Can’t Pay Rent? 7 Steps to Take

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The sooner you act, the better. 

We’ve all watched prices rise over the last few years, and rent costs were definitely part of that general trend. Thankfully, the median rent cost has started to ease. After peaking at $2,053 in summer 2022, the amount has now dropped a bit, to $1,978. Of course, rental costs vary depending on where you live.

However, recent data shows that the average rent-to-income ratio for Americans reached 30% at the end of 2022, and this isn’t good news at all. Ideally, your housing costs should come to no more than 30% of your gross income. Otherwise you risk falling behind on other bills and not being able to save for emergencies and goals like retirement. If you’re struggling to afford your rent alongside all your other bills, here’s what you should do.

1. Check your lease (and talk to your landlord)

First things first: Definitely find your copy of the lease and give it a good read-through, because knowledge is power. There’s likely information in the lease about whether you get a grace period to pay your rent (such as five days past your normal due date), and if you’re late, how much of a late fee will be tacked on. For example, I’ve had rentals where I would have been charged $25 for each day rent was late.

Now give your landlord or property manager a call or shoot them an email to explain your situation. If you’re generally a reliable tenant and this is the first time you’ve come up short for rent, they might be willing to cut you a break and give you more time to get the cash together. If you rent from a corporation rather than an individual, you will probably have less success negotiating for a longer grace period, unfortunately.

2. Contact local agencies for help

A lot of rental assistance programs opened in the early days of the COVID-19 pandemic, and unfortunately, many of them have since been shuttered. But head on over to the National Low Income Housing Coalition’s site and check out the list of state and local rental assistance programs. You may find one in your area. You can also call 211 to reach the United Way and find local nonprofits and religious groups that may be able to help.

3. Ask family and friends

It’s not easy to ask others for financial help, but you may have more resources at your disposal than you realize. If you feel comfortable doing so, see if a friend or other loved one might be willing to spot you some cash for rent this month. Don’t take advantage of this generosity by making them chase you down to be repaid. Write up an agreement stating how much you owe, and include a plan and a timeline for when you’ll pay them back.

4. Tap other sources of money

Ideally, you shouldn’t withdraw money from say, a retirement account, for any purpose other than being paid in retirement (as you’ll incur a penalty to do so). But if you’re behind on your rent and potentially facing eviction, keeping a roof over your head is more important. You might also see if there’s a way to put your rent payment on a credit card (again, not ideal). You’ll incur a fee from a third-party service to do so, and it’s important to prioritize getting your finances in order so you can pay off the charge sooner rather than later and minimize the interest your balance will accrue.

5. Pick up a side hustle

Don’t underestimate how much good having a second source of income can be for your finances. If you get a side hustle, not only might you have an easier time affording rent and other bills, but you can pay off debt, save for emergencies, and sleep a lot better at night for having fewer money worries. It doesn’t have to be a big undertaking, either. Even delivering for DoorDash a few evenings a week might give you a nice cushion.

6. Share your costs, if possible

If you live paycheck to paycheck and always feel as if you’re one small emergency away from being unable to make rent, consider sharing your space and costs with a roommate, if possible. If you live in a small one-bedroom apartment, this likely isn’t feasible, but if you have multiple bedrooms and are allowed to add someone to your lease, consider it.

7. Know your legal rights, if all else fails

While you figure out how to cover rental costs, it’s also a good idea to learn about tenant rights in your state of residence, just in case. The U.S. Department of Housing and Urban Development (HUD) maintains a webpage with tenant rights information by state.

If you’re short on money for rent this month, don’t panic. Take a deep breath and run through these steps to give yourself the best shot at making that payment.

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