What to Do If You Can’t Pay Your Rent This Month
Despite the seeming infinity, March 2020 is almost over. It’s the first of the month again, and a lot has changed since the last time you paid your rent. We practice physical distancing, the government has passed a large bill to stimulate the economy , and the coronavirus has driven record high unemployment rates .
If you’re worried about being able to pay your rent on time this month, we will. And while many states and cities have imposed moratoriums on evictions , that doesn’t mean the eviction process is inevitable if you stop paying your rent.
If you need help keeping afloat right now – and want to stay on the landlord’s side for as long as possible (after all, he probably has a mortgage too) – here are some strategies to get your rent paid as soon as possible. …
Move some money
Some reallocation of your budget can help you bide your time while you wait for your government incentive check or unemployment benefits.
Keith Howerton, CFP and Senior Finance Coach at SmartPath , noted that a six-month delay in federal student loan payments could free up some of the money you need for your basic living expenses. You can also cash out credit card points to pay for goods such as groceries or gas, and then transfer that money towards rent. Another variant? Temporarily reduce your pension contributions so you can have access to cash until your income stabilizes, Hauerton said.
Don’t forget to call your utility provider as well : you can skip your electricity, gas, or water bills for months without the risk of shutting down your services, although you may have to get those balances back after a pandemic.
Ask for help locally
If you are unsure of where to look for rental assistance in your area, you can start by visiting the website of your local newspaper or calling your local housing authority for advice. You can also contact Salvation Army social services, the American Red Cross, or Catholic charities.
“Community resources are available, but it depends on where you live, what rights or assistance you have as a tenant [right now],” said attorney Leslie Thane . “For example, Orange County in Florida provides residents with a one-time rent if they quit due to the pandemic. In New York, controller Scott Stringer is asking concerned residents to contact his office to contact local agencies offering assistance. ”
Once you’ve figured out how you could adjust your own finances and where you could get help in your area, it’s time to speak with your landlord.
Ask your homeowner for help
If paying your full rent, or even part of it, is out of the question, ask your landlord or property manager what options they can provide.
“I would not offer something right away,” warned lawyer Leslie Thane. “See what the landlord is willing to do, and if you need more, ask.”
Marina Vamonde, real estate investor and founder of PropertyCashin.com , said there is no one-size-fits-all solution even for residents of different properties who have the same landlord. “Each tenant is faced with different circumstances that need to be addressed,” she said.
This helps keep the landlord informed of the steps you have already taken or are planning to take to catch up and stay on top of rent. If you can pay off the balance as soon as your Unemployment Insurance checks start coming in, take a look. If you asked for help through a local organization, please indicate it. If you can pay your rent this month but are worried that your hours will be cut before the next month’s rent is due, let your landlord know about the situation sooner rather than later.
Vaamonde said her team was able to offer referrals to some tenants to participate in government and nonprofit rental assistance programs. “Knowing that some of our tenants were being laid off, we decided that on a case-by-case basis, we would defer payment of some or all of the amount until they could get help from the programs available,” she explained.
If your landlord uses an online payment system, they can make changes to your rental schedule. Colin Crook , who lives in California and rents a home in Portland, Oregon, uses Cozy to manage his tenants. He said he could disable or delay late fees, provide tenants with credit for future rent, and enable a payment plan that allows tenants to pay in weekly installments.
Even if your landlord uses older methods, they can split your rent in installments, waive late payment fees, or make an exception and accept credit card payments. Just make sure you receive all suggestions in writing.