Assumption of Rent Arrears

Your lease specifies how much rent you pay each month and when it is due. In most cases, this is the third business day of the month. If you are unable to pay your rent by this date, you are in default. This results in what is known as rent arrears.

If you realize that you can no longer pay your rent on time, let your landlord know. You should also contact your social services office or the Jobcenter as soon as possible to request financial assistance.

If you are registered as unemployed and receive basic income support for housing and heating, the Job Center is the right place to turn to. If you receive cost-of-living assistance or basic income support for seniors, or if you can no longer pay your rent due to your low income, contact the social services office.

Whether a person is eligible for this benefit is always determined on a case-by-case basis after reviewing the specific circumstances. You can submit an application if you have rent arrears and are therefore facing a notice of termination or an eviction lawsuit. The payment of rent arrears is intended to prevent you from losing your apartment.

Rent arrears may be covered if this is justified. This is the case if it helps secure your housing or resolve a comparable emergency situation. However, if you are at risk of becoming homeless, rent arrears should be covered, as this is necessary and justified to secure your housing. The Social Welfare Office or the Job Center will determine whether covering your arrears is necessary and justified. 

To qualify, the following requirements, among others, must be met:

• The costs of your current housing are reasonable
• Your landlord agrees in writing to continue the lease
• You have submitted a statement of intent to remain in the apartment for the long term
• You have no way of resolving the emergency on your own (for example, by using your assets, arranging an installment plan with your landlord, using your savings, or borrowing money from friends or relatives)
• Future rent payments are secured, for example, through direct payment by the responsible benefits agency
• No other specific (suitable) housing is available to you

Coverage of rent arrears depends on your income and assets. In most cases, this benefit is provided as a loan that you must repay.

As a rule, the Jobcenter withholds 10 percent of your standard benefit amount each month to repay the loan while you are receiving benefits. If your benefits end, the outstanding loan amount becomes due immediately. Repayment of the outstanding amount is arranged with the Jobcenter.

The social welfare office may also withhold a portion of your standard benefit amount each month to repay the loan. However, this is only possible if you have previously submitted a written declaration stating that you are waiving benefits for this purpose (known as a “declaration of assignment”).

In addition, under certain conditions, it is possible for your rent arrears or housing costs to be transferred directly to your landlord. This ensures that the money is used solely for this purpose.

You can submitthe application for coverage of rent arrears in writing directlyto your social welfare office or job center right here.

You can apply to have your rent arrears covered in writing or online. It is best to schedule a consultation before submitting your application. A consultation is the quickest way to determine which documents you need to submit.

The following steps are necessary or should be considered:

• Optional, but recommended: Contact the relevant authority and schedule a consultation to have your personal and financial circumstances reviewed.
• Submit your application along with supporting documents in writing or online.
• If you have not yet had a consultation, you may be invited to an appointment.
• If all documents are complete (see next point), a home visit can optionally be scheduled with you.
  • If no home visit is scheduled, your application will be accepted during the initial appointment.
  • If a home visit takes place, your living conditions will be assessed. It will be determined whether your apartment is worth keeping.
• You must agree to have your landlord informed that you have applied for the assumption of your rent arrears.
• The responsible agency will review your application.
• You will be notified whether your rent arrears will be covered or not.
• If your rent arrears are to be covered, the agency will pay them directly.
• If you receive basic income support, the Job Center will withhold 10 percent of your standard benefit each month to repay the loan. If you receive Cost-of-living assistance or Basic welfare for the elderly and people with reduced earnings capacity, you must agree in writing with the social services office on the repayment of your rent arrears.

You can submita written application for assistance with rent arrears to your social services office or the Jobcenter, or online here (social services office) or here (Job center).

The following documents are required for the application:

• Application for Payment of Rent Arrears
• Current statement of claims/rent account statement
• Reminder notice/notice of termination/eviction lawsuit
• Rental agreement or other proof of the rent due; if applicable, rent certificate
• Utility bill
• Proof of income for all individuals living in the household (e.g., pay stubs, Jobcenter notification, children’s income)
• List of all other expenses, including supporting documents (e.g., phone bills, insurance premiums, bus tickets)
• Bank statements (including PayPal, savings accounts, or savings agreements) for the last three months for all household members

If applicable:

• Proof of debt obligations (e.g., installment payments and/or loan agreements)
• Rejection of an installment plan by the landlord or a bank
• Residence permit
• Additional documentation, if necessary

Termination without notice requires a serious reason (such as failure to pay rent). It allows the landlord to end the lease more quickly and is not subject to the agreed-upon notice period. You then generally have up to 2 weeks to vacate the apartment. If you fail to do so, your landlord can file an eviction lawsuit against you. However, in many cases, a termination without notice can be rendered invalid if you pay the rent arrears. The following conditions apply:

• You can pay off your entire rent debt within the two-month grace period following service of the eviction lawsuit.
• You have not previously received a termination without notice in the last two years that was rendered invalid by paying off the rent arrears.
• Your landlord has not simultaneously given you notice of termination in accordance with the standard procedure (with a notice period).

Contact the social services office or the job center as soon as possible to apply for assistance with paying your rent arrears.