Life tends to throw tough curveballs. Whether that is the loss of a job, a trip to the emergency room or an expensive vehicle repair, these unplanned expenses hardships can pose severe financial setbacks. As rent becomes more expensive in many parts of the U.S. (especially here on the East Coast), dealing with the unexpected while trying to keep up with monthly rent can be a challenge.
Many people fear these unfortunate instances will get them evicted. Luckily, depending on their circumstances, renters can establish a payment plan with landlords to ease financial burdens while still fulfilling the obligations of their lease agreement.
Setting up an effective payment plan
Depending on the situation, it can be in the landlord’s best interest to establish a payment plan with the tenant because it helps keep their vacancy rates low. When laying the groundwork for an effective payment plan, its critical to follow these steps:
- Discuss the circumstances: The individual should discuss their financial situation with the landlord and update them on any changes throughout the process.
- Be cooperative: If the landlord is understanding, the two parties can establish a plan that is beneficial for both. It may include a grace period where the tenant is given a timeframe to find another roommate or job. Alternatively, the landlord in some cases could agree to adjust monthly payments until the tenant’s finances return to normal.
- Stick to the plan: Once it is agreed upon by both the tenant and landlord, they must hold themselves accountable.
- Agreed upon consequences: Landlords and tenants should also establish what types of action to take if the plan is violated.
Things do not always go as expected
It can be challenging for people to keep up with all their financial obligations. However, with the right payment plan, landlords can still get their payments and tenants can focus on getting their finances back in order.
When establishing the framework for a payment plan, an experienced real estate attorney in New Jersey can help figure out what is best for both parties and assist in drafting an agreement that works for everyone.