What Should You Do When You Can’t Pay Rent?

Your budget is in the red, you’ve already spent your paycheck, and rent is due. It’s a desperate situation, and it’s hard to make reasonable, sound decisions when you’re desperate.

If you can’t pay rent, it can indeed be a nightmare to deal with, but there are options. Before you do anything rash, consider the following.

Talk to Your Landlord

Your landlord is probably the last person you want to talk to when you can’t make rent, but a little communication can go a long way. Plus, many landlords are surprisingly accommodating.

“A one-time late payment isn’t going to disrupt most landlords,” says Mike Catania, a landlord and rental property owner. “It happens all the time and usually with a flurry of excuses so in that sense it’s like middle school: be honest and upfront and that will mitigate the problem.”

You want to give your landlord as much lead time as possible, too. The sooner you bring up the issue, the better.

“If the tenant doesn’t have a history of late payments and gives me a week or two notice that they’re going to be late, it doesn’t bother me at all,” Catania says. “It gives me ample time to move other money around to make sure all of my expenses are met.”

The problem is, most late tenants will disappear and just skip their payment without any word. This causes unnecessary headache and financial stress on both parties, Catania explains.

Casey Fleming, landlord, property manager, and author of The Loan Guide says that many landlords will work out a repayment plan with you, too.

“If you have been a good tenant otherwise he or she will probably work with you as a one-time accommodation. They may take two separate payments or even reduce the rent moving forward. Yes, for the right tenant I’ve done that.”

Fleming says you should be transparent about your situation and your plans to budget better going forward.

“Explain the situation. How did you get into this mess, and how do you expect to fix the problem? If the issue was an unexpected expense that set you back, show your landlord how you will recover now and then build up a reserve so that the next time it happens you won’t have to ask him to carry you. If the situation is that the rent is just too much for you with your current expenses, show him how you are going to rearrange your budget to have enough money every month from now on.”

Corporate landlords, on the other hand, typically stick to company policies that clearly outline their rules for dealing with late tenants. In these situations, it might be harder to negotiate or ask for help, although it’s worth trying. In any case, look at the terms of your rental agreement, whether there’s a grace period for late payments, and what the penalties are if you are indeed late. Research the laws for your state, too, to see how long you have to make a payment before your landlord is legally allowed to evict you.

Take a Look at Your Budget

Maybe you’re in a paycheck-to-paycheck cycle and you had a particularly rough month. Maybe you lost your job or had another long-term emergency. Either way, it’s time to reevaluate your budget if you haven’t done so already. Take a look at all of your expenses and see if there are any areas that can be cut to make room for next month’s rent payment. This might mean taking public transportation for a month to save on gas, brown-bagging lunch to save money on restaurants, or even picking up an odd job just to help you stay afloat.

Of course, chances are, if you’re in this situation, your budget is already stretched as thin as possible.

“If you really can’t afford it – especially if you’ve been late on the rent in the past – have an honest conversation with your landlord,” says Fleming. “You really need to move. We have made deals with tenants in this situation where we’ve let them out of a lease in exchange for them vacating by a certain date. Yes, you have to move, but at least you can arrange less expensive solutions until you get back on your feet again.”

Know Where to Get Help

If your issue is a long-term one–let’s say you lost your job–you might need to apply for assistance. Of course, there are programs available, like unemployment benefits, to help you keep your head above water in these situations, but there are lesser known options out there, too. For example:

  • Call your credit card companies and ask about hardship programs to lower your minimum monthly payments.
  • If you have a federal student loan, apply for deferment to pause your monthly payment.
  • Check out Modest Needs. They’re a charity that offers grants of up to $1,00 for workers who can’t make ends meet.
  • Check out 211.org, a website that connects you to local charities that may offer assistance.

The Department of Housing and Urban Development also offers counseling from organizations like Clearpoint to help you make the right decisions when you can’t afford rent. Don’t discount friends and family who may be willing to offer a place to stay, too, while you get back on your feet.

What to Know Before Taking Out a Loan

Again, it’s easy to make poor, impulsive decisions when you’re desperate. When many consumers can’t make ends meet, they turn to payday loans as a quick fix.

It sounds good in theory–you take out a small loan to help you stay afloat until your next payday, when you pay it back. Unfortunately, it usually doesn’t work out this way. The majority of payday loan borrowers end up revolving their loan, using another loan to pay off the original one. Interest rates can be as high as 708 percent, leading consumers into a downward spiral of massive debt. Borrowers pay $7 billion annually in payday loan fees in the U.S. alone.

Before you fall into this trap, consider other options. Many credit unions offer special loans through The National Credit Union Foundation’s REAL Solutions® program. These loans are aimed at borrowers who don’t earn much money. Some credit unions also have “signature loans,” aimed at borrowers with bad credit. While you still have to pay back the loan with interest, the terms are much better than payday loans and designed to help you improve your finances. You can find specific credit union loans in the National Consumer Law Center’s Payday Loan report (PDF).

It’s not an easy situation to fix, but it helps to know all of the options available. This way, you can make the best decision possible and keep a desperate situation from getting worse.

Kristin Wong writes and makes videos about all things money. You can find her writing at Lifehacker, NBCNews.com, and on her own personal finance blog, Brokepedia.

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26 responses to “What Should You Do When You Can’t Pay Rent?”

  • Ann Marie

    I really need help with the rent. I was late this month i going to have surgery. I really need help GOD please help me i don’t ask for much.please,please

  • Darnell

    I’m struggling to pay my rent and I have 3 kids under the age of 15yrs old and we have 1 year and 8 months lease left and Our circumstances have changed financially, we have to break our lease and don’t know what to do, I think we have to sleep in our car. My husband won’t get up and help as he has no more work, I’m still working but doesn’t cover my rent which it’s not enough and to buy food 😢.

    • Emilie Burke

      Hi Darnell! I’m really sorry about this difficult situation. There may be local organizations that can help you get over this difficult time. You should try to communicate with your landlord directly and see if they will let you out of the lease or are willing to make some arrangements with you.

  • Brent wells

    What should i do lost job bank froze my accounts and need to get money for rent and bills

    • Emilie Burke

      Hi Brent! I’m sorry about this difficult time! Do you know why the bank froze your accounts? Solving that’d be the first step in alleviating this pressure. In the mean time, I’d suggest reaching out to local organizations that might be able to help you get through the immediate problems. Hope that helps!

  • Khaled

    Hi Emilie, l am in a hardship situation. My job cut my hours and I care for my mother medical expenses she is 66 years old on a wheelchair not qualified for any assistance what so ever my budget is getting very tide I am in a apartment leas will not end until the end of November 2018 I can’t continue afford rent with my tide budget how can I get out off my lease with a minimal damage to my credit and my tide budget. Thank you

    • Emilie Burke

      Hi Khaled! I’m sorry about this difficult situation! I’d suggest understanding what resources are available to you in your local community that might be able to help get you through this difficult time. Many leases involve break clauses. Understand what your lease says about your unique situation!

  • Elizabeth

    got a 3day notice… trying to find some organizations and churches to help me with the rent… hope someone can help

    • Emilie Burke

      Hi Elizabeth! I’m really sorry about this situation. You should reach out to local organizations, as well as following the steps in this blog post. We are here if you need us!

  • my landlord is getting divorced and he wants to move in my apt. I don’t have enough money to move out. what should I do ??

    • Emilie Burke

      Hi Erick! I’m really sorry about this situation. First, know your rights as outlined in your lease! What sort of notice does your landlord need to give you? Second, there may be local assistance from government agencies or non-profits. Good luck!

  • William

    This is the first time getting into an apartment with two roommates or ever in that matter, when I heard the rent form the place that I’m at, I was pretty impressed. But now, I don’t have any money and rent is due tomorrow and I don’t get paid until two weeks on Friday. What do I do? I’m only 20 and all of this is stressing me out!!

    • Emilie Burke

      Hi William! I’m really sorry about that situation. It is a rough one to be one. Your best bet is to diligently budget so that you’re not in this situation again! If you need help, feel free to reach out!

  • I have been through workers comp and have applied for disability. I cannot find work yet the bills keep rolling in. I’ve deferred my college loans so I am not as worried about that. My rent is way past due as are my utilities. Leap said; I do not qualify because I don’t meet basic income requirements. What can I do to not become homeless?

  • Daerrion Cooper

    I’ve been on a lease since August of last year. I just recently lost my job & have no credit being only 21 years old. Any suggestions for assistance I can resource to? Im undergoing getting hired somewhere else (meaning I will be able to pay back any loan) but I cannot accurately calculate if I will be able to pay the full balance before my eviction.

    • Emilie Burke

      Hi Daerrion! I’m sorry about this situation! Have your lease payments been reported on your credit report? Those should usually help build some credit.

  • Ronald Collins

    I have always found it petty easy. If you know how to do any kind of construction to ask if you can work for part of the rent. You would be surprised at how many people will let you worse you don’t fall to far behind. The will even let you clean empty houses for them sometimes.

    • Emilie Burke

      That’s a great suggestion, Ronald! Trading your services is a great way to help manage this kind of situation! Just make sure to get any sort of bartering agreements in writing to protect you and the landlord.

  • dawndunbar44@gmail.com

    I’m cancer patient my aetna claim was closed it taking 3 months but it will be another month of no income what to do

  • I think it is easy to go under in this financial climate.
    Businesses seem to be fee happy, and just one unexpected fee can cause a catastrophe when the budget is really tight.

    With this epidemic of drug use, I can see it getting worse. When the medium income for two working adults in my state is near 50 grand per yr, and rent/utilities (or house payment) is about a quarter , but one disappears, for whatever reason, the other is lect swimming, trying to recover, but often losing everything.

    When will we start helping the families of those who are addicted? I am seeing too many instances where the one who tries to get help and keep everything going is the one left with the largest problem in the end.

    Drug addiction does not simpmy affect one person, the affects are far reaching and touch every person in that family and community. Strong families build strong communities!

    Let us remember the entire family in the devastation drug abuse causes. Yes, finances are a very large part when all goes under.

  • Cedrick Green

    I need help and just started a new job