I can’t afford rent: how to find funds and negotiate with your landlord.

TL:DR

Not being able to pay rent is some straight up horror-movie-level scariness.  Actually, it’s worse because it’s real life and not a movie.  When your basic necessity of having a home and shelter is threatened it can be difficult to know how to find the funds.  Job loss, a death in the family, or sharp increase in the cost of rent can affect our ability to pay rent.   

When the Covid Pandemic hit, many of us experienced job losses and the inability to pay rent in full or even at all and left tons of folks grasping for any means to pay the bills.  When I was a property manager during that time, I saw renters pursue all sorts of methods and negotiations to help get by; some of which I’d like to share in hopes of helping should you find yourself in a position where you aren’t able to afford rent.

If you’re tight on money or experiencing a devastating loss of income, the first thing to do is evaluate your assets. 

What do you own that could possibly be sold to use for rent money?  There are a myriad of websites and apps including Facebook Marketplace, Craigslist, eBay, Mercari, etc. that can help facilitate selling goods.  

Keep in mind some third party selling services charge a flat rate fee or percentage of the sale in order to use their platform, so using a website or app where you can sell locally and meet someone in person might be a better option if you’re looking to make the most stacks.  If going this route use extreme caution when meeting strangers.  I recommend bringing a friend or family member and meeting in a public place during the daytime.    

If you live in an area with a smaller population where it might take a hot minute to sell items quickly, it’s probably worth paying a small fee to be able to make at least some sort of money.  Better some money than no money, right?   

Consider forgoing all nonessential services or items you’re paying for that aren’t absolutely necessary. 

I’m talking about streaming services, food delivery (paying $30 for a $7 fast food burger?  Rookie mistake), or even simplifying your grocery budget to exclude higher priced or non-necessity items (I’m looking at you, gallon of ice cream and soda).

It might not seem like a ton of money removing a bunch of small cost purchases, but they all add up and supply a warm hug your budget in the end.  Nobody likes to eliminate their Treat-Yo-Self splurges, but if you’re looking at being homeless it’s a small price to pay.  

This is also where I get on my soap box and preach about having an ‘emergency fund.’  With the popularization of financial gurus, the emergency fund has become a familiar concept but many folks still don’t have one.  An emergency fund is a dedicated amount of money set aside for emergency situations only, such as an unexpected car repair, loss of income, medical bill, etc.  

An emergency fund is straight up gospel for me and it’s extremely important to have one.  It’ll depend on your situation, but most emergency funds range anywhere from $1,000 to $4,000.  In the case of paying rent, your emergency fund should probably be at least the cost of rent itself if not a few hundred more for good measure.  However, if an emergency fund is a new concept for you and you haven’t yet saved for one, there’s still hope!  In the meantime, start saving RIGHT MEOW.

Once you’ve cut all expenses possible to come up with some extra cash, if you’re still going to fall short there’s a few other options to consider that involve asking for outside help:

Ask to borrow money from friends or family.

This is always a tricky one because money is a touchy subject.  You’ll have to vibe out if this is a possible scenario given your family dynamics.  Perhaps instead of plainly asking for money, ask to do errands or “earn” the money somehow.



Overall, I don’t highly recommend this approach as it can turn sour very quickly and money has a reputation of complicating relationships.  But if you have solid relationships and can make it work than it may be worth a shot, especially if you are truly at risk of losing your home.

Pay with a credit card. 

This might be a good option if you’re able to pay off the balance regularly and the credit card doesn’t have a cripplingly high interest rate.  This would be a good short term solution if you only need a couple months or so to get back on your feet. 



However, I would discourage using this method as a long term solution because increasingly high debt can negatively affect your credit score and you’ll be paying more in the long run due to interest and possible fees. 



*Credit Card Disclaimer*: If you pay rent each month on your credit card to accumulate cash back incentives, airline miles, or other rewards offered by the credit card company and you pay off the balance each month, this won’t apply to you.  High five for being responsible and slaying those airline miles!

Take out a loan. 

This should be a last resort option but I wanted to mention it as I’ve seen some renters do it, both successfully and unsuccessfully.  Most ‘payday loan’ type businesses are in the business to make money (shocking, I know) and have extremely high interest rates and fees. 



Their marketing schemes may seem otherwise, but their astronomically high interest rates make it almost impossible to recover and get back on a good payment schedule and can leave you drowning in debt if you’re not careful.  However, if you are confident it’ll only take a month or two of loans to get back on track, this might be an option to consider.  If going this route, always read the fine print on the loan terms so you know what to expect.

Seek charity/government assistance. 

There are many organizations, government programs (state and local), and charities that help people struggling to afford rent.  Conduct a Google search and start with LOCAL agencies first.  Make a list of agencies, charities, and organizations that can assist you.  When creating the list, do a brief search on each website to see if you mostly qualify for assistance. 



Most organizations list their qualifications up front so you can know right away if it’s worth investing your time to apply.  Most requirements include providing proof of income or loss of income, family size, and a copy of your rental agreement.  If you’re seeking outside assistance and your rent is already due or close to being due, communicate this to your landlord so they know you’re proactively looking for help.

If you’ve cut out all expenses possible and aren’t able to receive outside help to pay for your rent, here are a few options to help negotiate with your landlord and try to compromise:

1. Communicate with your landlord and be honest.

Let them know your situation.  Also inform them of any methods you’ve used thus far to come up with the money as mentioned above like selling items, cutting expenses, or contacting organizations for rental assistance.

 

2. Offer to pay part of the rent at the beginning of the month and the rest of it in the middle of the month. 

This allows you extra time to pick up some cash through finding additional work, Door Dashing, selling items, etc. between rent payments.  Your landlord may or may not be open to this but if you’re really in a pinch and have been an otherwise reliable renter, try to persuade them you’re good for the money.  

If they agree, write up a short lease addendum stating the terms of when and how you’ll pay for that month and have both parties sign and date it.  Since you’re both going outside of the lease terms, it’s important to document and agree to any new terms in writing.  Do not accept a ‘word of mouth’ agreement as these can get messy.  Should anything back fire, it becomes a ‘he said, she said, they said’ situation and the source of truth will always revert back to the lease agreement.

3.  Offer services to the landlord in exchange for a discount on rent.

No, I’m not talking about “special favors,” ya filthy animal. I’m talking about services such as trimming landscaping, painting, cleaning gutters, picking up trash in common areas, or small repairs.   This works especially well if you live in community style housing that requires substantial upkeep, such as an apartment complex, but it can be a possibility for all housing types.  Offer to do some labor in exchange for a few hundreds dollars off the rent once the work is completed.

Whatever you’re doing, make sure it’s not something you’re already supposed to be doing as part of your lease agreement.  Same as #2 above, create a lease addendum outlining the scope of work you’ll be doing, for how long, and how much money you’ll be receiving as a result and have both parties sign and date it.

Move Out Early.

If you absolutely cannot find the means to pay rent and have extreme extenuating circumstances, sometimes you have to break your lease and move out early in order to find less expensive housing for the long run.  If this is the case and you’re in a lease term make sure to read through your lease agreement and note any stipulations associated with taking this route including any fees or penalties.  

If your lease agreement is currently month to month (not locked into a term), it’s likely you’ll only be required to give a 30 Day Notice and move out without penalties.  Still, read over your lease agreement to make sure you’re aware of any rules or procedures you’re required to enact as part of moving out such as cleaning requirements, how to return keys, etc.  Moving anywhere in general is pretty expensive, but if your financial situation isn’t likely to change soon sometimes it’s worth it to find something that you’ll be paying less for over time.

Best of luck finding the means to pay your spicy rent and negotiating with your landlord!