Rent banks are created to serve specific populations with a known need for short-term financial assistance to keep them housed. Most individuals who receive a rent bank loan do not qualify for traditional loans from banks, due to a poor credit score, unstable work, and/or not having collateral (meaning something to guarantee the loan).

Most common uses of rent bank loans are:

• Money owed for rent
• Payment of utilities that are overdue
• Security deposit or first month’s rent to help people gain access to housing

People can either be referred by other agencies or approach a rent bank directly.

Many rent banks offer pre-assessments online while others have forms available at their agency. The pre-assessment screens eligible people based on basic criteria. For individuals that meet the basic requirements, they typically meet in-person with rent bank staff to complete next steps and provide key documents to complete the application. Senior staff or a loan review committee make the final decision about loan applications.

Understanding that each site has their own set of criteria here are some of the most common qualifiers:

• 19+ age
• Resident of the community
• Proof of ability to repay the loan
• Experience of a temporary, unexpected crisis
• Demonstration that loan will stabilize the housing situation

Some rent banks provide interest-free loans, some charge a percentage like a standard bank loan, and others charge a monthly flat administration fee. The purpose of the charge is to cover administrative or banking costs but is not meant to be a barrier for those needing the service.

It is common practice among rent banks to allow an individual who has taken a loan to postpone or defer their loan payment as long as they contact the rent bank in advance of the loan payment being due and being taken from their bank account.

This is important because the automation of loan payments means if the loan system tries to withdraw the payment from the account when there is not enough money there, the payment will be rejected (known as “bounce”) and will then attract a charge to the individual of anywhere between $25 and $50 which is called non-sufficient fund (NSF) charges. NSF charges are usually more than the actual loan repayment amount.

• Landlords – Not having to absorb the cost of the missing rent payment and, if the tenant is evicted, incur the expenses of finding new tenants.
• Other Renters – Each time an individual leaves a rental property the landlord is allowed to increase the rental rate (so while keeping a tenant will not free up a new rental space, reducing rental turn-over helps keep rental prices lower).
• Social service Agencies – Fewer individuals seeking support from over-burdened services such as shelters, which in many communities are already at or over-capacity on a regular basis

The most common practice is that rent banks do not provide grants. However, in BC there is some grant money available specifically to help offset the cost of rent. These grants are available to individuals who meet certain criteria:

• The Rental Assistance Program is for working people with low- to moderate-income
• Shelter Aid for Elderly Renters (SAFER) is designed for people who are over 60 years of age who are living on low-incomes in BC.
• The Crisis Supplement is for individuals who are on income assistance, disability assistance or hardship assistance.
• BC Hydro Customer Crisis Grant is for customers how have experienced a temporary financial crisis and cannot afford to pay their utility bill and want to avoid disconnection.