One in four Americans have lost their jobs due to the coronavirus pandemic. If you're worried about paying rent after losing your job, there are options for you to get through this crisis. The $2 trillion stimulus bill that was passed in March is well underway, with paper checks in the mail as early as April 17.
Because of this unprecedented time, landlords may be more flexible simply because their tenants don't have any income. Also, mortgage lenders may also be providing some kind of deferment in making payments for landlords and property owners.
If you're concerned about how to pay rent after losing your job, the first thing to do is let your landlord know about it in writing.
There's no one-size-fits-all approach to how to do this, but let your landlord know that you recently lost your job and would like to work out a plan to pay rent.
Note: Some property management companies may be closed due to coronavirus, so send multiple emails, leave voice messages and send text messages. Chances are, the property managers are working from home and may be slower to respond.
Be realistic when asking for what you think you need. Calculate your budget and how much you think you could realistically pay each month.
Some options may include:
If your lease is coming to an end and you need to either move or renew, talk to your landlord to see if they're willing to extend the lease on a month-to-month basis.
“We encourage our residents to get in contact with us ASAP if they are not able to pay their rent on time. We are willing to work with our residents on payment plans, as long as they hold up their end of the bargain." – Justin Becker, owner of Michigan-based Brookfield Management
Be sure to get your new agreement in writing and when a new month is approaching, be sure to give your landlord an update. Send them another letter letting them know how much you can pay and what your job or financial situation looks like.
Keeping the lines of communication open lets your landlord know you care and are serious about the situation.
Stimulus checks will give many Americans $1,200 per adult and $500 per child under the age of 17, with limits based on income. Additionally, the federal government is providing an extra $600 on top of a state's unemployment payment for four months.
This crisis has led many tenants to begin organizing rent strikes across the nation. Activists believe a rent strike may help pressure landlords to offer renters some kind of forgiveness. For some, this is their only option to get through these times.
The good news is, some states and cities are putting in measures to ensure tenants don't get evicted during this time. Known as moratoriums, these are measures that ensure you can't get sued for nonpayment or evict you during this time.
It doesn't mean you get a free pass to not pay rent. You will still have to pay it back at some point.
Here are some tips and resources to help you during this time:
Claire Tak is a writer who previously served as head of content and chief editor for FinTech companies in New York and San Francisco. Her work has appeared on FOX Business, Bloomberg and Forbes. She writes regularly about travel, money and being a good human. Traveling and snowboarding are her two favorite things to do.