative mortgage models that incen- tivize occupation, and where the benefits of occupation are passed back to the owner. Regulations may also be used to rebalance occupation levels to allocate housing based on household size. SHORT-TERM LETTING RESTRICTIONS, VIENNA In Vienna, restrictions on the short-term letting of flats were introduced on 1 July 2024. In view of the increasing conversion of residential space into tourist accommoda - tions, the city authority felt compelled to take regulatory action. However, offering a flat exclusively for short-term letting is no longer permitted. Home sharing is allowed up to 30 days per year. Similar measures have already been taken in Amsterdam, Barcelona and Paris.9APPROACH 4 Address tenant security Strengthening tenant security through clear tenancy regulations can improve the quality of rental accommo- dation, promote long-term stability and reduce displace- ment risks. Enforceable tenancy regulations can prevent sudden rent hikes, displacement and unfair practices. Measures such as controlled rent adjustments, reloca - tion support during redevelopment and standardized tenancy agreements support a more predictable and equitable rental market. This stability not only enhances housing security but also supports tenants’ health and well-being, as stable housing is closely linked to better physical and mental health. By improving rental condi- tions and ensuring long-term security, these policies help build more resilient and inclusive communities. INTERNATIONAL EXAMPLES Germany’s Mietpreisbremse (rent brake) limits rent increases in high-demand areas to no more than 10% every three years above the local comparative rent, aiming to prevent rapid rent hikes and maintain afforda - ble housing options. In response to urban development pressures, Vancou - ver implemented the Tenant Relocation and Protection Policy (TRPP)10 to protect renters from displacement due to new construction projects. The policy includes provi- sions such as: ▪Providing financial compensation to displaced tenants ▪Assisting with relocation to comparable housing ▪Ensuring clear communication throughout the reloca- tion process Singapore has established standardized tenancy agree- ments that clearly outline the rights and responsibilities of both landlords and tenants. These agreements pro- vide tenants with greater certainty regarding rental terms, dispute resolution mechanisms and protection against unfair practices, contributing to a stable and se- cure rental market. 17Getty Images Unsplash