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What to Do If You Can’t Afford Rent

If you’re unsure whether you can make your next rent payment, you’re not alone. More than 22 million households are spending more than 30% of their income on rent and utilities, and a record-high 12.1 million spend at least 50%, according to a Joint Center for Housing Studies of Harvard University report.

If paying your rent stretches your finances to their breaking point, there are things you can do. Here are six steps to take if you can’t afford rent.

1. Review Your Lease

If you’re struggling to come up with your next rent payment, the first thing you should do is review your lease. It will have information about whether there is a grace period for making late payments and if your landlord charges late fees. Your lease also includes information about whether you can sublet your apartment or invite a roommate to move in to get some financial relief, plus how much it would cost to break the lease if you decide that’s your best option. Understanding the terms can help you decide what to do next.

2. Contact Your Landlord

If you’re unable to pay your rent, let your landlord know before the payment is due. They may be willing to work with you to develop a repayment plan. It’s best to give them as much notice as possible. Don’t wait until after you miss a payment to talk with them.

3. Seek Emergency Assistance

It can be scary to realize you may not be able to pay your bills, but you don’t have to go through it alone. Many state, local, and tribal organizations have resources to help renters in a tight spot. Check with your local or state government offices or search online to see what’s available in your area. You can also contact local nonprofits and community programs directly. Programs and services vary by location, but they may be worth checking out.

If you’re unsure where to begin your search, calling 211 can help. This national organization was designated by the Federal Communications Commission as a resource that connects callers to local sources that may be able to provide social services, including rent assistance. They can also offer resources if you’re struggling to access other essentials like food, utilities, or health care.

4. Know Your Rights

If you’re worried about losing your home, it’s crucial that you understand the laws in your state. Your landlord must adhere to all applicable laws during the eviction process, and you may have certain protections, depending on where you live. The Pew Charitable Trusts and Stanford Law School have created a searchable database where you can learn more about your area’s housing, eviction, and rent laws. If you need help navigating the legal landscape, a housing counselor can help educate you on your rights and potential financial assistance for which you may be eligible. The Department of Housing and Urban Development lists its approved housing resources on its website.

5. Consider Moving in With Friends or Family

If you won’t be able to catch up on your rent payments in a month or two, you may need to make alternate living arrangements. Moving in with a friend or family member may not be your ideal living situation, but remember that it’s temporary.

Friends and family may be willing to cut you a break on rent and other expenses while you get back on your feet. Sharing the cost of rent, utilities, and other living expenses can free up room in your budget to help you avoid missing other payments. Staying current on your other financial obligations can help keep your credit in good standing.

6. Find a Lower-Cost Place to Live

If moving in with friends and family isn’t an option, consider moving to a smaller unit or less expensive area where rent is more affordable. You may also want to look into long-term government assistance, such as government-subsidized public housing or the Housing Choice Voucher Program.

If you’re eligible for the Housing Choice Voucher Program, you can use your voucher for any housing that meets the program’s guidelines. The landlord receives a partial payment through the program, and you are responsible for paying the difference.

Frequently Asked Questions

What Happens if You Don’t Pay Rent?

If you don’t pay your rent, you may face late fees, damage to your credit score, and potential eviction. It’s important to communicate with your landlord and seek assistance as soon as possible.

Can You Pay Rent With a Credit Card?

Some landlords may allow you to pay rent with a credit card, but this can come with additional fees. It’s important to check with your landlord and understand any associated costs before using this option.

Can Missing Rent Payments Affect Credit?

Yes, missing rent payments can negatively impact your credit score, especially if your landlord reports the missed payments to credit bureaus. It’s crucial to stay current on your rent to maintain good credit.

Rethinking Your Finances

If you’re struggling to pay your rent, help is available. However, if your inability to pay isn’t the result of a short-term setback, such as a job loss, you may need to rethink your overall financial situation. If you need help, a nonprofit credit counselor can take a holistic approach to review your finances and suggest changes you can make to improve your financial footing.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. Our team is here to help you find the best solutions for your financial situation.

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