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Sometimes, whether due to an emergency or an unexpectedly large expense, you may be short on money to pay your rent. While this can be a stressful situation, it’s important to take a deep breath, step back and explore your options.
Keep reading for some steps to consider when you can’t afford to pay your rent.
Talk to your landlord
It’s often a good idea to communicate with your landlord. While it could feel scary to admit to your landlord that you’re having financial challenges, it can be helpful to be upfront when pay your rent on time.
See if your landlord is willing to negotiate a temporary lower monthly payment, accept a portion of what you owe or waive your late fees — every little bit helps. If you’re able to agree on a payment plan, make sure you create an addendum to your lease and clearly spell out the new or temporary terms in writing.
Consider a loan
If you’re in a tight spot but know it’s temporary, a rent loan could help you pay the bills until your situation improves. A rent loan is a personal loan from a bank, credit union or online lender that you take out to pay for living expenses. Personal loans offer fixed terms and predictable monthly payments. Knowing what you owe each month can help you budget for repayment while you get back on your feet.
Take a hard look at your budget
When you’re struggling to pay your rent, it’s time to take a hard look at your budget. Are there any areas where you could reallocate money toward your rent? Do you have enough in savings, and does it make sense to use some of that money to cover what you owe?
Even if you can’t find the extra money in your budget now, carefully reviewing your financial habits could help you reprioritize where your money is going in the long term and set you up for greater financial stability.
One popular approach to budgeting is the 50-30-20 method, where 50% of your income goes toward needs (rent, utilities and debt payments), 30% toward wants (dining out and streaming services) and 20% toward savings. Adjust these percentages so they make the most sense for you. If you’re struggling to make rent, you may need to cut back on your wants or savings to keep a roof over your head until your circumstances improve.
Look for extra work
Taking on extra work could also get you through a difficult financial time. Look for opportunities to use your existing skills in a side gig or part-time job. Ask around and see if anyone you know is looking for a temporary hire, or advertise your services online and around your neighborhood. Administrative work, manual labor or house cleaning are all options. If you have limited free time, you could also look into food delivery or dog walking on the weekends or a few hours per week. Get creative and think outside the box.
Ask for help
Friends and family
Asking your loved ones for help can be difficult, but it could be a worthwhile option if it gets you through a tough time. If you’re able to borrow money from a close friend or family member, make sure you agree on the terms of the loan. Be sure to include the exact amount you owe, how you’ll repay the money and the repayment timeline. Putting the terms of the agreement in writing is key so there are no miscommunications or other negative impacts to your relationship.
Community support
Rental assistance programs may be available in your area. You could try calling 211 and asking about community resources or city and state rent support programs. You might also look into state rules on evictions and other tenant protections if you’re worried about losing your home.
Don’t give up — solutions are available
Not being able to pay rent can be an overwhelming situation — not only is it difficult to admit that you don’t have the money, but it’s incredibly stressful to think about potentially having to move or face homelessness. As soon as you realize you’re in a difficult spot, communicate with your landlord, take a hard look at your budget, consider taking on extra work and reach out to loved ones and your broader community for support.
Be proactive, get creative and don’t lose hope. Everyone needs help at one time or another.
Disclaimer: The information provided in this article is for general informational and educational purposes only and should not be considered financial, legal, or professional advice. The content does not necessarily reflect the views of the publisher or its affiliates. Readers are encouraged to consult with a qualified financial advisor, legal professional, or housing counselor regarding their specific financial circumstances and options. While every effort has been made to ensure the accuracy of the information, no guarantees are made regarding completeness, reliability, or suitability.
