Buzz
While March 2020 may have felt like it lasted forever, it’s almost behind us. A new month has arrived, bringing with it many changes since the last time you made your rent payment. We’re now practicing social distancing, the government passed a large economic stimulus package, and the coronavirus has led to unprecedented levels of unemployment claims.
If you’re stressed about meeting your rent payment this month, you’re not alone. Many states and cities have enacted temporary eviction bans, but that doesn’t mean you can’t eventually face eviction if you stop paying your rent.
If you need help staying afloat right now—and want to maintain a good relationship with your landlord (who likely has a mortgage to pay as well)—here are some ways to get your rent paid as soon as possible.
Rearrange your finances
Adjusting your budget could help you manage until you receive your government stimulus check or unemployment benefits.
Cait Howerton, a Certified Financial Planner and senior financial coach at SmartPath, highlighted that the six-month suspension of federal student loan payments might provide extra funds for your essential expenses. You could also use credit card rewards to cover costs like groceries or gas, then redirect that cash to pay your rent. Another possibility? Temporarily reduce your retirement contributions to free up cash until your income normalizes, according to Howerton.
Don’t forget to contact your utility provider: You might be able to postpone paying your electricity, gas, or water bills for a few months without risking service disconnections, though the outstanding balance will likely need to be settled later.
Look for local assistance programs
If you're uncertain about where to seek rent assistance in your area, a good starting point would be to check your local newspaper's website or contact your local housing authority. You could also reach out to organizations like the Salvation Army, the American Red Cross, or Catholic Charities for support.
“Community resources are available, but the specific rights or assistance you can access as a tenant varies depending on where you live,” said attorney Leslie Tayne. “For instance, residents of Orange County in Florida are eligible for a one-time rent payment if they are furloughed due to the pandemic. Meanwhile, in New York City, Comptroller Scott Stringer encourages residents to contact his office to connect with local agencies offering aid.”
After exploring your financial options and finding potential help in your community, the next step is to talk to your landlord.
Reach out to your landlord for assistance.
If paying the full rent or even a partial payment seems impossible, inquire with your landlord or property manager about what options they may offer.
“I wouldn’t recommend offering a solution immediately,” advised attorney Leslie Tayne. “First, observe what the landlord is willing to offer, and if more is needed, then you can request it.”
Marina Vaamonde, a real estate investor and founder of PropertyCashin.com, stated that there isn’t a universal approach, even for tenants in different units with the same landlord. “Every tenant faces unique circumstances that need individual attention,” she explained.
It can be helpful to update your landlord on the actions you’ve already taken or plan to take to catch up on rent. For instance, if you’ll be able to pay once your unemployment benefits begin, make sure to mention that. If you’ve sought assistance from local agencies, let your landlord know. If you’re able to pay rent this month but are concerned about reduced hours before next month's rent, it’s better to inform your landlord early.
Vaamonde shared that her team has been able to connect some tenants with government and nonprofit rent assistance programs. “Given that many of our tenants are being laid off, we’ve decided to defer part or all of the rent on a case-by-case basis until they can access available assistance programs,” she said.
If your landlord uses an online payment platform, they may be able to modify your rent payment schedule. Colin Crook, who resides in California and rents out property in Portland, Oregon, uses Cozy to manage payments. He explained that he can remove late fees, provide credit for future rent, and enable a payment plan allowing tenants to pay weekly installments.
Even if your landlord prefers more traditional methods, they might be open to breaking your rent into installments, waiving late fees, or even accepting credit card payments as an exception. Just be sure to get any agreements they make in writing.
