Can’t Pay Rent? Here’s What You Do
Life is rough. People can find themselves struggling more and more every day when it comes to paying their bills. One expensive bill that Americans need to deal with is rent costs. When people don’t pay their rent, they can see a negative impact on their credit score, and even face eviction. However, there are tips that you should consider that may be able to help if you are dealing with a similar situation.
If You Cannot Pay Your Rent, Then What Can You Do?
In the case that you find yourself unable to pay your rent, do not worry. Granted, it’s a bad situation, but it’s not the end for you. There are tips that you can consider that may be able to help with your housing issue. Some popular tips include:
- Try to Get Housing Assistance
- Understand Your Budget
- Consider Your Emergency Fund
- Get Another Source of Income
- Get a Roommate
- Know Your Rights as a Tenant/Consider Legal Help
- Talk to Your Landlord
Try to Get Housing Assistance
If you are having a hard time handling the cost of housing on your own, you may benefit from housing assistance programs. There are a variety of options to consider. While there are opportunities at a local and state level to keep in mind, there are also federal opportunities. At the federal level, some popular housing assistance available, thanks to the United States Department of Housing and Urban Development (HUD), includes:
Housing Choice Voucher Program (Section 8)
If people want to stay in the private market while getting rent assistance, then this program is a great opportunity to consider. Section 8 provides qualifying recipients with housing vouchers. These vouchers will be used to go towards housing costs like rent. The recipient needs to find a property that allows these vouchers to be used as a form of payment. Besides that, these properties need to meet criteria that the local Public Housing Authority (PHA) sets. This includes a home inspection that the local PHA will do! If everything works out, recipients will move in and be responsible for any remaining difference that the housing voucher doesn’t cover.
Public Housing
On the other hand, this federal housing assistance program does not let qualifying recipients move into homes within the private market. Instead, public housing consists of government-owned properties that recipients can move into. This means that the government would be your landlord. The units are at a rental rate that the recipient can afford to keep up with.
Understand Your Budget
Your budget is super important when it comes to understanding your financial situation. It can show what money is coming in versus what money is going out. You will first want to list out your income. This will show you the amount of money you have. For example, let’s say that you work 40 hours a week, every week, at $15 per hour. That means after four weeks in a month, you can expect to have a gross income worth $2,400. This number will be different after taxes but you want to start by knowing the basics of your income. Now that you know your income, you want to look at your expenses. This includes your bills and anything else you spend money on. In this example, let’s assume that your rent and utilities are $1,600 a month, your insurance costs are $200 a month, your phone bill is $100 per month, your groceries are $250 per month and your car note is $350 per month. That means your bills are worth $2,500 which is more than what you’re making! This can help you pinpoint areas that you can focus on when trying to improve your housing situation.
It’s important to keep in mind that the United States Department of Housing and Urban Development (HUD) has a definition of what they consider to be affordable housing. According to the HUD definition, affordable housing is worth at most 30% of a household’s gross income. That means once you figure out your budget, you can better understand what the guidelines will be for your expenses like housing.
Consider Your Emergency Fund
An emergency fund is a savings cushion that you can dip into in case of emergencies. Do you have one? If so, now would be the time to use it. If you can’t handle your rent, you should consider that an emergency. In the case that you don’t have an emergency fund, you will want to slowly work on saving your money until you have one. A good first goal is to save $1,000. After that, another good goal is to aim for saving three to six months’ worth of expenses.
Get Another Source of Income
If you are having a hard time with how much the cost of rent is, then you may benefit from getting more income. For example, if you normally work 40 hours a week and make $2,400 in a month, you may be able to work an extra 10 hours a week and get an additional $480 per month in gross income. This extra cash can help you pay your bills so that you can better manage your expenses.
Get a Roommate
You may also benefit from having a roommate live with you. For example, let’s say you currently have a one-bedroom apartment worth $1,300 per month in rent. You may be able to find a two-bedroom apartment worth $1,900 in rent and you can split that cost with a roommate. That means you would be spending $950 per month instead of $1,300 all on your own! This can make a world of difference in how you manage your finances and improve your housing affordability.
Know Your Rights as a Tenant/Consider Legal Help
As a renter and a tenant, there are certain rights that you have. These rights are important to know because they can help you when times are tough. There are plenty of resources online that explain what your rights are as a tenant for your area. However, you can also get in touch with a professional like a tenant lawyer to ask questions during a consultation. They can provide you with the information you need and help you with any legal process that may be necessary for your current situation.
Talk to Your Landlord
If you don’t think you can get the situation back on track with any of the other tips on this list, then it may be time to talk to your landlord. They may be more forgiving than you think. You can try to find a compromise with your landlord and set up a payment schedule that works for what you’re dealing with. During this talk, you want to make sure you stay polite and respectful!
Bottom Line
If you struggle to pay rent, then you’re not alone. There are many people in the same boat as you. There are tips that you can consider that may be able to help your current situation. Some tips include:
- Try to Get Housing Assistance
- Understand Your Budget
- Consider Your Emergency Fund
- Get Another Source of Income
- Get a Roommate
- Know Your Rights as a Tenant/Consider Legal Help
- Talk to Your Landlord
You may have more opportunities for support than you think! You just need to know what to consider.