What to Do If You Can't Pay Rent on Time

Many tenants run into problems paying rent on time or in full now and then. If you are a conscientious and honest tenant who is temporarily short on funds, you'll want to take steps to avoid having your landlord send you a late rent notice—you can get evicted for paying rent late.

It's likely that your landlord is counting on your timely check to cover the mortgage payment on the rental. Because the bank won't forgive your landlord's tardiness, your landlord can't afford to ignore yours. So, don't ignore the problem and hope it will go away. Instead, learn your options and try some of the suggestions below.

Read Your Lease or Rental Agreement

When you can't pay your rent, you need to assess exactly what you might be on the hook for. Confirm the amount of rent that's due and the due date.

Is There a Grace Period?

Don't assume that there is a grace period for paying your rent—in most states, landlords aren't required to give tenants an extension. The only way you'll know for sure whether you have an extra day or two to pay is to read your lease or rental agreement. If you're lucky enough to have a grace period, explore the possibility of being able to scrape up rent before the grace period expires.

Will You Owe Late Fees?

Additionally, depending on the law where you live, your landlord might be able to charge you late rent fees. How much they can charge depends on your state law and the terms of your lease or rental agreement.

Some states put dollar limits on late fees. And, even if your state doesn't have a late fee law, any late fee must be reasonable—for example, a landlord can't exceed a certain percentage of your rent and must have an upper limit.

Your lease or rental agreement should lay out any late fees you might owe if you don't pay your rent or pay it late.

Evaluate Your Financial Situation

Once you know what you might owe if you don't pay rent on the due date, it's time to take a hard—and honest—look at your financial situation. You'll want to do what you can to make sure your rent is paid. Otherwise, you'll face potentially harsh consequences, such as having your landlord report you to the credit bureaus, loss of a landlord reference for future rentals, and even eviction.

If You No Longer Can Afford Rent

The biggest question is whether you will be a little short or a lot short. If you've recently lost your job or had an unexpected expense that's made it impossible for you to afford your rent now and in the future, it might be best to try to work something out with your landlord and then find a new place that won't break the bank.

Try talking to your landlord. Let them know what's happened, and make it clear that, unfortunately, affording rent will be an ongoing problem. You can ask the landlord to let you out of the lease or allow you to assign your lease to someone else. Try to work out a payment plan (see below) for any rent you already owe or might owe until you find a new place. Get any agreement in writing.

Another option might be to seek rental assistance from an outside source, especially if you've talked with your landlord and they're not willing to work with you. (See below for more details.)

If you absolutely must move out, know that landlords generally have a duty to try to rerent your unit when you break your lease. This means that you would be on the hook for rent until they find a replacement tenant. If you're in a hot rental market, that might be only a month or two; in a slow rental market, though, it might mean you'll owe rent for the entire term of your lease.

If You're a Month-to-Month Tenant

Being a month-to-month tenant can be beneficial in this situation. If you're no longer able to afford rent for your current place, you can simply give your landlord notice that you are leaving. Check both your rental agreement and your state's law to find out how much notice you must give. Also, be sure to send the notice to the landlord in the manner stated in the rental agreement—for example, in writing, sent by certified mail.

Even if you give notice to end your month-to-month rental, you will still be responsible for paying rent through the end of the notice period.

If You Have a Short-Term Cash Problem

If you're just having trouble paying rent in the short term, determine when you might be able to pay it. Help the process along by brainstorming ways to get funds immediately so you don't risk losing your home.

Brainstorm Alternative Ways to Pay

With a little creativity, you might be able to bridge your rent gap.

Ask Friends and Family

Consider asking a family member or close friend for a loan to cover your rent. Often, it will be better to work out some sort of payment plan with a friend or family member than with your landlord—your landlord will never know you were tight on cash and will still be able to give you a positive reference in the future.

Be realistic with how much and when you can repay the loan. Be sure to put your agreement with your friend or family member in writing.

Apply for Rental Assistance

If you've never had to worry about paying rent before, you might not be aware that many cities, counties, and states have programs that offer emergency rental assistance. These programs are often designed to provide short-term help, and might be just what you need to get you through your current difficulties.

Try searching online for "rental assistance" in your area, and research any local results that pop up. Also, take a look at the U.S. Department of Housing and Urban Development's (HUD) list of local housing assistance programs.

Another option is to research any nonprofit or religious organizations in your area that help renters. Search online for housing assistance generally in your area, or check out 211.org for local resources.

Got Anything to Sell?

Depending on how big of a gap you have, look around your house to see if there's anything you can sell to help cover your rent. Of course, selling something of value you own probably isn't ideal, but it might be better to part ways with a material item than it would be to get evicted.

Alternatively, if you have any unused credit card points to cash in, now might be the time to do it.

Pay Rent With a Credit Card

As a last resort, consider paying your rent with a credit card (if your landlord will allow it). This might be a good idea when you know you have more funds coming your way and are confident that you'll be able to pay off the card before you get hit with the high interest rates that most credit cards charge. Use this approach with caution: You don't want to have your current shortfall snowball into huge credit card debt.

Don't Bounce a Rent Check

It might be tempting to pay your rent with a check that you suspect won't clear your bank just to buy yourself some time. Don't. It's illegal to write a check that you know (or are pretty sure) will bounce.

Bouncing a check will also result in your bank—and probably your landlord—charging you fees. Like any other business, your landlord has the legal right to charge you if your rent check bounces. The charge must be reasonable—such as the amount the bank charges for a returned check, probably $20 to $50 per returned item, plus a few dollars for the landlord's trouble.

Your landlord should tell you in advance—in the lease or rental agreement, orally, or by means of an obvious sign in the rental office where you bring your monthly check—that a bounced check fee will be imposed.

Seek Help From a Housing Counselor

As soon as you know you're going to have trouble paying rent, consider contacting a HUD-approved housing counseling agency. They can help you come up with a plan and perhaps help you negotiate your rent with your landlord.

Negotiate Your Rent

You're more likely to be successful (and avoid an eviction lawsuit) by being up front with your landlord about your situation, and asking for an extension. A landlord who considers you a good tenant won't want to lose you: Evictions are difficult and expensive, and once you're out, the landlord will have to find and move in new tenants. This means you can probably get the landlord to accept a portion of the rent now—maybe even a small portion—and the rest later. Here are some basic steps to take:

• Ask your landlord in writing (as far in advance as possible) for a few extra days. Raising the issue before the landlord has a chance to miss your rent. There's a possibility this could backfire—the landlord could simply give you a demand to pay the rent or move out. However, you don't have much to lose, because the landlord could do the same thing once they realize rent is late.
• Explain your difficulties and emphasize (if you can) that they are only temporary. Note also (if it's true) your good record of paying rent on time in the past.
• Offer (if at all possible) to pay at least some of the rent on time. By paying even a small amount, you're proving to your landlord that you intend to follow through on the rest of your obligation. Landlords know that a tenant who has paid a portion of the rent is less likely to break the lease than one who has received a free ride.
• Give your landlord written assurance of your plan to pay the full rent by a certain date, such as the 15th of the month—and make sure you keep your promise. Your landlord might ask for a date that's tied to a verifiable event, such as your payday.
• Be prepared to pay a late fee if the landlord has a late fee policy. Or, if you think your landlord will be responsive and your late rent is a rare occurrence, ask your landlord to waive any late fee. Again, make sure that any waiver is in writing.

It can't be emphasized enough: If you agree to anything with your landlord, get it in writing. It's preferable to have both of you sign the agreement, but if you think that's asking too much, simply write a letter to your landlord outlining what you've agreed upon, and state specifically that the landlord should let you know as soon as possible if anything you've written up is inaccurate. That way, if your landlord gives you a termination for nonpayment of rent notice, you can use the letter as a defense to an eviction lawsuit.