OneMain Financial: What Tenants Can Do When They Can’t Pay Rent

Whether due to job loss, an unexpectedly large bill or a medical emergency, not being able to cover rent can be an overwhelming and stressful experience.   

Some people turn to rent loans, which could help in the short term but add debt. No matter the situation, the most important thing to remember is that there are options to explore.  

By considering the options, a renter might be able to figure out how to get through a tough time without making the situation more difficult or potentially losing their home. Here are a few ways someone could get back on their feet. 

Talk to the landlord  

It might feel embarrassing to admit to having money trouble but talking to the landlord early can make a big difference. Don’t wait until a missed rent payment — landlords are more likely to work with renters if they’re honest, upfront and communicate their needs. 

Renters can explain their situation and ask for possible solutions. Some landlords may offer a payment plan, while others might agree to a different temporary solution, such as waiving late fees or pushing back the date the rent is due.  

Remember to put any new agreements or changes to the lease in writing, so everyone is on the same page. There may be more formal forms or steps to follow if the landlord is a management company or local laws require the documentation.  

Look into rental assistance programs 

There are groups and programs to help people who are struggling to pay rent. Some are run by federal and state governments, while others are offered by houses of worship, charities or community centers. Rental assistance programs might give a renter a one-time payment or cover a few months of rent while they get back on their feet. 

To find help, consider calling 211, a free service that connects people with local resources. It may also be worthwhile to check city or state websites to see if there is any information about emergency housing funds.  

Some places require proof of income, a lease or a letter from the landlord, so make sure to gather the necessary paperwork for a smoother application process. If eligible, the program may send the money straight to the applicant’s landlord or provide a voucher. 

Think carefully before borrowing money 

When rent is due and there’s no money in the bank, borrowing funds might seem like the only solution. Some people might consider a rent loan — a personal loan meant to cover housing costs. A personal loan can come from a bank, credit union or online lender. 

While a loan may seem helpful, it’s important to look at what’s involved. The borrower will need to pay the money back with interest, which is the cost of borrowing funds, over a certain period of time. Repaying a loan with interest means the renter will end up paying more than the original rent amount, which could put them more in debt 

A personal loan can also come from friends and family, although this arrangement could be complicated if the amount needed, loan terms and repayment plan aren’t clearly communicated.  

If taking out a loan from a financial institution or licensed lender still sounds like the best idea, shop around for the best interest rate and make sure the terms are clear before signing any agreements. 

Look for ways to cut costs  

Instead of rushing to borrow money, a potential applicant could consider cutting other costs first. Even small changes can make a big difference.  

Start by identifying non-essential spending and look for expenses to reduce or pause temporarily. Some easy ways to cut costs include: 

• Canceling unused subscriptions or memberships 
• Cooking at home instead of eating out 
• Using coupons or buying store-brand groceries 
• Switching to a cheaper phone or internet plan 
• Limiting online shopping 

Other tactics to consider are delaying a big purchase or taking on a short-term side gig like dog walking or babysitting.  

Explore other living options 

If paying rent each month keeps getting harder, it may be time to think about different living arrangements. Perhaps there’s a more affordable apartment nearby, or maybe it would be possible to split the cost by getting a roommate. Even moving in with a trusted family member or friend for a short time might provide the necessary breathing room to get back on track financially. 

Downsizing isn’t always easy, especially if the space feels like home. But if staying put increases debt, a move might be a helpful reset.  

A path forward is always possible 

Finding money for rent may feel like a huge hurdle, but there are ways forward. Help is out there — sometimes it takes looking at different options and considering which one is the best fit.  

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Name: Sonakshi Murze
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