Housing is a basic necessity for everyone. But as pandemic restrictions ease, renters are feeling the pain.
Many temporary government-enacted pandemic relief programs — such as expanded unemployment benefits and eviction moratoriums for renters — have now ended. A January 2022 report from the Harvard University Joint Center for Housing Studies shows that the financial stresses of the pandemic have disproportionally impacted renters. And these financial strains have hit Black and Hispanic renters the most.
Low inventory and increased demand within the purchase and rental markets have driven prices up nationwide. Rising inflation leading to higher prices for all consumer goods also has an impact. The report finds that the financial struggles renters are facing today are more profound than statistics on missed rent payments might suggest.
For renters experiencing such difficulty, GreenPath Financial Wellness, a national 60-year-old nonprofit financial counseling organization, suggests these five steps.
- Assess your situation
First, review your financial picture. Utilize a budgeting worksheet to track monthly income and your expenses. Take care of essentials such as housing, medicine, food, utilities, childcare, and transportation first. Review and curb discretionary spending if you’re at risk of missing a rental payment.
Are you expecting a tax refund or bonus that could catch you up? Can you afford a payment plan to resolve past-due rent? Check with your lenders to see if a temporary payment deferment for credit card payments, auto loans, or other personal loans is possible. Determine what you can realistically pay and create a plan to catch up if you are short. Then, continually review your budget and adjust as needed to stay on track with your rental commitments.
- Contact your landlord as soon as possible
Keep the lines of communication open with your landlord and explain your situation along with your proposed solution. Options may include:
- Deferring your unpaid portion of rent to a later specified date or proposing a repayment plan
- Asking for an adjustment of the lease terms based upon a recent hardship
- Applying for Emergency Rental assistance (ERA) funds
- Offering to work off some/all of the unpaid rent
- Keep records of all interactions
It is important to keep detailed records of all interactions with your landlord. This includes times, dates, and names of persons you were in contact with, along with copies of any written correspondence and conversation summaries.
- Apply for help and assistance
Organizations such as Justshelter.org, United Way, National Multifamily Housing Council and RentAssistance.com can provide resources and help for renters. Check the US Housing and Urban Development website, and your state and local housing agencies for available ERA funds. The Legal Services Corporation is an independent nonprofit established by Congress to provide financial support for low-income Americans. GreenPath’s certified advisors also can help you navigate the process.
- Prepare for action
GreenPath provides several resources, including a resource guide to help renters address their housing concerns. Check out some success stories from GreenPath clients who’ve gotten back on track and avoided eviction using GreenPath’s rental counseling services. Contact GreenPath at 866-648-8122 or visit www.greenpath.org to speak with certified counselors who can look at your entire financial picture, help you get perspective, and develop a personalized plan before before eviction is imminent.