By Guest Writer Jennifer K. Halford, Esq.
Not paying the rent for your commercial lease can have long term negative consequences for your business. A negative credit report can affect your application for a business loan and for the lease of another location.
Plus, your personal credit can be affected. You are still liable for the rent if you personally guaranteed the lease. This means your personal assets, bank accounts, and home are at risk.
So if you can’t pay your business rent, what do you do?
There are options if you can’t pay your commercial lease or you anticipate that you will not be able to. Here are some steps to protect yourself:
Talk to your landlord early on: Don’t forget that your landlord is also business owner. The economy is affecting the commercial real estate market and your landlord’s business too. In this economic climate, your landlord may be more flexible and willing to negotiate if you show that you are trying to fix the situation before you fall too far behind in rent payments.
Try to renegotiate your rent: Talk with your landlord about a decreased rent for a period of time. If your business generates more income during certain months, ask if you can pay more rent during those months and less rent in your slower months.
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Civil Rights
Block on Trump’s Asylum Ban Upheld by Supreme Court
Criminal
Judges Can Release Secret Grand Jury Records
Politicians Can’t Block Voters on Facebook, Court Rules
