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What to Do if You Can’t Afford Rent Payments Due to Coronavirus?

What to Do if You Can’t Afford Rent Payments Due to Coronavirus?

For the 36 percent of Americans that are renters, the virtual national business shutdown due to the COVID-19 pandemic crisis is hitting hard.

With an estimated 10 to 20 million people out of work, innumerable citizens are or will soon be struggling to pay their rent on the first or 15th of the month.

Housing is the No. 1 monthly expense for most people. So, amid the spread of this novel coronavirus, rent payments may be difficult to come by.

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If you’re having trouble paying your rent — or fear you soon will be — you can follow these steps to meet your lease obligations.

Communicate with your landlord if you can’t pay your rent

For many, even the combination of unemployment compensation and government assistance isn’t enough to cover the rent along with other bills. The best plan is to discuss your situation with your landlord or property manager and come to an agreement together. And regardless of what you need or the solution you may be able to come to with them, the first step is to be honest, open and upfront with them.

“[No landlord] wants to just get a text or email saying times are tough and we need help. What is your runway on finances? When do you think you might need help if it’s not right away? Be as honest and open as you can, because this will help your landlord plan too,” Portland, OR, landlord Colin Cook told CNBC.

And your best course of action is to get ahead of the problem. Don’t wait until your rent is due to spring your need for help. Give your landlord or property manager as much notice as you can, which gives them more time to put a plan into place and also shows your willingness to follow any agreement and that you’re acting in good faith.

Of course, if possible, do all this by email or phone. Don’t make an unnecessary trip to the property manager’s office if you can avoid it, for your safety and theirs. Chances are, they are working remotely anyway.

signing lease

Ask if you can restructure your payments

The most feasible arrangement to offer your property manager is a reasonable payment plan. Present them directly with a plan based on your current needs and limitations.

  • Show your need by providing documentation or proof of the severity of your financial situation. The more you have the better, whether it’s a memo from your employer indicating the length of your layoff or a copy of your unemployment compensation application. Don’t be ashamed of needing help. Millions of Americans are in the same exact situation as you are right now.
  • Let your landlord or property manager know how much you can reasonably pay now and how much you’ll be able to pay over the next month or two. Unless you’re in dire straits, you should offer to pay at least some of your rent. If you offer something, they’re more likely to agree to your plan.
  • Give them a specific date when you’ll be paying back the remainder, along with full payment of that month. Stick to that date. If you can’t, discuss an extension with your landlord as early as you can.
  • Provide all of this in writing, signed and awaiting their countersignature. Make it as easy for them as possible.
  • Assure them that this is only temporary until the crisis is over and that you do not anticipate this happening again.

There’s a chance the landlord will request a late fee to be paid at the time of settlement. Feel free to ask that it be waived if you’re a good tenant who has previously always paid on time. Your landlord might also present a counteroffer.

Know before you go in exactly how much you can afford and be clear about your limits. And if they’re not open to rent restructuring, ask them what solutions they may be willing to offer. All apartment communities will be handling this situation in a slightly different way, so don’t assume that this your only option or demand that your property manager accommodate you.

Have empathy for your landlord

We might think of our landlords as giant corporations getting rich off of our rents. But the truth is, almost half of rental properties are individually owned, mom and pop landlords and people just like us investing in real estate.

They’re also under stress from the coronavirus crisis with property taxes, insurance and mortgages coming due, repairs and upkeep to make and property managers and maintenance staff salaries to pay, with rent their only source of income. Even large rental companies will feel the pinch as they have difficulty covering expenses, utilities and mortgages.

Most landlords want to help you in this time of need, but they aren’t immune to the economy themselves. Be kind, have empathy and be patient with your landlord or property manager. Absolutely avoid making demands because you are asking them for help.

And don’t take advantage of the situation. If you can afford your rent, keep paying it. That will only lead to them being able to assist other tenants and staff.

stressed person

What if your landlord can’t or won’t help?

If your landlord is not willing or not able to help restructure your payments or offer any rent relief, you do have some other options.

1. Apply for rental assistance

The U.S. Department of Housing and Urban Development’s website offers links to a number of helpful resources for rental assistance, such as state or local financial assistance programs.

As well, the Salvation Army and Catholic Charities may also be sources of rental support. You can also contact the United Way by dialing 2-1-1 to be connected to local organizations that may be able to help.

And if you or anyone in your household is a veteran, HUD and the U.S. Veterans Administration has programs that can help with rent.

2. Take out a loan

If you have solid credit and can prove that despite the current crisis you’re a trusted recipient, you can turn to your bank and apply for a short-term loan. Banks will take into account your financial history and may be willing to loan you enough money to take care of rent and expenses.

Do you own a small business? Then you can apply for a Small Business Administration Disaster Loan. These loans are not only available for you to help keep your business afloat or pay employees but to keep your home and bills paid, as well. And through the Paycheck Protection Program portion of the federal government’s stimulus package, additional types of businesses can qualify for small business loans.

3. Take advantage of the CARES Act

The CARES Act, the $2.2 trillion stimulus package passed last month, is offering a cash payment to most every American. The majority of those individuals making under $75,000 (or $112,500 as head of household) will receive a stimulus check of $1,200, plus an additional $500 per household with a dependent (a bit less for those making up to $99,000 individually or $146,000 as head of household). These payments have already started appearing in some bank accounts.

And for Americans who have lost their job due to the coronavirus crisis, the CARES Act is also providing an additional $600 a week for those receiving unemployment compensation through their state during the shutdown, on top of their regular payment, for up to 39 weeks.

Some states are also offering even more assistance to their citizens who lease. For example, Delaware is providing a payment of up to $1,500 for renters who have lost their income. Be sure to check if your state or city is offering similar programs.

The federal and state governments are encouraging Americans to use this stimulus money to help pay bills, including rent.

What shouldn’t you do?

It’s understandable that desperate times call for desperate measures. And for many people, this may be their first time in this sort of situation. Even if you can’t figure out other options, don’t put yourself in a situation where you kick the can down the road that will only make things worse.

  • Don’t send your landlord a check you know will bounce. You won’t accomplish anything but angering your landlord and possibly setting yourself up for future eviction. And worse, you’ll still owe the money.
  • Don’t just ignore the problem in hopes that it will go away. No one knows how this crisis will play out and the last thing you want to do is have unpaid bills and no recourse for how to resolve them. Your rent isn’t going anywhere, even if you ignore it.
  • Avoid turning to payday lenders and car title loan companies to find quick cash. In the end, you’ll be paying much more in the long run and putting yourself at risk of damaging your credit.
  • We’ve mentioned this a few times already, but don’t demand that your landlord or property manager needs to help you. They do want to work with you, but they aren’t going to let you live rent-free.
  • Lastly, and hopefully it goes without saying, absolutely don’t skip out on your rent. If you need assistance, speak up sooner than later.

Are you going to be evicted if you can’t pay?

If you can’t pay your rent on time due to income loss related to the coronavirus shutdown, are you in danger of being evicted? Most likely, no.

The CARES Act includes a freeze on evictions of tenants for non-payment in buildings financed by federally-backed mortgages (like those subsidized by Freddie Mac, Fannie Mae and HUD). However, this protection only applies to about a quarter of all renters, with the rest funded by banks and private lenders.

For those not covered in the stimulus, most states and a number of individual municipalities have issued their own stays of eviction, many in place between one and three months. Keep in mind, a few locales do require some type of proof you have suffered a loss of income due to the shutdown.

But just because your city or state has passed a moratorium on eviction doesn’t mean all landlords are aware of the new rules. If your landlord does attempt an eviction and you believe you’re protected, check with the local sheriff, who in most cities is the one that carries out evictions and knows the temporary restrictions.

Eventually, you have to pay

Be aware: Just because you’re a beneficiary of an eviction moratorium, doesn’t mean you never have to pay. These provisions are deferments, not cancellations. Just because you can’t be evicted now, doesn’t mean you can’t after the crisis has ended. If you didn’t pay knowing you couldn’t be evicted, plan to pay back any months you didn’t pay once the situation has normalized.

“A moratorium isn’t a pass to skip paying rent. It means that your landlord cannot sue you for nonpayment or pursue the eviction process while the moratorium is in place,” debt resolution attorney and author Leslie Tayne told The Huffington Post.

However, there are a number of housing rights groups advocating a movement to end rental obligations during the crisis, most notably under the #CancelRent banner. The effort is requesting the federal government subsidize property owners so rent can be exempted. While unlikely, renters should keep an eye on the story.

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional financial or legal advice as they may deem it necessary.

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Published at Fri, 17 Apr 2020 14:07:58 +0000

What To Do if You Run Out of Toilet Paper?

Don’t wait until you’re running low to consider toilet paper alternatives. Shoppers hoarding toilet paper during the coronavirus pandemic have forced us all to examine our bathroom habits. Suddenly, a private matter has become a very public conversation.

While there really aren’t any true toilet paper alternatives (that can be safely flushed, anyway), there are other options. With a little planning, conservation and creative thinking, you can handle toilet paper shortages with confidence, minimize shopping trips and help keep your apartment community safe during the coronavirus pandemic.

Shop smart and plan ahead

Stock up the best you can. Add toilet paper to your grocery pick-up or delivery order and look for it every single time you shop. Be reasonable about what you purchase, or you become part of the panic buying problem. You just need enough to get you through two weeks, the amount of time you’ll need to self-isolate if you become ill.

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If toilet paper is missing on the shelves, try ordering it and other staples online. You can also call ahead to check availability at local stores to minimize the amount of time you spend in the building.

In a pinch, you can grab toilet paper alternatives like tissues, paper towels or wipes. These aren’t flushable, no matter what the packages say (more on that later), but they’ll get you through until your next shopping trip.

toilet paper

Conserve what you have

Save toilet paper for using the toilet only. If you’re in the habit of reaching for the roll to wipe your nose, dab at shaving nicks or clean up small spills, now is the time to switch to more appropriate materials, like tissues, napkins or paper towels.

Since these paper products are also in high demand, try using dishrags or towels for spills or a handkerchief for runny noses instead. Just make sure you’re washing them often.

Once you actually need to use the toilet, consider if you really need to use as much toilet paper as you normally would. When supplies are plentiful, it’s easy to mindlessly use a lot of toilet paper. Kids are the most common culprits, gleefully grabbing handfuls at a time, but adults can be surprisingly wasteful, too. So, monitor your own habits during times of scarcity.

Toilet paper alternatives

OK, so you’ve shopped smart and conserved toilet paper and you still ran out. Now what?

First of all, don’t panic. Toilet paper was only invented in 1857, so people have been making do without it for centuries.

Reach for the toilet paper alternatives you’ve already purchased. The most logical and readily available options are tissues, napkins, paper towels, personal cleansing wipes and baby wipes.

Anything other than toilet paper should be discarded in a small wastepaper basket lined with a plastic bag. A scented bag or the addition of a dryer sheet or air freshener will mask odors if you’re squeamish. Take the garbage out more often, just to keep things smelling fresh.

This solution seems strange to many Americans, but a wastepaper basket is common in Europe, where historic buildings and aging pipes mean any toilet paper at all is a strain to the system. If you can handle it on vacation, you can manage during your unexpected staycation.

You can also upgrade your toilet with another European solution — the bidet. A bidet gently rinses the area in question with water, reducing or eliminating the need for toilet paper altogether. Hand-held bidets are an affordable solution for apartment dwellers.

plumber

The consequences of flushing

It can be tempting to flush tissues, paper towels and wipes. But even though they feel like toilet paper, they don’t break down like toilet paper, explains Tom Bigley, Director of Plumbing Services for United Association of Plumbers and Pipefitters. And that creates big problems when they enter the pipes.

“Anything other than toilet paper is going to be a problem because when they design the toilets, they base the engineering on how much water is needed to flush biodegradable paper and solids,” says Bigley. “If it’s not biodegradable, it’s going to leave it behind. It won’t transport the sewage to the sewer effectively. The water goes by and leaves the solids behind, so what happens is we start having stoppages.”

A flood of waste and water in your apartment isn’t ideal under any circumstances. But it’s even worse when you’re sheltering in place. Plus, you might have to wait longer than usual, because plumbers are in high demand.

“They’re getting more (calls) than normal because people are flushing things down. What I’ve been hearing is that people have been using baby wipes, Kleenex, paper towels.” – Tom Bigley, Director of Plumbing Services for United Association of Plumbers and Pipefitters

Personal cleansing wipes often say that they’re flushable on the package. But Bigley says they don’t break down properly and are responsible for many stoppages. That stoppage might not just affect your apartment — it can affect your neighbors, too.

“Let’s use the scenario of a six-story building with, let’s say, 12 units,” says Bigley. “If somebody on the sixth floor is flushing something down that they shouldn’t be, it’s going to have consequences for everyone in the building. The stoppage is going to back up into the first floor. You’re not going to be able to use your water until it’s repaired.”

Plan, conserve and deal with toilet paper alternatives

Since many of your neighbors are working from home and most people are spending more time indoors, this is definitely not the time to flood their apartments and inconvenience the whole building.

A little planning, conservation and toilet paper alternatives will help you navigate a toilet paper shortage until the shelves are fully stocked again.

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Published at Thu, 16 Apr 2020 20:12:23 +0000