What to do when you can’t pay the rent

Tell your landlord

It might sound counter-intuitive, but honesty really is the best policy in this situation. After all, landlords are people too. If you notify your agent or landlord as soon as you find yourself in genuine financial difficulty, hopefully you’ll be able to negotiate a payment plan (such as smaller instalments) for a specified term that will benefit everyone involved. That is, until you can get on your feet again.

Get a roomie

Provided your landlord agrees, consider getting a roommate to help pay the rental costs. You could advertise a short-term lease to cover the time you’re in difficulty, and that way you’ll get the place back to yourself when things are going right again.

Apply for Centrelink payments

You may be eligible to receive rent assistance from Centrelink. And if you are currently receiving Centrelink payments, consider applying for advance payments due to financial difficulties.

Apply for an interest-free loan

Some states offer government-funded interest-free loans under certain circumstances. For example, NSW, WA and VIC are some that offer bond assistance loans, which can help with the upfront costs of new rental.

Breaking the lease

If it looks as though you’re not going to get back on your feet anytime soon, it  might be worth calling it quits when you’re ahead. You can send a written letter advising of your intention to terminate the lease and while you may lose your bond for non-payment of rent, you’re better off finding something within your means – and the sooner, the better.

With these tips, hopefully you’ll be able to find a way to recover from your current situation, or say goodbye to your old place and hello to a new and more manageable lease agreement.