What if I Can’t Pay My Rent?

It's a question that's probably passed through all renters' heads at some point: What if I can't pay my rent? It's natural to be concerned about this, but if the situation arises, the important thing is not to panic. 

There are strategies you can try to stay in your rental and better manage your ongoing expenses.

Reasons for Not Being Able to Pay Rent

Here are some common financial setbacks that can make it difficult to pay ‌rent:

• Job loss

• Unforeseen expenses

• Unmanageable debt payments

• Unexpected move

Regardless of the reason for not being able to pay your rent, the process for resolving this issue remains the same.

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What to Do When You Can't Pay Your Rent

If you're not able to pay your rent, take action that may allow you to remain in your rental for the time being. 

Start here.

Review your lease

Read your lease terms carefully. Review what it says about when rent payments are due, whether there's a grace period, and when you’ll be subject to eviction. If there's any confusion about what you find there, talk to your landlord for clarification.

Know your rights

Regardless of what your lease says, renters have certain legal rights. These rights vary from state to state, and there may even be laws specific to your town or city about when, why, and how a landlord may evict a tenant. 

Knowing what rights apply to you lets you figure out how much time you have to solve the problem. It also tells you what recourse you might have before the landlord can evict you. 

Arm yourself with the important facts before you approach your landlord. This will help you know if they are violating your rights. If so, you may need to file a legal complaint against the landlord.

Talk to your landlord

Check with your landlord to see if you can work something out. If you've been a good tenant and have kept up with rent previously, they may give you extra time to pay, or waive any late fees. This is more likely if you can show that the reason you can't pay your rent is temporary. If possible, give the landlord a clear idea of when they can expect payment, and stick to that.

Assuming you and your landlord reach an understanding, try to get them to put it in writing, and have both of you sign the document. Ensure each person gets a copy so you can both refer back to it to make sure you're sticking to your side of the bargain.

Finding a Financial Solution if You Cannot Pay Your Rent

The best way to handle an inability to pay your rent depends on why you're not able to pay, and how long you expect this to be an issue. 

Here are some solutions you can try.

Evaluate your budget

Sometimes, it's possible to free up cash in your budget by tracking your purchases over the last few months and identifying areas of overspending. There are budgeting apps that can help you with this if you don't want to deal with maintaining a spreadsheet on your own. 

Seek out new employment

Whether or not job loss is the reason you're unable to pay your rent, a new job could be the answer to your problems. If you can find a better-paying job or a side hustle that lets you earn extra cash in your spare time, you may find it easier to keep up with your rent payments.

Sell unused items

If you only expect to have difficulty paying your rent for a month or two, you may be able to make up the difference by selling unused items, like old clothing or unused tools. Do some research online to see how much other people are charging for the same items to get a rough idea of pricing. Then list your item on one or more online marketplaces, or consider hosting a garage sale to make some quick cash.

Seek government assistance

There are several types of government assistance you can look into if you're struggling to pay your rent, including:

• Unemployment benefits: If job loss is the reason you can’t pay your rent, unemployment benefits could help you cover some of your bills until you're able to find another job.

• Section 8 housing: This is a voucher that can help you pay some or all of your rent for any housing that meets program requirements.

• Subsidized housing: In some cases, the government pays apartment owners to reduce the rent for tenants with low incomes.

• Programs that reduce other essential costs: Government assistance programs that help with things like food, utilities, and healthcare costs could help you free up cash to put toward your rent payments.

Most federal government assistance programs are administered at the state level, so contact your state's social services agency to apply. It can also help you connect with state and local support programs, as well as charitable organizations.

Exploring Temporary Housing Options

Sometimes, you may have to change your living situation or even leave your home entirely if you can’t pay rent. It's important to understand all the options available to you before making any moves.

Some ideas you can try:

• Subletting: If your lease allows you to, consider finding someone to sublet for a short time. This is when another person lives in the rental and pays the rent or a portion of the rent.

• Get a roommate: Adding another member of the household can ease the financial burden on you, because you can split the rent.

• Staying with friends or family: If you need a place to crash in the short term, reach out to family or friends nearby to see if you can stay with them.

• Community shelters: Community shelters can provide temporary housing, as well as food and basic hygiene resources.

Consider your options—including debt relief

Difficulties paying rent are often part of broader financial hardships. You may need some extra help figuring out how to make ends meet from month to month, or deal with debts that have piled up. 

Financial counseling can help you with key financial concepts like budgeting and payment management. Debt relief is a stronger form of financial help that could significantly reduce your debts so your finances are easier to handle going forward. 

Once you've gotten your financial situation under control, you may want to consider building an emergency fund so you're prepared in case you find yourself unable to pay rent in the future.