Rent subsidy rules can be hard to understand. Who is entitled to receive rent subsidy? Am I entitled to receive rent subsidy? Rent subsidy is a benefit available to anyone paying rent. Read the following article and get an overview.
What is rent subsidy?
Rent subsidy is a contribution from the public authorities, which is tax-free. It is a contribution that tenants can receive to help paying the rent. It is not to cover the full amount of the rent, but as a supplement to it. The amount is different from each individual, and there are various factors that help determine the amount. Some of the most important factors are, among other things, income and the fortune of the household.
Rent subsidy rules - Who is entitled to receive rent subsidy?
What do the rules say about; who is entitled to rent subsidy? As a tenant, you can apply for rent subsidy if you rent an apartment with your own kitchen. It also requires that you live in the residence all year round.
If you live with your boyfriend, sibling or maybe several of your friends, only one of you can receive rent subsidy. The household is responsible for the internal financials. It is also possible that your rent subsidy is paid directly to your housing company, who deducts the amount from your rent.
If your parents have bought the apartment for you, you can still apply for rent subsidy following the common rules. This just requires that you signed a tenancy agreement.
The rules states that you can also apply for rent subsidy if you are a subtenant. It is important that you have a tenancy agreement between you and the sublessor. When you apply for rent subsidy, you have to attach a copy of the tenancy agreement. Notice that it is important that your sublessor has notified the national register of a change of address. When you apply for subsidy, the authorities look up the economy of the respective tenant. Your sublessor’s income will be included in the calculations, which can lead to the fact that you lose the right to subsidy, because the overall income for the household is too high. We hope you got an answer to all your questions regarding who can receive rent subsidy.
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There is no reason not to receive rent subsidy. It is a grant that is available to almost all tenants and it is not offset anywhere. Therefore, it is a fantastic addition to the rent.
How is rent subsidy calculated?
Rent subsidy is calculated based on various factors. Some of which can be the size of the apartment, rent, the number of residents and their annual income.
The income of the household
The overall income of the household influences the determination of the amount. The calculation of the overall income includes:
– State Education Grants (SU)
– Income earned from self-employment
– Income derived from investments
– The fortune of the household
If you have a savings account, there is a risk that it will affect the amount of your rent subsidy. An additional amount will be added your annual income, if your savings exceed a specific amount. From 2018, you and the additional residents are allowed to have a total fortune of DKK 756,100 without this being included in the calculation of the allocated rent subsidy.
Your fortune is not limited to a savings account. The value of your car, debt and so on is also included in your total fortune.
Size of the tenancy
You are entitled to receive a smaller rent subsidy if your tenancy is larger than 65 m2. This limit rises by 20 m2 per person living in the tenancy. According to the rules of rent subsidy, you are entitled to receive full rent subsidy if you live with two roommates, as long as your tenancy is no larger than 105 m2. You will receive 70% of your entitled rent subsidy, if you live alone in a tenancy of 70 m2. This principle also applies if you live several people in a larger tenancy. For example, if you live two people in a tenancy of 90 m2, you will receive 90% of your entitled rent subsidy.
You can calculate the size of your entitled rent subsidy on borger.dk. You will have to log in with NemID, so have this card ready.
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How do you apply for rent subsidy?
You apply for rent subsidy digitally on borger.dk/boligstøtte (only available in Danish). As mentioned, you have to log in with NemID. In addition, you can see who can apply for rent subsidy here as well.
But the article above should also give a clear answer on this.
Note: You can also apply with a form, if you are excluded from all digital matters.
You will be asked to provide information regarding your rent. You have to remember that your utilities are not included in your rent. Therefore, you must not include utilities in this.
Utilities that must not be included in your rent:
- Phone, internet or broadband
- Prepaid rent
- Deposit and repayment of deposit
- Laundry expenses
- Community antenna
If you pay for improvements of the tenancy separately, you can add this amount to your rent.
Save during the process
You have the opportunity to save during the process of filling out the formula on the website. That way, you are able to close it and continue later. For example, if you figure out that you need some documentation, but don’t have time to find it right away. Therefore, you can continue later without having to start over.
It is a good idea to have your tenancy agreement ready if you live in a private tenancy. This must be attached in your application for rent subsidy. It is a requirement that the tenancy agreement is signed by the landlord.
Corporate housing company
You will not have to include your tenancy agreement if you rent the apartment from a corporate housing company. In this case, Udbetaling Danmark will gather relevant information from your housing company on their own.
Register move to the National Register of Persons
Remember to notify the authorities of a change of address well in advance. It is also a recommended to do this before you apply for rent subsidy. You can apply for it when you have notified the authorities of a change of address.
Your application for Udbetaling Danmark will be processed after you moved on to your new address. Because of this, you will not receive your rent subsidy until after you moved in.
30 days after moving in
If you wish to receive rent subsidy from the day you moved in, you will have to apply no later than 30 days after. The rules of rent subsidy states that you will be paid back when the application is processed.
If you need any further assistance, you can use the guide in this video.
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.
How is rent subsidy paid out?
There are two ways your rent subsidy can be paid out. First, it can be paid directly to you and show on your bank account each month. Second, it can be paid directly to your housing company. The housing company will deduct the amount from your monthly rent.
Again, we remind you, if you wish to receive your rent subsidy as fast as possible, apply no later than 30 days after you moved in on your new address.
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The rules of rent subsidy when moving out
Your entitled rent subsidy does not automatically move with you, when you change your address. When moving out, you will have to visit borger.dk and stop the distribution of your rent subsidy. Then you have to make a new application based on your new address.
We hope the article above helped you regarding the rules of rent subsidy. Equally, we hope you had all your questions answered regarding who can apply for rent subsidy and whether you can get rent subsidy. If you have problems with your landlord, do not hesitate contacting us. It is free to have your case assessed.