How to Boost Your Rent and Lease Options Throughout COVID-19


Given the prolonged uncertainty brought on by COVID-19, many industrial businesses are confronting a new financial challenge--managing rent payments. For retailers, meeting rent due dates while undergoing temporary store closures or decreased foot traffic is harder, and causing a new type of financial strain.

Having said that, there are steps you can take to find relief. Taking early action to understand your financial situation, reviewing your rental alternatives, tracking local legal developments, and communication with your landlord can help you get more accessible cash for your organization.

Here are a few actions you may take.

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1. Know your financial health

Obtaining a clear picture of your company's money run rate is a terrific step to consider when assessing your commercial lease in this uncertain time.

We assembled a financial planning tool that will assist you recognize the potential effect of COVID-19 on your company and see immediate next actions you may take, such as applying for federal help .

2. Review your commercial lease arrangement

  • Review your commercial rental to understand whether there's specific language pertinent to what's happening and what choices you have within the conditions of your contract. Whether you seek grounds by means of this contract as a basis for relief, it is important to understand your arrangement with your landlord. There may be limits to what your landlord is legally and financially allowed to do, particularly if the landlord's creditors are included in the arrangement.
  • Search for these phrases and terms on your rental agreement to help discussions with your landlord and give the basis for relief:
    • Conditions that apply directly to the COVID-19 pandemic:"epidemic,""pandemic,""infectious disease" or"public health crisis."
    • Pay especially close attention to clauses relating to"force majeure," commercial insurance, subletting/licensing,"go dark" default,"condemnation/casualty" provisions, late payment penalties, co-tenancy requirements, or insolvency.
  • You might want to consider speaking with a lawyer about your commercial rental to understand what choices are available to you. Bear in mind, this is sometimes time-consuming and costly so that it depends heavily on your particular set of circumstances. If you can not afford a lawyer, there are legal services which do free consultations with small business owners, such as small company practices at many law schools and non-profit associations.
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3. Speak with your landlord about reducing rent

You might want to go over rent concessions, forgiveness, or delays with your landlord until things have stabilized after working through the steps above.

  • Rent forgiveness: If there is any possible you won't have the ability to cover your forthcoming rent invoice, reach out to your landlord as soon as possible. Being proactive can help you manage the situation and plan for the future. Now, more than ever, we will need to rely on our community for assistance and relief from a month's rent can go a long way. Think about a thoughtful email to your landlord describing your situation and the need for instant relief. The plan of action most appropriate for your company can fluctuate, but considerate and timely communication with your landlord will be crucial.
  • Partial payment or lease deferral: if you're not able to pay the rent in full, consider seeking partial forgiveness, establishing a payment plan to defer rent payments, or applying portion of your security deposit for your existing payment due. By way of example, you might have the ability to bring any missed payments as additional months at the end of your rental. Landlords will likely be more receptive to you paying at least some of the lease with a schedule set up for the outstanding balance in comparison with a payment suspension.

Finding a way to initiate a conversation with your landlord about alternative plans for paying rent may prove challenging. Based upon the situation and the present connection with your landlord, your approach may vary. Keeping the following in mind may help you structure your approach:

  • Openness and honesty: Being open, honest, and succinct can assist your landlord comprehend the gravity of this situation, and empathize with you.
  • Empathy: Showing an understanding and willingness to learn about the situation your landlord finds herself could offer amicable grounds for working to locate a solution.
  • Cooperation: Being ready to collaborate with your landlord in devising an agreeable solution will be crucial in maintaining a great relationship and making a sustainable plan.

Consider how your existing communications and activities during this period could be looked at by an arbitrator in the long run in case there is a sort of dispute event, as you maintain a record of correspondence with your landlord.

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Your landlord might want to find that you've sought out national, state, or local relief plans or your own financials prior to entering into any discussions with you. This is a chance to remind the landlord of why they ought to work together with you by showing you have taken all of the correct steps together with a strong payment history or your credit score.

As you maintain a record of correspondence with your landlord, consider how your existing communications and activities during this period could be looked at by an arbitrator in the long run in case there's any sort of dispute proceedings.

Example email to landlord:

Dear Ms. Wall,

We hope this finds you well during these unprecedented times. We are reaching out about lease payments for the Main St Boutique as your tenant in 123 Main St, Suite #100.

With California's statewide shelter-in-place going into effect the 19th of March in reaction to COVID-19 together with non-essential business closures, we have seen a material decrease in sales volume as a small company heavily reliant on consistent foot traffic. We expect the effect of the virus and these emergency policies to continue to influence sales to our shop for the near future.

In the past two weeks, we have changed towards online sales channels, and are working to find ways to reduce costs and create new revenue streams. We realize our money runway if no additional revenue or cost changes are made. We are exploring all national, state, and local emergency loan relief programs to help cover our operating expenses including rent and payroll.

According to our current financial picture, we kindly ask researching a payment plan for partial rent due until this situation improves in the kind of payment installments of $500 (20 percent of the monthly lease ) every 2 weeks. We're open to exploring a longer-lease term or a short-term rental amendment to defer the outstanding balance until the end of our current term. This would help us reduce monthly costs during this time to make sure we can remain as your tenant for many years to come.

We know that these times aren't easy for anybody, and we thank you in advance for the thought. We hope you're staying safe and look forward to hearing from you.

All the best,
Taylor
Owner of Main St Boutique
-LRB-555-RRB- 123-4567

4. Stay informed on local and state legal developments

  • Follow advice from your local and state authorities , and understand some regional restrictions on travel or trade.
  • Get more information from the chamber of commerce on your nation and from the regional Small Business Administration (SBA) office. You'll find updates on how each State has reacted to COVID-19 through emergency actions on the National Governor's Institutions site.
  • Pay careful attention to local and state grants, eviction protections, and other governmental directives to assess their influence on your businesses.

5. Explore additional ideas & tools from Faire

In case you have business interruption insurance, your coverage could include rent-related coverage. Each policy is different, and lots of policies might require physical loss or damage for policy. But, reaching out to your insurance agent to find out if you need to file a claim is the ideal first step to understand what's perfect for you.

More also:

https://www.connectpos.com/shopify-vs-magento-which-one-is-better/

https://www.connectpos.com/pos-review-connectpos-vs-amasty-pos/

https://www.connectpos.com/top-pos-system-for-supplements-nutrition/

https://www.connectpos.com/pos-solution-for-toys-hobbies-gifts-retail/

https://www.connectpos.com/shopify-vs-woocommerce-ecommerce-platforms-review/

https://www.connectpos.com/5-sales-channels-of-an-omnichannel-business/

https://www.connectpos.com/6-biggest-business-trends/

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