5 steps to take if you’re struggling with rent

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Needless to say, rent is an important bill – it’s your safe place, your home, your pad. It’s often one of the biggest regular payments you’ll need to make. Unfortunately, many young people are worried about rent payments or already struggling.

recent report by the Tenants’ Union of NSW and Youth Action found that rental housing affordability was a big concern among renters under 30, with 84% of respondents selecting the cost of rental properties as the issue that mattered most to them.

The report also found that younger households are more likely to spend more than 30% of their weekly income on rent compared to older households. This massive portion of income is used widely as the benchmark for housing stress.

If your main source of income is a government payment, the situation can get even tougher: Anglicare’s Rental Affordability Snapshot found that from 74,266 rental listings across Australia, only 1.2% were affordable for a person earning the minimum wage. Just three rentals were affordable for a person on JobSeeker and none were affordable for a person on Youth Allowance.

 

Given so many people are struggling to pay rent, it’s important to know that there are free resources to help you figure out what your options are and get back on track.

What are some steps you can take if you’re struggling to pay rent?

 

1. Make it a priority

Rent should be a high priority payment. After all, it’s essential. If you fall behind, keep paying what you can afford. Return to normal payments and catch up on missed payments as soon as possible.

You may be eligible for a utility relief grant to help pay your utility bills and free up money for rent. Also check if you can get food, transport, phone or chemist vouchers from an emergency relief service near you – find your closest service on the Ask Izzy website.

 

2. If you receive a Centrelink benefit

Check if you’re eligible for Rent Assistance. These payments are income top-ups to make rent more affordable for low-income earners.

You could also arrange to have your rent taken directly from your Centrelink payment through Centrepay. Your real estate agent needs to be registered with Centrepay first.

See if you’re eligible for a Centrelink advance payment, which is an interest-free loan available to people on a Centrelink income. But remember that if you use this payment for overdue rent, you need to be able to afford both your current rent and additional fortnightly repayments on the Centrelink advance.

 

3. Contact your landlord or rental agent

If you’re about to fall behind on rent, or you already are, tell your landlord or rental agent and let them know you want to negotiate a repayment plan. Ask them to take your hardship into consideration and explain how you’ll be able to catch up on missed payments.

It’s best to contact your landlord or rental agent in writing, so you have a record of what happened. For example, you might have a phone call first, but confirm the conversation by email. If your landlord or rental agent rejects your offer, you can use these records as evidence that you tried to resolve things.

Stay in regular contact with your landlord or rental agent so they know what’s happening.

 

4. Contact your local tenancy advice service

If you can’t come to an agreement with your landlord or rental agent, or if you’ve been asked to vacate, call your nearest Tenancy Advice and Advocacy Service for free information.

They’ll know what’s happening locally and can give you tips about how to negotiate with your landlord or rental agent. They might also be able to help you find grants or concessions.

 

5. Contact the National Debt Helpline

If your rent problem hasn’t been solved or you’re feeling overwhelmed, call the National Debt Helpline on 1800 007 007 to speak a financial counsellor. The service operates on weekdays, 9:30am-4:30pm, and live chat is available in some areas too.

ndh.org.au, has free guides and resources with specific information about being evicted and breaking your lease on the rent page.

Financial counsellors aren’t judgmental about your circumstances – they offer you free, confidential and independent advice and assistance.

 

Words: Georgia Lenton-Williams (the National Debt Helpline)

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