Small businesses and rent problems amid coronavirus crisis

Susan (Community Support) Customer Success Manager, Brainsy, Inc.
Posted on 3/20/2020 3:32:02 PM

Many small businesses may need to think about how to control rent costs in the face of the COVID-19 crisis. An article from Axios provides a good starting point for thinking about the issue.  See: Small businesses and rent problems amid coronavirus crisis.  Some landlords are already beginning to provide relief for their tenants. Although many experts indicate exemption under force majeure is unlikely, some suggest there's an outside chance of getting relief under this provision.  

Also, as a small business, you may have a little more leverage that you realize. According to this article "Real estate investors emphasized that short-term delays on rent are meager compared to the income from long-term relationships — lease terms are typically for 10 to 15 years."  See: https://finance.yahoo.com/news/landlords-offer-retailers-some-relief-amid-the-coronavirus-outbreak-210517171.html 

Recommendations? If you're in distress, be proactive and work with your landlord to try and get some flexibility on your lease. Then you can focus attention back on other creative ways to maintain your business.