During this pandemic, many businesses face tough times, making rent payments extremely difficult. Some business owners have gone the route of negotiating their rent down so that they can save money and stay afloat.
Jessica Rae of Rae Studios provides key steps to kicking off your rent negotiation conversation!
Tips on How to Approach
Negotiating Your Rent:
Analyze your current financial business situation
- Are you currently using the space? Y/N
- If yes, how much space are you using? Find your percentage and find a comparison of pre-covid and during covid. For example, my percentage is less than 10% financial revenue in comparison to 100% prior to Covid
What is your business mission statement?
- Prepare a casual dialogue to readdress to your communication to your landlord. Remind them about your commitment and contribution in wellness and your surrounding community. Create a compelling story about your mission and goals.
What are your current losses since COVID-19, Shelter-In-Place
- Keep it straightforward, your landlord needs to understand and see the financial loss to understand how your current financial situation is.
What is your commitment to your business at this time and how do you plan to move forward
- List our what you are currently doing to keep your business and clientele active
- Do you plan to open past COVID? If so, how do you plan on reopening. You will need to scale how you plan on reopening your business to present a rent reduction, rent forgiveness proposal.
Prepare your proposal to the landlord using the above information
- Request for a meeting so that the landlord can hear and feel your sincerity.
- Have all your documents emailed prior to your call.
- Present your rent deduction, rent forgiveness proposal.
- What’s in it for the landlord, always consider them and offer a scaled rent proposal that will allow you to grow your business over time while meeting your landlord’s rent expectations.
Rae Studios Mission Statement
Rae Studios, our mission is to merge the ideologies of popular dance culture by bridging fitness gym and traditional dance studio mentality into a place that welcomes all levels of dance and fitness in a healthy progressive environment. Our goal is to provide San Francisco dance seekers with community, growth and participation through artistic outlets of music and movement. Our culture is simple; create a space for dance and community to thrive, water the roots of our passion, fuel our dreams by action, and inspire others to do the same.
Jessica Rae is a minority woman-owned business, movement & entrepreneur mentor. She is the creator and founder of Rae Model & Talent Agency LLC & Rae Studios based in San Francisco, CA. You can catch Jessica teaching weekly inside her virtual platform and as well as her personal platform.