Here’s What to do if You Can’t Pay Rent Due to COVID-19

As COVID-19 continues its march across Canada, citizens are experiencing devastating economic impacts. In March, there were over a million job cuts, and April’s numbers were doubled from the previous month. If people who have experienced a reduction in work hours are figured into the employment statistics, 5.5 million individuals have forfeited all or part of their income due to the pandemic.

People who experience a loss or reduction of income during the COVID-19 crisis have to make very difficult choices about where to allocate the money they do have. The choice between food and rent is not a real choice. Foregoing paying rent is a necessity for many. If you find yourself in this position, you are far from alone. It is important to be proactive in managing difficult financial challenges, but there is also help for you from the Canadian and Provincial governments. 

Navigating the Economic Landscape

The Crown has developed an Economic Response Plan in response to COVID-19. The policy was devised as a means to assist citizens, businesses and sectors facing hardships in these unprecedented times. Some of the measures taken include:

• Increases in the Canadian Child Benefit

• Temporary increases to essential worker wages

• Assistance for indigenous people

• Improving access to food support

Familiarize yourself with the services provided in the Emergency Response Plan, as there may be additional help for you that will ease your financial strain. Furthermore, assistance is offered from the Canadian Emergency Response Benefit (CERB) and Provincial government policies for renters. It is also imperative that you speak with your landlord.

Apply for CERB 

COVID-19 financial assistance is available through CERB. If you have lost your job due to the pandemic, be sure you file for the benefit immediately. Expect a delay in receiving your money because of the large numbers of applicants. Those who are eligible receive $500 a week for up to 16 weeks.

Understand Provincial Policies

Provincial governments have enacted legislation that ensures tenants cannot be evicted due to the inability to pay rent during the current crisis. Some provinces have taken additional measures to assist renters through financial benefits for rent or rent deferment plans. Act early to apply for programs offered through your province.

Talk to Your Landlord

While a tenant cannot be evicted due to the inability to pay rent because of the COVID-19 crisis, it is still important for you to talk to your landlord. You might be able to negotiate a deferment or rent reduction. If you paid a last month’s rent deposit when you moved in, ask to utilize that for the current month. Any negotiations should be conducted in writing. When you speak with your landlord, understand that he or she, too, will be experiencing financial difficulty.

Being confronted with the realization that you cannot pay rent adds to the stresses COVID-19 poses. Take advantage of the government assistance programs offered and be proactive in speaking to your landlord to help ease financial strains.