Here's What Happens When You Stop Paying Your Rent

Thanks to rampant inflation (currently 4.0% year over year, per the most recent Consumer Price Index Summary report, but it was as high as 9.1% in June 2022) and inadequate wage growth, many people are having trouble meeting their everyday expenses lately.

For many of us, our housing (be it rent or a mortgage loan payment) is our largest bill every month. Since keeping a roof over your head is paramount to your safety and comfort, being unable to afford your home is a scary situation indeed. Let's take a look at what you can expect if you're a renter and stop making rent payments.

Your landlord will definitely notice

Chances are, when you agreed to move into your home, you signed a lease that laid out how much rent is per month, along with the date it's due (which is likely the 1st of the month, but not necessarily). Your lease also probably states how many days of grace period you get -- for example, rent is due on the 1st, but as long as it's received by the 5th, you're good to go. Whether you rent from a corporation or an individual, your failure to pay rent will be noticed, and chances are, your landlord will get in touch to ask about it, and possibly also send you late notices.

You'll likely be assessed late fees

Along with information about how long of a grace period you get, your lease might also spell out how much your checking account will be dinged by late fees if you don't pay your rent on time. For example, you might owe $25 extra for each day you're late. This means that being late with rent will just get more and more expensive, and if you're already struggling to keep up, this can make a bad situation worse.

You could be evicted -- eventually

Tenant laws vary depending on which state you live in, so you'll have to investigate the matter for yourself. But taking a look at New York, there are set procedures in place for how an eviction might come to pass. TenantHelpNY notes that your landlord must send you a minimum of two late notices before taking you to court to proceed on an eviction. The first late notice is when you're five days late, and the second is sent when you're 14 days late. Only after this point may a landlord pursue an eviction case against you.

In New York, your landlord will start an eviction case by "service of process," which leads to you being served and assigned a court date. You can request an adjournment of this date, and a second will be scheduled at least 14 days later. When you go to eviction court, you'll have the opportunity to make your case (if there's a reason why you're not paying your rent -- for example, your landlord has failed to make necessary repairs to your home and your health and safety are at risk).

The judge could find for you, or you could settle with your landlord (and pay what you owe), or the judge may issue a warrant of eviction. In this last case, your local sheriff will issue a 14-day eviction notice, and you and your belongings will be removed after 14 days. This is a scenario you absolutely don't want to find yourself in.

You might have trouble getting another lease

In addition to being tossed out of your home, if you stop paying rent, it might be harder to get another rental in the future. This could be the case even if you're not evicted, and just pay your rent late frequently. You might be required to provide references to a future prospective landlord, including names and contact information of prior landlords. If you burn a bridge with a landlord by not paying rent, others may not be so keen to rent to you.

Here's what to do if you can't make rent

If you're having trouble paying, here are a few steps to take:

• Contact your landlord: Don't delay, get in touch with your landlord as soon as you realize you're going to come up short on rent money. They may be willing to work with you, or cut you a break temporarily, if you're honest and upfront about your issue (and don't wait until rent is already late).
• Lean on family or friends: Can you borrow some money from loved ones to help cover your shortfall? Be sure to create an agreement in writing so they know you'll pay them back.
• Look to local agencies: You may have a rental assistance program in your area. Head to the National Low Income Housing Coalition's site to see.
• Consider getting a roommate: If your struggle with rent is longer term (and you have the extra space), you might ask your landlord to see about adding another person to your lease to defray your costs.
• Pick up a side hustle or more hours at work: If you live paycheck to paycheck and are only one unplanned bill away from having trouble paying rent, increasing your income can do wonders for your finances and peace of mind.

Take a deep breath, and make your landlord your first call if you're coming up short on rent money. Don't just stop paying and ignore the problem, as that'll hurt your personal finances to a much larger degree.