One of the biggest expenses many small businesses face during this unprecedented time is the cost of rent and space. In the face of the current health crisis and resulting economic tsunami, many businesses will need to renegotiate their rent to survive. If you are in that situation, be sure to be prepared. We have summarized recommendations drawn from several recent articles on the subject for you here:
1) Have A Plan.
Know what you need from your landlord and for how long. Like any negotiation, it may be helpful to ask for a bit more, so that you have room to make concessions. However, don’t overreach or your landlord may not take you seriously.
2) Start Early.
It will be much harder to negotiate if you have already missed a payment. Get ahead of the problem so that you are not negotiating from a weakened position.
3) Sing Your Own Praises.
Remind the landlord of why they should work with you. Tell them about your spotless payment history and/or your strong credit score, remind them that you keep the premises in good repair, refresh their memory about any investments you have made in the property.
4) Think & Speak Long Term
Point out the benefits of keeping you as a tenant, which won’t happen if your business fails. Given that the economic downturn is widespread and not limited to any one industry or geographic locations, or your specific business, there will not be a lot of other business owners out there eager to take over your space should you have to close your business.
5) Offer What You Can
Bring something to the table if possible. While cash concessions may not be possible at this time, there may be other options like a longer-term lease, that you could offer to the landlord.
Check out these resources for more tips on negotiating with your landlord:
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