Security Deposit from the Jobcenter: Loan, Assurance, and Repayment

A new apartment is in sight, the landlord wants 1,260 € as a deposit — and you do not have a cent saved up. The Jobcenter can cover this deposit, but almost always only as a loan. For that to work, you must first file an application and obtain an assurance (Zusicherung). Many fail at exactly this point — and the Jobcenter rejects, offsets too much, or overlooks hardship cases.

The most important points in 30 seconds

• A security deposit (Kaution) can be covered by the Jobcenter as a loan under § 22 Abs. 6 SGB II — prior assurance is mandatory.
• Without an assurance before the new rental contract is signed, many Jobcenters refuse to cover it.
• Repayment is made by offset against the standard benefit (Regelbedarf) — maximum 10% per month (§ 42a Abs. 2 SGB II).
• 10% of the standard benefit 2025 for single persons is 56.30 €. A deposit of 1,260 € is thus paid off in about 22 months.
• Housing cooperative shares (Genossenschaftsanteile), if mandatory for moving in, are covered under the same rules as a loan.

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Why the Jobcenter is so sensitive about the security deposit

A security deposit (Kaution) (the sum of money the landlord keeps as collateral until you move out) is not a recurring need like rent or electricity. It is due once, it is high, and it comes back later — at least if the apartment is handed over undamaged upon moving out. That is exactly why the Jobcenter almost never covers the deposit as a grant, but under § 22 Abs. 6 SGB II as a loan (Darlehen). You get the money but must pay it back.

A concrete example: Ms. P. moves into a new apartment. The basic rent is 420 €. The landlord demands three net basic rents as a deposit, i.e. 3 × 420 € = 1,260 €. The Jobcenter approves the loan and pays the 1,260 € directly to the landlord. For repayment it offsets 56.30 € per month (10% of the standard benefit of 563 €) against Ms. P.'s ongoing benefit payment. After about 22 months the loan is paid off.

The tricky point: the law requires an assurance (Zusicherung) — meaning the prior written commitment of the Jobcenter to cover the move and the deposit, before you sign the rental contract. Those who sign first and only then go to the Jobcenter often end up empty-handed. This is where the most frequent rejections occur.

Your rights in detail

1. Right to have the deposit covered as a loan with prior assurance (§ 22 Abs. 6 SGB II). If the move is necessary and the Jobcenter has given assurance, it shall cover the deposit. "Shall" means: as a rule it must — rejection is only permitted in justified exceptional cases.

2. Right to assurance if the move is required (§ 22 Abs. 4 SGB II). The move is necessary e.g. in case of a cost reduction request, unreasonable apartment, family growth, imminent termination, or taking up work at another location. The Jobcenter may not refuse the assurance across the board.

3. Limit of offset to 10% of the standard benefit (§ 42a Abs. 2 SGB II). For a loan for deposit or cooperative shares, monthly repayment may be at most 10% of the applicable standard benefit. In 2025 that is 56.30 € for single persons. If the Jobcenter deducts more, the decision is unlawful.

4. Right to discretionary review in hardship cases. Under particular strain — chronic illness, small children, ongoing debt, mental illness — the Jobcenter must examine whether the 10% offset is unreasonable in the individual case and whether it must be temporarily suspended or reduced. A rigid "10% always" without individual review is a discretionary error ([URTEIL-REFERENZ]).

5. Return of the deposit to the Jobcenter on moving out. If the landlord ultimately pays the deposit back to you, it is as a rule offset against the open loan balance. As a result, the loan is often already paid off before the offset has run through in full.

6. Right to object to the decision (§ 84 SGG). Both against the rejection of the deposit coverage and against an offset decision you can file a written objection within one month.

Current case law

The Federal Social Court (Bundessozialgericht, BSG) has repeatedly emphasized that the Jobcenter must examine the necessity of a move generously — and if the move is necessary, the deposit is also to be covered as an annex benefit. The scope of discretion is then clearly narrowed ([URTEIL-REFERENZ]).

On offset under § 42a SGB II there are now several decisions clarifying: the 10% limit is an upper limit, not an automatic rule. The Jobcenter must always examine whether a lower rate or a temporary suspension is called for in the specific case — for example if the remaining standard benefit would otherwise fall below subsistence level ([URTEIL-REFERENZ]).

For housing cooperative shares (Genossenschaftsanteile) the prevailing case law holds: if they are a mandatory prerequisite for moving into the cooperative apartment, they are covered like a deposit as a loan under § 22 Abs. 6 SGB II. Voluntarily increased shares or purely return-oriented deposits, however, are not ([URTEIL-REFERENZ]).

How to proceed now

1. Apply for assurance before signing the contract. Go to the Jobcenter with the listing for the new apartment, the draft rental contract, and a reason for the move. Have the assurance given to you in writing — a phone call is not legally sufficient.

2. List deposit and cooperative shares separately. State the exact amounts in the application. Example: "Deposit 1,260 € (three net basic rents at 420 € each), cooperative shares 600 € (three shares at 200 € each as prerequisite for moving in)." This allows the Jobcenter to examine and approve both.

3. Read the loan agreement carefully. The Jobcenter will present you with a form — with the loan amount, repayment rate, and start of the offset. Check the rate in particular: at most 10% of the standard benefit (in 2025 thus 56.30 € for single persons). Higher rates can be challenged.

4. Choose direct payment to the landlord. Have the sum transferred directly to the landlord. This avoids the money being accidentally booked as income on your checking account.

5. Document hardship. If a monthly deduction of 56.30 € is unreasonable for you — due to illness, debt, small children, ongoing therapy — attach medical certificates and proof and formally apply for a lower offset rate.

6. Have the decision reviewed. Errors often creep in with deposits and offsets — wrong rate, missing discretionary review, rejection despite a necessary move. An outside look almost always pays off.

Avoiding typical mistakes

• Do not sign the rental contract without an assurance. That is the classic: Mr. V. finds an apartment, signs out of fear of losing it, and only then goes to the Jobcenter. The Jobcenter rejects the deposit because no prior assurance was issued. The prospect of success drops considerably — not to zero, but the argument becomes uphill.

• Do not accept more than 10% offset. If the decision lists a repayment rate of 80 € or 100 € per month, that is too high for a single person. The limit is 56.30 € (10% of 563 €). File an objection.

• Do not fail to actively present hardship. The Jobcenter does not examine discretion in detail on its own. If you are ill, heavily indebted, or a single parent with small children, you must raise this expressly — with certificates, evidence, a brief description of the situation.

• Do not confuse the deposit with the moving flat rate. Deposit, moving costs (truck, helpers, renovation), and double rent are three separate benefits with their own applications. A single lump application is not enough — each item must be itemized and justified.

Frequently asked questions

Can I still get the deposit if I have already signed the rental contract?

Difficult, but not hopeless. Without prior assurance, the Jobcenter is no longer obliged to cover the deposit — but it can, at its discretion. If the move was demonstrably required (cost reduction, termination, taking up work) and you face homelessness without the deposit, you have good arguments. A timely objection is mandatory.

How high may the offset against the standard benefit be?

At most 10% of the applicable standard benefit (Regelbedarf) (§ 42a Abs. 2 SGB II). For single persons in 2025 that is 56.30 €, for couples 50.60 € each, for children proportionally. With several loans at the same time, the sum of offsets is capped at 10% — the Jobcenter may therefore not add them up.

Are housing cooperative shares covered the same way as a deposit?

Yes, if the shares are a mandatory prerequisite for moving in. Then, according to prevailing case law, they count as an annex to the deposit and are covered as a loan under § 22 Abs. 6 SGB II. On moving out they are paid back and the loan is settled — often nothing is left to offset.

What happens if I move out before the loan is paid off?

The deposit (or cooperative share) flows back to the Jobcenter on moving out, as a rule, because you assigned the claim in advance. This is used to settle the remaining loan. If a remainder stays open, the offset continues normally. If the returned deposit is higher than the open loan balance, you receive the difference.

The Jobcenter has rejected the deposit. Is an objection worthwhile?

In many cases yes. The most frequent grounds for rejection are "no assurance" or "move not required" — both can be challenged. If the move is at least plausibly justified (health, family, work, cost reduction) and the deposit is concretely itemized, chances are good. The decisive point is the one-month deadline: the objection must be filed in writing and on time.

Have your decision reviewed now

Whether rejection of the deposit, offset too high, or forgotten discretionary review in hardship cases — with the security deposit as a Jobcenter loan, errors almost always arise. Ms. I. found an offset of 85 € instead of 56.30 € in her decision. Mr. V. received no deposit commitment despite a cost reduction request. Both cases were challengeable. Send us your decision — we will take a look.

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