- S
- J
Hello, my name is Mel. My son and I moved into our current home last July. It was a Godsend, perfect timing, stars aligned, everything we needed and wanted. We live right up the street from the ideal school and within a decent distance from work, daycare, parks, shopping, you name it. If I wanted to buy a house in California, this location and style would be top of my list.
BACKGROUND:
We rent this house but know it is home and treat it with the utmost care. However, our living here is in jeopardy. I get paid twice a month from my primary job--typically a day or two early. Therefore, I usually pay my rent on the earliest date possible. For example, my payday is the first, but I receive my direct deposit two days early, so I pay rent 1-2 days earlier. Fortunately, my lease allows for a 5-day grace period due to the lack of electronic payment options and the property manager's payment location. I hadn't made a late rent payment since I started paying rent when I moved out of my parents' house at 18 years old, until now.
When it rains, it pours. Last December, I had one financial emergency after another until my funds, savings, and loan options were exhausted. Childcare costs went up aggressively at the worst possible time; my reliable 20-year-old car finally gave up; After weeks of paying for rideshares and auto repair, I had to finance a new car and was fortunate to be able to. All of these issues are in addition to years of nonexistent child support. On top of that individual's emotional and verbal abuse, I started legal action. Another headache and stressor.
The homeowners and property managers were understanding. I got back on track and ahead in January. I met with financial advisors and have regularly scheduled meetings with them. I reestablished savings. I redid my budget and cut out unnecessary expenses and bills (i.e., streaming sites, fast food, etc.). I added secondary income options that don't affect my primary job or parental duties (i.e., Instacart, secret shopping, dog walking/sitting, food delivery, and passive income through surveys, rebates, rewards). I even added self-care and exercise routines to my schedule.
Despite minor issues, like late maintenance, I fell in love and knew I did not want us to move again until we had to leave California the first week! I sent a letter saying as much, hoping to renew my lease for the next couple of years, to the owner with February rent paid on the 3rd. Or so I thought.
I received several voicemails this week--20 days after the first--claiming I did not pay rent for February. The highly late notice came after I had already received my second paycheck for this month and spent the majority of it as budgeted: namely my lovely new car note, utilities and bills, and of course, childcare fees. I have called my bank and checked my account. Unfortunately, I have not received the $3000 cashier's check back to my account; there is no notification or record of anyone cashing or depositing the funds. I am at a significant loss and in a hole, I cannot see my way out of.
THE ISSUES:
- I am the only source of income.
- My 4 or 5 side jobs cannot generate enough money to cover it in time. ( I am certainly trying, though.)
- I do not have the funds allocated initially.
- I am past my second pay date.
- I do not have an extra $3000 (plus $150 late fee) lying around.
- I still have to pay my March rent with the upcoming paycheck on the first.
- I maxed out my two credit cards.
- I am unable to receive another loan.
Nevertheless, the homeowner and the property manager did not receive the rent; strike two.
Financial issues aside, I started the month off requesting to renew my lease in July for two years; I am ending the month hoping we can stay for at least another month and, more significantly, for the remainder of this lease.
PLAN:
To pay the late rent and make future payments without any issues, I will do the following:
- At the earliest opportunity, I will pay the rent, by all available and necessary means.
- I will continue actively participating in all available means of supplemental income.
- I have applied for additional subcontracting and non-conflicting options for extra income (i.e., Task Rabbit).
- I will meet with financial advisors earlier than initially scheduled.
- My tax refund, once received, will be used to pay down debts.
- I will quickly pay down my credit cards and maintain them at or below 30%.
- I will maintain the goal to pay off my car note within two years. My car would have to be paid off by January 2024.
- I will allocate as much of my extra funds to paying down loans.
- I will restore savings and emergency funds. I will maintain them.
- I am working on correcting my credit issues and disputing errors.
- I am taking practical financial wellness courses.
- I am cutting out any extra expenses that are not necessary, such as fast food.
- I must get my child support case progressing to the courts or notarized agreement.
- If an option, I will pay half the rent by the 15th of the month prior.
- Once I can pay the late rent, I will present my proposal to the property manager to improve how rent payments are received, tracked, and ensured. I have drafted an addendum to my lease for myself, the owner, and the property manager to initial or sign, constituting agreement. I provided an electronic and paper ledger template for tracking said payments. It lists electronic payment options they can adopt with comparisons and potential costs to the owner or tenant. It has a cover page with the supported reason for the changes (citing this occurrence). It has a "hand-to-hand" payment and written receipt requirement. "Hand-to-hand" means I can no longer leave the cashier's check in the secure slot; I have to hand it to the property manager and receive a receipt. Another requirement is that, should the rent not be received by the 5th of the month. The property manager must notify the tenant of nonpayment no later than the next business day. The icing, so to speak, will be an early or 1st-of-the-month payment guarantee for the remainder of this lease (April-June); I will agree to pay half month's rent (from my second paycheck) before the 1st or rent in full before the first. The latter is dependent on whether my payday is early or just on the first.
USE:
The request is for $4,500 for the $3,000 rent, $150 late fee, and the rest as an expense cushion due to the need to use the entirety of my next paycheck for March rent. I will not be able to pay for the essentials until my second pay check in March, for childcare $690/mo, utilities $375 (gas, electric, water/sewer/refuse), groceries & food $150-$200, bills, and other mandatory expenses. Of course, I will continue working my secondary jobs to supplement income as well. Another use for the additional $1,350 would be to prove to the homeowner that I am reliable, earnest, and apologetic; it could be an advance, partial payment for April rent. Maybe I could regain their confidence and request that lease renewal down the road, with consistent early and on time payments again. The request is for $4,500, but anything helps and it is much appreciated! Regardless of the outcome I will be paying it forward.
Thank you for reading our story and for any help or even prayers. I would appreciate additional advice for making ends meet and beat them, on top of or in lieu of my aforementioned income supplements.
THANK YOU!!!