Laid Off from Work: What If You Can't Pay Your Rent?

Job layoffs have always been a problem. Americans have been receiving layoff notices for years. However, these layoff notices have significantly increased. Getting laid off from your job may come as a shock. If there is one thing we have learned it is that no one is immune. There is always the risk. Unfortunately, it is a risk that has damaging consequences. What if you can't pay your rent due to being laid off? What should you do?

Start the process to receive unemployment benefits right away. Since you were technically laid off from your job and not fired, you should be eligible for unemployment benefits. Some states have a small waiting period. As soon as you can apply for unemployment, do it. Yes, the money you receive in weekly unemployment checks will not be what you were making before. It will only be a fraction of your previous paycheck, but it is still much needed money. This money can hopefully pay your rent.

Tell your landlord that your unemployment will be arriving soon. Since the price of everything from food to gas to clothes has been steadily rising, many Americans had to dip into their savings. Some have nothing left or had nothing to begin with. If the paycheck you will no longer get was to be used for your next rent check, speak with your landlord. Calmly state the position you are in. Mention you were laid off from your job and do not have any savings to pay rent. State your first unemployment check will arrive on X day and you will make payment then. You may be charged a late fee, but hopefully your landlord will understand.

Use your severance package to pay for rent. Some employers provide their employees with adequate notice. This is occasionally referred to as a pending layoff notice. You will work for a set amount of time, like 2 months, and then are officially laid off. In this event, save your money and spend it wisely. Apply it towards rent. If you are immediately laid off, your company is likely to provide you with a small severance package. If you are worried that you can't pay your rent due to being laid off, save this money. If you must, put it in a separate checking account and apply towards your rent. A separate account will make it easier to not touch the money and spend it on impulse.

Avoid paying your rent months in advance. Whether you get a severance package after being laid off or stockpile your last few paychecks after a pending layoff notice, you may consider paying off your rent for months to come. It sounds like a good idea. You get it out of the way. It is taken care of. You don't have to wonder what if you can't pay your rent due to being laid off. However, the bad economy impacts many people. Millions of homes are being foreclosed, including apartment complexes and multi-family homes. Many renters don't find out until it is too late. What happens if you pay six months rent in advance and find out two months later the property was foreclosed on?

Look for a cheaper apartment. As previously stated, you will get unemployment benefits and it is likely you will find a new job. You will not be jobless forever. However, it will be a rough ride. For that reason, one of your best choices is to find a new apartment to rent, preferably a cheaper one. Since you are now unemployed, look outside the city or town you are in. In some areas, one city may charge $1,000 in rent, but 20 minutes away in another town, the average rent can be half that.

Talk to your landlord about releasing you from your lease. The problem that many laid off workers face in finding a cheaper apartment to rent is their lease. Most renter's sign a rental lease. This usually states they will be in the property for a set amount of time, such as six months or one year. You might assume you are stuck, but you may not be. Talk to your landlord. Kindly explain the situation to him or her. The best approach is to try and scrounge up enough money for one or two months rent. With this approach, you aren't leaving them right away. You still provide some notice. This gives them adequate time to make any needed repairs, show the apartment, and find a new renter.

If moving to a cheaper apartment is your only option, such as if your unemployment benefits will not cover your rent or if you do not anticipate finding a new job right away, make them see the severity of the situation. Unfortunately, not all rental property owners do. It is important to remain kind and calm at all times, but get your point across. Ask them the very same question you wondered yourself "what if you can't pay rent due to being laid off?" The answer is you can't. Even if you pay what you can, it may not be enough. Your landlord isn't getting all of their money and you will likely be served with an eviction notice, forcing you to move. They may not want to see it at first, but the end result is the same.