Unemployment > Hartz IV > Rent and Heat

Hartz IV: Rent and Heating Costs

Definition, Explanation

Tips, Checklist

Definition, Explanation

When you receive Hartz IV benefits, your rent and heating costs are paid by the labour agency / ARGE (§ 22 SGB II). The amounts paid are the real expenditures and are earmarked. If it cannot be guaranteed that this money is used for rent and heating, then the labour agency will direct the payment to the landlord. Due to these payments, there is no further entitlement to receive rent money.

Prerequisite for the costs to be refunded is that they are appropriate. It is for the respective authority to judge whether this is so. Criteria of appropriateness are:

• individual circumstances (number of members of the household unit in need, respectively family members, age)
• living space of the place in question
• average local usual rent (great differences: countryside regions can be 4 Euros, while in cities up to 13.50 Euros / sqm)

Appropriate size of a place (regular case sizes):

• One person: up to 45 – 50 sqm
• Two persons: up to 60 sqm, respectively 2 rooms
• Three persons: up to 75 sqm, respectively 3 rooms
• Four persons: up to 90 sqm, respectively 4 rooms
• for every further person, except babies: each 15 sqm additional

Moving into a smaller, more appropriate place can not be enforced if

• you prove that there is no appropriate place to live available
• you receive benefits only temporarily and therefore subletting is not economic
• the rent cost limit is only exceeded by a minor amount, which makes moving houses uneconomic
• the rent cost limit is exceeded by less than 10 % and personal hardship can be proven

The place does not have to be rented. You can just as well live in an appropriate owned home. An owned home is considered appropriate up to 120 sqm, for a house up to 130 sqm. The costs of an owned home include possibly interest on debt, land tax, home insurance, ground rent and the additional charges inclusive heating like in a rented place. These costs are paid by the ARGE or the municipality. Annuity rental is not paid, since they count as asset creation.

If the home is rated not appropriate because it is too big, or the costs are too high, the receivers of Hartz IV can be demanded to move houses. The municipality

• pays the costs of a non-appropriate place (that is too big or too expensive) until you have moved and at the most for 6 months after the rating non-appropriate
• pays expenses for finding a new place, security deposits and moving costs if they have been applied for and approved
• grants a loan for the security deposit or even for rent debts. Due payments of rent and/or additional charges, especially heating costs, are paid in case of homelessness impending otherwise. Before anything is paid, existing assets have to be used for discharge of debts, within the limit amounts
• pays the rent, respectively pays the costs of an appropriate home (see above)
• pays heating costs

Not paid:

• costs of electricity or gas for cooking
• hot water

If you move when moving is not necessary, then

• increasements in expenses are not refunded, instead, only the previous amounts for rent and heating are paid
• juveniles below the age of 25, after having moved out of the parents' place, receive only 80 % of the regular benefit of unemployment benefit II. Rent and heating costs are not refunded. Also, one-time costs for fixture and furniture and for finding of a place are not refunded

When unmarried persons below the age of 25 move out of the parents' place and into a new own home, is paid by the municipality or ARGE only under certain conditions, which can be one of the following:

• The ARGE or municipality have approved to paying the costs
• The moving is required for the person's integration into the job market
• There are severe social reasons for not staying with the parents which have been certified
• There are severe reasons for moving

Besides the usual supportive payments, a one-time refund of fixture and furniture can be granted.

Tips, Checklist

• Before you move because the place is not appropriate, that is too big or too expensive, you should try subletting parts of the place and thus decrease the expenses
• Apply in time for refund of moving costs / house finding costs, security deposits and potential subsequent payments of additional charges
• Before you sign the contract for a new place, get the approval of your municipality / ARGE and their written agreement to paying the future expenses
• Ask your ARGE / municipality about amounts of appropriate rent

Last update: 12/16/2009