Hi,
the crucial factor for you will be whether your renting out of apartment can be regarded as leisure employment (will give deduction in unemployment benefits), or private asset management (will not give deduction in Unemployment benefits).
If it will be regarded as leisure employment, there will be an deduction in the amount your receive, but you can still be considered as available for the labour market, and therefore be eligible for receiving Unemployment benefits.The income will be converted to some hours, and for these hours you will not receive dagpenge.
If you renting business is more comprehensive, for instance includes more properties, and personal effort/work from you, then it will be considered as business activity. If it is regarded as business activity the starting point is that you can't receive Unemployment benefits at the same time. However, if you have performed your renting business together with being employed as a wage-earner, you can continue with this renting business for up to 30 weeks, and receive supplementary benefits in these weeks. If on the other hand your business renting is the only you have been doing in the last 6 months up to the time where you apply for Unemployment benefits, then it will be considered as your "main job/employment", and in this case you must close/sell the business activity, before you can receive Unemployment benefits. However income from business activity can be used to earn rights to receive Unemployment benefits, i.e. fulfill the income-requirement (as normal salary does).
Income from an activity regarded as leisure employment or asset management can't be used to earn rights to Unemployment benefits, i.e. fulfill the income-requirement.
Wheather it can be regarded as private asset management (and therefor not result in deductions in dagpenge), or leisure employment (give deductions, but you are still eligible for receiving benefits), must be decided according to the relevant rules, and here we have only legislation in danish, however income from renting can be found in these two regulations:
- "BEK nr 1184 af 26/09/2018" §22, which covers the income types that does NOT result in deductions. No. 11 is about income from renting, and the text in danish is: "11) Forpagtningsafgift og indtægt ved udlejning, der ikke kan betragtes som erhvervsmæssig, og overskud af egen bolig." Here it says that if the renting can't be considered as a business activity then it will not result in deductions. So pure private renting of a room in your house/apartment or that like, will not result in deductions. However also renting that may seem more like business activity can be performed while at the same time being eligibe for Unemployment benefits. This is covered in the next 2 rules, covering asset management or leisure management:
- "BEK nr 1182 af 26/09/2018" §3 is about activities that are considered as asset management and therefore does not result in deduction in Unemployment benefits. No. 1 is about income from renting, and the text in danish is: "1) har lejeindtægter fra udlejning af fast ejendom, hvis medlemmet ikke har haft personligt arbejde med udlejningen". Here is says, that income from renting can be regarded as asset management, if the person/owner do not perform personal work in conjunction with the renting.
- "BEK nr 1182 af 26/09/2018" §5 is about activities that are considered as leisure employment and therefore will result in deduction in Unemployment benefits. No. 2 is about income from renting, and the text in danish is: "2) Drift af én udlejningsejendom med op til 10 lejemål. Personen må kun i mindre omfang personligt udføre administration, små reparationer og viceværtfunktioner". Here it says, that operation of one rental property with up to 10 rentals can be regraded as leisure employment. The person may only, to a lesser extent, personally perform administration, small repairs and caretaker functions.
A renting activity can't be regarded as either asset management nor leisure employment, if there is personal work in some extent involved from the owner. In the guidance to the above mentioned regulation BEK nr 1182 af 26/09/2018, it is stated:
"Hence, rental can only be considered as asset management, provided that it does not involve a personal effort by the owner.
If, on the other hand, the owner manages administration etc. or
initiating conversion and subdivision of a smaller number of properties / leases, there will be an business activity.
However, the owner are allowed to have personal work regarding the property, but only in a very limited scope of a maximum of 5 hours per month."
Type of property
Asset management (not deduction in Unemployment benefits): The cases where it will normally be allowed to have income from renting while receiving Unemployment benefits at the same time, is where you rent out a room in your own house/apartment, rent out one of two appartments in a two-family house, and you stay in the other your self, or renting of summerhouse.
Leisure employment (will give deduction in Unemployment benefits), but you can still be considered as available for the labour market, and therefore be eligible for receiving Unemployment benefits: operation of one rental property with up to 10 rentals.
Business activity: Can't be performed while you receive Unemployment benefits. Larger scale renting of several properties or one large property (more than 10 rentals), more personal work involved etc. The only way you can receive benefits is if the business renting can be approved as secondary job for you (requires that you have had some income registered from paid job in 5 out of the last 6 months before applying for Unemployment benefits). If it is approved as secondary job for you, you can receive supplementary benefits for up to 30 weeks.
Hope this helps. You are welcome to comment here in this Q&A forum.
Best regards,
Anders, www.a-kasser.dk