If there’s one expense you’ve prioritized, it’s your rent. As a point of pride, you always paid on time and have been a good tenant. Now, you can’t make rent. A job loss or a sudden health crisis has depleted your finances. The increased cost of living has made it harder to make ends meet.
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You’re hardly alone. Data from Harvard’s Joint Center for Housing Studies and the National Low Income Housing Coalition suggests that millions of Americans across income levels are facing increased cost burdens when it comes to rent. You, along with others, could be terrified of being evicted. Long term, you worry about what will happen to your credit score if your landlord sells your debt to a collection agency.
What do you do? The team at Fidelity Smart Money has some answers. They broke down the smartest actions to take if you’re going to miss a rent payment.
Educate Yourself
Panicking may be understandable, but it’s hardly productive. The Fidelity team recommended educating yourself about tenant and landlord laws in your area.
It cited the U.S. Interagency Council on Homelessness, which suggests visiting LegalFAQ.org, a site created by Stanford Law School’s Legal Design Lab. The site can also help you find local housing assistance programs.
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Read Your Lease
The Fidelity team also advised reviewing your lease agreement, specifically looking for information about what your landlord can do if you’re late or miss a payment.
Talk To Your Landlord
Naturally, it’s scary and embarrassing to tell your landlord that you can’t pay your rent this month. But you might be surprised to find that they’re willing to work with you — especially if this is a temporary situation and you’ve otherwise been a reliable tenant.
“If you’ll have your rent money soon, you’ve been on time every other time, and you don’t anticipate being late again, you could ask your landlord to extend the deadline for this rent payment, with a reminder of your past track record,” the Fidelity Smart Money team said.
When talking to your landlord, ask if they have recommendations for local assistance programs. That said, the Fidelity team suggested checking your local laws or even speaking to a lawyer to ensure there aren’t downsides to initiating that conversation.
Find a Housing Counselor
Everyone needs help sometimes. That’s why the Fidelity Smart Money team recommended connecting with a housing counselor through a HUD-approved counseling agency. These professionals can help you understand your rights, explore financial assistance options and find legal aid if necessary.
On the HUD website, you can search by city and state to find counseling agencies that meet your needs.
Apply For Rent Assistance
Working with a HUD-certified counselor can streamline the application process for financial assistance — but you can also look on your own.
As the Fidelity Smart Money team explained, both religious and secular charitable organizations may be willing to help. You should also check for programs affiliated with your city or state.
“For example, there are state and local rent assistance programs that might be able to cover your monthly rent payments for several months — even a year or more — if you meet eligibility requirements, such as having an income a certain percentage below the area’s median,” the team wrote.
It recommended using the Consumer Financial Protection Bureau’s rental assistance tool to learn more.
Bottom Line
Being unable to make a rent payment can be a shock to your system — and your finances. But you don’t have to shoulder the burden alone. By following the Fidelity Smart Money team’s advice, you can find allies and resources to help you through.
You’re also your own best advocate. Doing your own research, communicating with your landlord and seeking out assistance are key steps toward getting back on your feet.
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This article originally appeared on GOBankingRates.com: 5 Crucial Things To Do If You Can’t Pay Your Rent, According to Fidelity
