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Renter's Guide

6 Steps to Take When You Can't Afford Rent

1. Assess Your Situation

Sometimes hardships come up unexpectedly. It can be hard to prepare ahead of time. 
 

Review your options to see how you can make rent the first thing you pay.

Contact your lender to get temporary payment deferment for vehicle/personal loans. Explore a payment deferment for your student loans. Consider strategic non-payment of debts/bills (credit cards, etc.). A GreenPath Financial Wellness Expert may be able to help you understand your budget and determine which bills are the best candidate.
 

Consider how much you can pay.

Plan what you realistically can pay by the due date, and a possible plan to catch up what you are short. Plan for any late fees if they are a part of your lease agreement. Can you afford a payment plan to catch up past due rent? Are you expecting a lump sum that will catch you up? Understand this before speaking with your landlord.
 

Figure out if this is a temporary or permanent change. 

Are the reasons that prevented you from making the full payment temporary or long-term? What actions might you need to resolve this issue (like finding more income or cutting expenses)?

2. Contact Your Landlord ASAP

At the onset of financial hardship, many people experience difficulties talking about the nature of their struggles. This is totally understandable as finances are often very private. With that in mind, it may actually be very helpful to contact your landlord or property manager ASAP. Keeping an open line of communication may allow for opportunities to work with your landlord towards a solution.
 

Solutions May Include:

  • Proposing to defer the unpaid portion of rent to be paid later at a specific date (including details of when and how will be important)
  • Proposing you work off some/all of the unpaid rent – if you have skills, they may allow you to do landscape, repair work etc. in lieu of some of the rent.
  • Proposing a repayment plan for the unpaid portion over a period of time
  • Asking for an adjustment of the lease terms based upon a recent hardship

3. Keep Records of Communications

When dealing with many financial hardship, record keeping may be hard to prioritize as you try to keep things afloat. There is value in having detailed records of interactions with your landlord. Written records can help to clarify agreements and any disputes that may arise in the future.
Include these details:
  • Copies of correspondence
  • Dates
  • Names
  • Times
  • Summaries of what was discussed

4. Apply for Assistance

Consider contacting organizations that provide resources and help for renters.

US Housing & Urban Development

The Department of Housing and Urban Development (HUD) is responsible for national policy and programs that address America's housing needs, that improve and develop the Nation's communities, and enforce fair housing laws.
 

National Multifamily Housing Counsel

With the industry’s most prominent and creative leaders at the helm, NMHC provides a forum for insight, advocacy and action that enable both members and the communities they build to thrive.
 

Just Shelter

Just Shelter was founded to raise awareness of the human cost of the lack of affordable housing in America and to amplify the work of community organizations working to preserve affordable housing, prevent eviction, and reduce family homelessness.
 

Rent Assistance

Many non-governmental and non-profit agencies will assist you with emergency rental funds so you can stay in the rental that you already live in. Most of the time, funds are paid directly to the landlord. Be prepared to provide proof of residence and financial need.
 

United Way

United Way advances the common good in communities across the world. Their focus is on education, income and health—the building blocks for a good quality of life.
 

CFPB (Consumer Financial Protection Bureau)

State and local organizations are distributing federal rental and utility assistance in their communities. The CFPB offers a search tool to locate available services in your area.

5. Understand Your Options

The unfortunate reality is that an immediate or easy solution may not always be available. But there may be other options to explore. HUD.gov has extensive laws and regulations on fair housing issues. If you feel that your housing issues are a product of unfair practices or discrimination, you may be able to start here.

Legal Services Corporation is an independent non-profit established by Congress to provide financial support for low income Americans. Search by your zip code to locate aid in your local area.

6. Prepare for Action

Rental housing issues can often come with a lot of uncertainty, even if you have been able to work out a solution. If you have been able to work out a solution, great! Try to make sure you are making this solution your top financial priority. Again, a GreenPath Financial Wellness Expert can help you create a budget to keep you on track. Now that you’ve got a budget in place, try to closely track spending and expenses and keep a detailed budget. There are budgeting apps for mobile devices that can help with this. Consider asking your counselor for a recommendation. We know that times are especially tough, but if you are able to find an opportunity to bring in additional income, that could be really helpful.
 

If you eventually will be or have been evicted, consider the following:

If you receive eviction notice, legal aid prepares you for court and may offer landlord/tenant mediation to work out arrangements without going to court. If you have been evicted through court, court paperwork will typically specify a vacate date. In some cases, finding new housing may be the only option. There are many local agencies to help you find affordable housing. Some of them may have long waitlists as noted earlier.