What Happens If You Can’t Pay Rent on Time?

Everyone faces financial difficulties from time to time. Short of money leads to several problems such as unable to pay the utility bills, school fee, medical bills, insurance cost, and house rent. Failing to pay house rent consistently is the most alarming one because it involves severe legal implications. 

These implications can potentially rain your future & harm your credit rating. In case you are having financial problems and have missed out the rent payment, it means you owe the rent to your landlord.

What Happens If You Can't Pay Rent on Time?

Whenever such a situation arrives, talk to your landlord straight away or the real estate agent if you have rented your place through an agency. Pay them whatever you can and request the time to pay the rest of the amount. 

There are a few steps you can take to avoid legal actions. But before discussing them, let’s have a look at the process of renting.

How do you rent a place?

Whenever you rent a place, it does not matter commercial or residential, you sign a contract or an agreement. A lease agreement is defined as a contract between the landlord and the tenant stating the clauses, monthly rent, and the duration for which the place has been rented.

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Lease agreements are available online, so it is better to sign them electronically rather than on paper. Because if you sign them online, you can save the agreement in your device and use it anytime. 

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Many online e-signature solutions offer you services regarding your lease agreements and ensure that your documents are legally binding. One such service provider is CocoSign.

In the world of digital signatures, CocoSign occupies a top position. You can use it to sign the lease agreement and save it in your dashboard for later use.There are thousands of lease agreements present on the official website of CocoSign.

After creating a free account, you can check CocoSign for the lease agreement template.

You can find & customize your rental documents through CocoSign. A lease agreement usually contains rent time, rent amount, leaser & lease information, rent due date, security deposit, & pet policies. Other than lease agreements, CocoSign offers some more lease templates for business, legal, & other purposes.


What happens if you fail to pay rent?

Failing to pay rent puts you in a danger zone where your landlord can evict you straight away. Here are a few possibilities when legal action against you is possible you are at risk of losing your place:

  1. You always pay the rent fees late
  2. You already owe rent to the landlord
  3. The duration for which you have rented out your place has ended.

In all these cases, the court will generally allow your landlord to send you the notice to leave the place within two weeks. This is possible in all kinds of lease agreements, no matter if they were assigned electronically or manually. 

Here’s what you need to do if you fail to pay rent due to financial or other problems

Reach your landlord with the agreement

If you and your landlord do not live far away, you can reach the landlord with the rental agreement. But visiting personally can become very tough when one of you is not around. In this situation, you can take advantage of the lease agreement you have signed online through CocoSign.

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You can send this document to him via the internet. Once he has the agreement before him, he may agree to negotiate with you rather than going through the eviction process. 

It is also very much likely that the landlord offers you a repayment plan, which you have to stick on to ensure that you can stay in your place. This repayment plan can also be designed using CocoSign, and both parties sign it online after agreeing to all the terms and conditions.

What will happen if the landlord does not agree with a repayment plan? 

If you have a good history of paying rents in time, then there are chances that the landlord will agree for the repayment plan. But in case he does not accept your offer even after receiving the documents online or in the hard form, just start keeping the money aside in the name of rent. 

Keep a record of how often and when you tried to reach the place owner and how much you wanted to pay him? This might help you later if you are called for some legal inquiry.


Financial crises are unpredictable; therefore, it is advisable to save some extra money to use in the crisis, especially if you don’t own your place. But if you are renting out a place and fail to pay the rent for a few months due to bad financial conditions, you should visit your landlord with the agreement as soon as possible.

This will help you find a way and make the chances of eviction or any legal action very unlikely.

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Harinder Kaur has completed her M.tech in Computer Sc. & engg. from Kurukshetra University. She has done research on Mobile ad hoc networks as project fellow at SMVD university. She is currently working on her new startup dealorcoupons.com

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