Things to Understand about Rent Reduction. Businesses go through multiple cycles of revenue. It is just a part of business. Business owners have the responsibility to consider every aspect of their business to reduce cost or increase sales. Do you know if you are over paying in rent? Is your rent to sales ratio higher than 30 or 40%? If so, what options do you have? Most independent entrepreneurs don’t consider asking for a rent reduction. They feel as if once they sign their lease that it is concrete. Fortunately there are options to consider, if the assessment and leasing terms justify one. . . but the main problem lies in, where to start? Best way to begin is to look carefully at your business economics and to evaluate how you’re business is doing for an x number of months/years. . Evaluate where you can cut costs but still able to maintain your business. Consider a professional, experienced broker to assess the situation for you. Explore whether requesting a rent reduction is reasonable and how to proceed successfully.
If you are feeling hopeless running out of cash reserves to cover the rent for your business, a professional lease negotiator or Commercial Broker may be the answer to your prayers by negotiating on your behalf a rent reduction or early lease termination. GOLDEN RULE RESOURCES has helped many small business owners do just that. Most of the time, small business owners are not aware of the option of asking for a rent reduction or early termination.
Here are some examples of when you may qualify to pose the question:
a) when sales drop and rent increases year after year,
b) if you experience changes in your life forcing you to close down your business or
c) if your business is not hitting sales projections and you need time to re-structure your business model and that will need a little breathing room in the rent until your brand new business stabilizes.
Many Landlords are familiar with rental modifications and might work with you, provided you are able to justify your request, this is where a lease negotiating expert comes in handy. You would need to prepare and be pro-active before it’s too late because it might be a lengthy negotiation process, you wouldn’t want to wait until you dig yourself a whole were you can’t get out of. So if you think we may qualify, please give us a call to assess your situation and begin the preparation process. Relief some of your stress, save your business’s reputation and take advantage of a second opportunity to hit the RESET button. We are here to help you increase your chances for success, give us a click or a call: www.goldenruleresources.com 800.504.3542 for a FREE 30-minute consultation.
Carmen Hall founded Golden Rule Resources LLC with the vision of being a professional broker for start-up businesses, treating them by the Golden Rule, which is “To Treat Others The Way You Want To Be Treated”. Being an expert having over 20 years of experience in the commercial real estate industry, Carmen knows how to cater to multi-cultural first time business owners.