What to Do If You're Unable to Pay Rent for Your Apartment

It can happen to anyone.

You find yourself in a situation where you applied for an apartment that seemed affordable. You went ahead and moved in, and things went smoothly for a while. But then, something unexpected occurred. It could have been a family tragedy, a job loss, or a combination of various factors. Regardless of the cause, you now face the daunting reality of being unable to meet your rent obligations for the upcoming month.

The consequences of not being able to pay rent are far from trivial. They encompass grave challenges such as homelessness, severe damage to your credit, and the looming threat of eviction. Feeling fear in such circumstances is natural, but remember that you are not without options.

If you are uncertain what steps to take next, this guide is here to assist you in navigating through these turbulent times. It will provide valuable insights and strategies to help you overcome this challenging situation.

What to Do If You're Unable to Pay Rent

• If you cannot pay rent, it can lead to eviction and problems on your credit report.
• Depending on why you cannot pay rent, you can find solutions such as filing for unemployment, digging into your savings or assets, taking on a roommate, or borrowing from friends or family.
• Taking out a loan or cash advance may be an option, but there are caveats to be aware of if you choose to do so.
• Reaching out to government programs and non-profits is also an option. NYC has programs like One-Shot Deal to help people pay emergency rent.
• If you cannot come up with the money, you should speak with your landlord and try to make other arrangements. It's not in your interest to miss a payment and not talk to your landlord about it.
• Purchasing Rent Guarantee Insurance can help prevent these mishaps from happening in the future.

Solving Your Rent Problem

Before you can do anything, you have to take a good look at your situation. You might have more going in your favor than you believe.

If you can leverage the right perks, rent might not be a more extended problem.

Did You Just Get Laid Off?

Getting laid off might be terrible, but there's a silver lining to this you may be overlooking. You are entitled to unemployment if you worked for more than six months on a full-time, non-contract basis.

Ask yourself if you've filed an unemployment claim yet; if you haven't, it may be time to file a claim.

Unemployment payoffs can be just what you need to make ends meet. In New York, you may also be eligible for the Self-Employment Assistance Program, which offers similar financial benefits to UI.

You can learn more about New York's unemployment programs on the official New York State Unemployment Insurance site.

Do You Have Savings?

Ideally, everyone will have at least a couple thousand dollars sitting in a bank when they move in.

If you have money in savings or investment accounts, now is the time to withdraw them.

It's better to be broke and have a roof over your head than be broke and homeless.

Were You a Victim of Domestic Violence?

Domestic violence and abuse are legitimate reasons to break a rent agreement in the state of New York.

They are also valid reasons to get special assistance through UI and special housing assistance.

It would be best to talk to a social worker about your options.

It's also worth pointing out that landlords are very sympathetic to those who are fleeing domestic violence.

You can call 311 to find out if you can break a lease or get assistance after dealing with domestic abuse at home. In most cases, you will get the help you need.

Can You Pick Up Extra Work?

Never underestimate the importance of being able to work when you're facing severe financial problems.

New York City has plenty of places hiring people looking for a quick buck.

If you can work, you may be able to get a quick gig like Uber or Lyft to pay for the money you're lacking.

Can You Pick Up a Roommate?

Not all apartments will allow you to rent a room or pick a new roommate. However, if you are given that right, now is the time to consider it.

A roommate or a sublease will allow you to get enough financial cushioning to pay rent on time.

However, remember that getting a roommate might be slightly more involved than you think.

To learn more, read our Guide to Room Shares in NYC.

Can You Borrow Money?

If you have parents willing to lend you cash or a credit score that's good enough to get a loan for your rent money, you're in luck.

This option is valid if you're confident the financial struggles will be temporary.

Should You Take Out a Personal Loan to Pay Rent?

Though it may be unorthodox to do so, there have been cases where people have been able to scrounge rent money through a personal loan.

The problem with this matter is that you'll still need to pay it back and that most personal loans available to borrowers will take at least a month to clear.

People can rely on Three personal loan types for fast cash: a payday or unsecured loan, a cash advance, or a peer-to-peer loan (P2P).

Unsecured loans are loans that don't have a hard credit check but have high interest rates. The loan is usually available very quickly.

Almost anyone can qualify as long as they get a steady paycheck. If you are unemployed, it's more challenging to qualify for this type of loan, but it's not impossible.

Beware of predatory loan companies. Look for those with good reputations. Always read the fine print and ask how the interest rates work with the loan. If you decide to take out an unsecured loan, make sure you plan to repay it.

Cash advances from a credit card account might be a quick way of getting cash, but they are not without their drawbacks.

The interest on cash advances is notoriously high.

So, unless you know you will be getting paid later to pay off your advance, expect high surcharges on your account, which will continue to compound every month until you pay it all off.

A peer-to-peer loan from companies like Lending Club is excellent if you have decent credit. Like a personal loan from a bank, P2P loans require a hard pull on your credit.

However, it may be worth it to you. Different P2P lenders will have different rates, which can be lower than credit card rates.

Furthermore, you can get a loan commitment the same day, with funds being sent between 2-14 days, significantly quicker than a traditional lender.

However, just like any other loan or cash advance, you are putting yourself further into debt, so putting together a plan to pay the money back is essential.

Are the Housing Conditions Safe, Sanitary, and Legal?

Most apartments in New York City are safe and sanitary, but not all are.

You are entitled to a safe apartment that is up to code by law.

If you regularly complain about fire hazards, non-working heat, non-working outlets, or an extreme pest problem without the landlord helping out, you may have a right to withhold rent.

Technically, landlord negligence is considered a breach of contract. If you tried to keep up the apartment and the landlord has neglected to do his share, you may have the right to withhold rent or bail on the condo.

If you have paid money to fix issues that are the landlord's issue, you may be able to use that as leverage to pay less rent this month.

However, it's best to talk to a renter's assistance group before this plan.

Coming Up With a Plan

Trying to avoid eviction is all about knowing what approach to take and doing what you can to ensure you can keep your apartment.

Once you have all the factors lined up, you can figure out what to do and how to avoid getting on your landlord'slandlord's

Here's what you should consider while putting things together…

Should I Look For Government Assistance?

Yes, always.

If you are in a dire situation that is not your own, you should look into New York's assYork'se programs.

Domestic violence, unemployment, low self-employment numbers, and other similar issues qualify you for state assistance in many cases.

Before you panic, look at the government rent assistance programs you can access online.

New York City has far more assistance programs than most other cities, and talking to the right people may be all you need to do to afford rent.

Can Nonprofits Help Me Pay the Rent?

A better alternative for people who want to pay their rent is to contact one of New York City's noncities or housing programs. Many of the programs in the city are taxpayer-funded and are designed to help give people the financial assistance they need to live in the Big Apple.

Some of the more impressive nonprofits include:

• NYC HRA Rental Assistance. The Human Resources Association has an entire department to help housing unstable people. They have multiple programs, including CityFHEPS, designed to help you avoid evictions.
• Plumfund. Plumfund is a crowdsourcing platform designed to help with significant life expenses and emergency funds. If you have a lot of friends, then Plumfund would be a great way to make rent happen.
• A One-Shot Deal. New York City also grants a one-time emergency fund for unforeseen circumstances. It can be used for food, housing, or emergency medical bills. If you take this option, make sure it's your way out. It is a one-shot deal, after all.
• Homebase. Homebase isn't just an option; it's a unit's theme. This is a series of community outreach programs that include rental assistance, housing referrals, and financial coaching. There are Homebase operations in almost every significant portion of New York City. Qualifications vary based on your income, living area, and family size, so ask what they can do to help.

Should I consider not telling them?

It depends on whether you could make more money, get a loan, or have someone spot you enough cash.

If you did, good job.

You don't need to mention it to your landlord.

Generally speaking, if you can find a way to make ends meet using the methods above, there's nothing to raise concerns for the landlord's landlord. On the other hand, if this has not been the case, you will need to talk to them and alert them of the situation.

Many landlords will give you a grace period if you tell them the situation and are willing to put down some money towards rent.

Should I Pay Late?

If it's just using it instead of bad timing, you might be able to get away with paying your rent late.

That being said, making your payments during the grace period mentioned in your rental agreement is ideal.

If you can't, you may need to pay an additional fee.

You will most likely be evicted if you wait more than 30 days.

Can I Use My Deposit to Cover the Rent?

Most likely not. Landlords don't casually use security deposits to cover rent.

It is collateral, so they can collect it in the case of lost rent due to a tenant's failure to pay; an eviction order usually accompanies this if the tenant hasn't already left.

The other time, they may deduct from a deposit if the tenant has left the unit with damages.

Can I Sublet My Rental?

Believe it or not, quite a few people have subleased a room in their apartment to pay their rent.

Even putting a room on Airbnb can be a smart way to ease the financial burden of rent while you recover.

Read over your lease contract.

Give it a shot if it allows it or doesn't mention anything.

Of course, this isn't always doable in the long term, and many rental agreements strictly prohibit it from happening.

Can I Barter Services With My Landlord In Exchange for Rent?

Many apartment buildings have tons of work associated with them.

If you're short on cash and willing to do some handyperson work, you can barter with your landlord about being a property management assistant.

They may be willing to lower your rent. However, this is not the norm or a guarantee.
Usually, if you want to barter services or labor instead of rent, this should be done before signing the lease.

What If the Living Conditions Are Bad in My Rental?

People living in substandard conditions can also use payments they made towards repairs as a form of bartering.

If you have documented evidence of the neglect and receipts indicating the repairs you paid for, you may be able to get a rent drop until the landlord fixes the issues.

Of course, this can also be risky since landlords aren't legally required to barter with you.

You may want to do this as a last resort unless you are OK with walking away from your apartment.

Final Tips and Tricks

How should I approach my landlord about this issue?

The best way to approach your landlord about your rent issue is via writing, with plenty of tact.

Be apologetic.

Explain, in detail, why you can't afford rent this month.

Emphasize that the struggle is temporary if it is, and if it isn't, offer to pay what you can afford.

Landlords are human.

They get that living in New York City is not easy, and they don't want to go through the hassle of finding a new tenant.

Tell them you will work out a deal as soon as possible.

You'll be surprised at how well things will work out if you're smart about it.

Should I Have a Backup Plan?

If you can, put one together.

If you aren't sure whether or not you will be evicted and can't make rent, you need to look at a Plan B.

Ideally, you may get some aid from Social Services that could let you keep your place.

If you can't, you may want to ask friends if they would be willing to take you in.

A backup plan is never a bad thing to have.

It may be what saves your life.

What Do I Do If I Got Served an Eviction Notice?

This is the worst-case scenario, and you're right to be a little freaked out if you run into this issue.

Thankfully, eviction also has associated rules, and if your landlord tries to evict you illegally, you may be able to have a court case rule in your favor.

An eviction notice needs to be formally served to you.

If you do not get an eviction notice and pay the rent debt off before you receive it, the eviction can't go through.

Things like having a landlord lock you out of your home without notice can be grounds for a lawsuit.

Though there have been cases where people could win against landlord evictions in court, this is not something you should attempt without serious schooling.

Looking for a lawyer or agreeing to walk away from the apartment may be a good idea before the notice hits the courts.

Read on: What to Do If You Get an Eviction Notice in New York

How Can I Prevent This From Happening in the Future?

Times are tough, and that's no joke. Even the most stable job can disappear into a puff of smoke at a moment's notice.

That's why a new industry called Rent Guarantee Insurance is starting to take hold in New York City.

This type of insurance, paid by the renter, covers financial hardship when it comes to rent payments.

The way it works is simple.

You pay for Rent Guarantee Insurance ahead of time. If you lose your job or otherwise can't make ends meet, the insurance policy will pay your rent for the time explained in your contract.

Generally, RGI policies have an annual fee equal to a month's rent.

Once the rent is paid, the insurer will discuss repayment terms with the renter—currently, the most famous name in NYC for this type of insurance is Insurent.

They call it their Lease Guaranty Program.

Another popular service comes from TheGuarantors, who currently service New York City and other major metropolitan areas in the United States.

Despite these services, the best way to ascertain your ability to pay rent in the future and not put yourself further into debt is to build your savings.

It would be best to have a healthy financial security cushion, enough in your savings account to pay for rent for six months or more.

Saving that kind of money doesn't happen overnight. However, with careful monthly budgeting, you can build your equity over time.