It can be challenging to figure out the ins and outs of the rules on rent subsidy. Who can receive rent subsidy? Can I get it? Rent subsidy is a service that is available to everyone that rents. Read this article to get an overview.
What is rent subsidy?
Rent subsidy is a contribution from the state which is tax free. It is a contribution that tenants can receive as a help to their rent. It is not supposed to cover the full amount but instead be a subsidy. The amount you receive differs from person to person, and there are different factors that determine the amount. Some of the most important factors are income and the fortune that the household is in possession of.
Rent subsidy rules - who can receive it?
What does the rules on rent subsidy state? Can I get it? As a tenant, you can apply to get rent subsidy if you rent a tenancy with your own kitchen. It also requires that you live in the tenancy all year round. It is also possible to get the rent subsidy paid out directly to your rent association that will deduct the amount from your rent.
There is no reason not to receive rent subsidy. It is a contribution that is available to almost all tenants, and it is not deducted from anywhere. It is therefore a brilliant contribution to the rent.
If you parent have bought the apartment for you, you can still apply to get rent subsidy. It only requires that you have a signed lease with your parents.
According to the rent subsidy rules, you can apply to get rent subsidy if you are a tenant in a sublease. Here is it important that you write up a lease between you and your sublessor. With the application for rent subsidy, you must attach a copy of your lease. You must also be aware whether you sublessor has registered his/her relocation to the National Register of Persons. When you apply for rent subsidy, they look at the income for the concerned residents based on this register. If your sublessor has not registered the relocation, his/her income will be taken into account. If this is the case, you will likely lose your right to rent subsidy, as the income for the address is too high. We hope that we have answered some of your questions on who can receive rent subsidy.
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How is rent subsidy calculated
The rent subsidy is calculated based on various factors. Such factors are for example the size of the tenancy, rent, number of residents and their yearly income.
The household’s income
The household’s income is significant for the determination of the amount of rent subsidy. The calculation of income is for example based on:
- State education grant (SU)
- Income from independent business
- Positive capital income
The household’s fortune
If you have a savings account there is a risk that this will affect your rent subsidy. If your fortune exceeds a certain amount, a fortune supplement will be added to your yearly income. In 2018, the total fortune of the household allowed was 756,100 kroner without it being involved in the calculation of the rent subsidy.
Your fortune does not consist of your savings. The value of your car, debt, etc. is also calculated into your total fortune.
Size of the tenancy
If your tenancy is bigger than 65 m2, you are eligible for a smaller amount of rent subsidy. this limit increases with 20 m2 for every additional resident in the tenancy. This means that if there are two residents in a tenancy smaller than 105 m2, you are eligible for the full amount of rent subsidy. If you live alone in a tenancy of 70 m2, you will receive 70% of the rent subsidy that you are eligible for. This is also the case if you are several tenants in a bigger tenancy. For example, if you live two people and have 90 m2, you will receive 90% of the rent subsidy that you are eligible for.
On borger.dk, you can calculate the approximate amount of rent subsidy that you are eligible to receive.
Why should you get help from DIGURA?
Every month, we help thousands of tenants both via our membership solution and our case processing. When we process the cases, we achieve a positive result for the tenants in 98% of the cases. We are here to help you who are potentially being deceived by your landlord, and you who actually want to keep the money you are entitled to.
When can you apply for rent subsidy?
You apply for rent subsidy digitally on borger.dk/boligstoette (only available in Danish) where log in with NemID. Here, you will be able to see the requirements for rent subsidy.
NB: you can also apply via a form if you have been digitally exempted.
You will be asked to inform about your rent. You must remember that it is your rent only and not including utilities. You, therefore, do not need to take your utilities into account here.
Utilities that does not need to be included:
- Phone, internet or broadband
- Rent paid in advance
- Deposit and repayment of deposit
- Laundry expenses
- Communal aerial
If you pay towards maintenance of the tenancy separately, you can add this amount to your rent.
Save as you go
While you fill out the form on the website, you can save it. This means that you can close it down and fill out the rest later without losing everything.
You might need to find some documentation as you go but do not have time og access at the given time. It is, therefore, easy to return and continue without starting from scratch.
If you live in a private tenancy, it is a good idea to have your lease ready. This needs to be attached to your application when applying for rent subsidy. It is a requirement that the lease is signed by your landlord.
Common housing association
When you live in a tenancy in a common housing association, you do not need to attach your lease. Udbetaling Danmark will get the necessary information from your housing association.
Register move to the National Register of Persons
Remember to register your move to the National Register of Persons in good time. It is also recommended to do it before you apply for rent subsidy. When you have registered that your are moving or have already moved, you can apply for rent subsidy.
Your application to Udbetaling Danmark will be processed after you have moved in. Therefore you will also receive the rent subsidy after you have moved in.
30 days after moving in
If you want rent subsidy from the day you move in, you must send your application 30 days after moving in at the latest. The rules state that you will receive the rent subsidy retroactively when your application has been processed.
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Become legally secure in your tenancy for 49 kroner.
Are you afraid of being cheated or have you already experienced it?
You can become a member of DIGURA’s Care Pack where you can get help with your questions and tenancy issues. You can feel secure in your tenancy for only 49 kroner per month.
Benefits of membership
How is it paid out?
There are two way your rent subsidy can be paid out. Firstly, it can be paid out directly to you and thereby go into your account every month. Secondly, it can be paid out to your housing association where it will be deducted from your monthly rent.
We remind you that if you want rent subsidy paid out as early as possible, you must apply for it 30 days after you move in at the latest.
Rules for rent subsidy when moving out
Your rent subsidy does not automatically come with you, when you move address. When you move out, you have to visit borger.dk and end your rent subsidy for your current address and apply for it again for your new address.
We hope that the information above has helped you to understand the rules on rent subsidy. If you end up having issues with your landlord, do not hesitate to contact us. It is completely free to get your case assessed.