What to Do If You Can’t Pay Rent

The rent is due, and it looks like you will be unable to pay it. Well, you’re not alone. About 15% of American renters, or roughly 8.4 million people, are behind on rent. Approximately 3.5 million renters worry they’ll get evicted during the next several months due to missed rent. But it doesn’t have to come to that. We’ll walk you through the steps you should take if you’re not going to make rent this month.

Can’t pay rent this month? Here are the steps to take:

1. Review your lease agreement

The first thing you should do when you find yourself in a situation where you cannot pay rent on time is review your signed lease agreement. The lease document will detail what the penalties are for late payment, and what steps to take to notify your landlord or property manager. Most standard lease agreements will detail a grace period where late payment will be accepted, after which a late payment fee or penalty will likely be imposed.

2. Get in touch early

If you know a few days before the rent is due that you won’t be able to make the payment, reach out to your property manager as soon as possible. If you know a few weeks in advance, that’s even better. The more notice you give, the more time you’ll have to discuss some options together.

3. Suggest a payment plan

If you can’t make the entire rental payment, suggest a repayment plan you can afford. Property owners are often more understanding than you might think. Work together to create a long-term solution that mutually benefits both of you. Suggest an installment plan where you’d make smaller, incremental payments over a few months or more.

4. Negotiate lower rent

You could also try to negotiate a reduced rent for the next few months. Write a letter to your property owner referencing your financial situation and explaining how this lower rent payment will be more manageable for you. You could suggest a reduced rent over the next three months and a repayment plan for the remaining amount over a specific time. Agreeing to lower payments plus the installment plan shows the property owner you’re committed to paying them as best you can.

5. Get any agreement in writing

If you agree with your property manager about the best way to proceed, get the terms in writing and sign the document. You can refer back to your agreement to clarify its terms. If there’s a disagreement, you can also use the document as evidence of your arrangement.

6. Manage your other expenses

Juggling your other expenses can free up money for rent. For example, you might cut down on luxuries like eating out or cancel your subscription services for a while. You could defer your student loans or apply for your credit card company’s hardship program for reduced payments.

7. Consider a loan

Loans can be a great option if your financial troubles are short-term. Loans from family members or friends are ideal because they are often interest-free. You could also get a loan from a financial institution. Avoid payday loans, as they come with incredibly steep interest charges. Make sure you can make the repayments before agreeing to any loan.

Tips for talking to your property manager about a late rent payment

Talking to your property manager about a late rental payment might seem intimidating, but there’s no need to stress. Keep these tips in mind when you’re talking finances:

• Choose the communication method that’s most comfortable for you: You can have a face-to-face conversation, phone your property manager, or write a letter. Choosing the medium you like best will help you express yourself more confidently.
• Be honest: If you feel comfortable, share your financial challenges so the property manager can understand your situation better. You can mention any financial information you think is relevant, including your savings, income adjustments, unemployment benefits, and new sources of income.
• Be respectful: Treat the property owner with respect you’d show your boss. Your attitude may encourage the property manager to offer flexibility and ensure your relationship stays strong.
• Produce supporting documents: Supporting documents can prove your financial hardship with figures. For example, you might present a termination letter from your employer or a bank statement.

Resources for rent assistance

Learn more about the government’s rental assistance resources if you can’t make something work with your property manager. Discover plenty of nonprofit organizations that may be able to offer a helping hand:

• The U.S. Department of Housing and Urban Development provides rental assistance through its Housing Choice Voucher Program.
• The USDA Rural Development Program helps people in rural areas with accommodation expenses.
• National Low Income Housing Coalition lists information about local rental assistance programs.
• Catholic Charities USA provides short-term financial assistance with overdue bills, such as rent.
• The Salvation Army offers one-time support to help you pay bills, including rent.
• Modest Needs offers Self-Sufficiency Grants of up to $1,000.

What not to do if you can’t pay rent

We’ve given you plenty of strategies for handling yourself if you can’t pay rent, but plenty of renters still make mistakes. Learn what you don’t want to do if you can’t pay your rent:

Don’t procrastinate

The longer you procrastinate telling your property manager about your financial situation, the less sympathy you’ll receive. Your property manager knows it is unlikely your financial problems happened on the day the rent is due. Procrastinating shows you don’t respect your property manager enough to have an honest conversation when you know you’d miss a payment.

Don’t write a check you know will bounce

Writing a check that will bounce might buy you a bit of time, but it will cost you. Your property manager may not renew your lease later and pass on any bounced check fees and late payment penalties.

Don’t lie about your circumstances

If you mismanaged your money, it could be tempting to spin a more sympathetic story. It might sound better to say you lost your job or had unexpected medical bills, but you might get caught in the lie. Some property owners want to see evidence before they’re flexible with rental payments. They may also investigate your claims on social media. Lying can undermine the trust that your property owner has in you and jeopardize your relationship.

FAQ: What to do if you can’t pay rent

Struggling to pay rent can be stressful, but you have plenty of options. Try our strategies, and you can get through your rough financial spot while keeping your property owner on your side.