FINANCIAL PACKAGING BLUEPRINT
FOR RENT RELIEF
August 15, 2024
Shane Minnis
You never get a second chance to make a first impression…
Assuming you want to get a great deal and maximize ROI on your next lease I’m going to help you make a solid first impression 🙂
A fundamental component of putting your best foot forward is providing a clear and compelling financial picture to landlords to address their risk concerns up front.
This helps you in multiple ways, such as:
- Higher likelihood landlords will lease space to you.
- Supports better terms (particularly security deposit, tenant improvement allowance and other concessions).
- Differentiates your offer against competitive offers for the same space.
If your company is experiencing hardship and you’re in need of rent relief as a lifeline… I recommend gathering and considering the following information as soon as possible to be prepared when opportunities arise…
And to get a leg up should you find yourself in a competitive situation:
1) Start Here
First, for additional background, insights, and helpful resources read my blog post on Tenants Negotiating Rent Relief.
2) Your Narrative
My recommendation… be transparent and candid. This can be in the form of a formal letter or an email, either way you should write it down so your landlord knows you’re serious and prepared. It doesn’t have to be long either, but it should summarize your current situation, the concession(s) being requested, how the concession(s) will support the continuation of your business and ultimately why the landlord should consider this request.
3) Supporting Details
Prepare any documentation or other objectively verifiable means that support your narrative – such as your sales pipeline report, accounts receivable, etc.
4) Outside Relief
Have you tried to secure outside relief (such as federal, state or private options)? If so, provide details.
5) Financial Statements
Last 2 years + year-to-date income statements, balance sheets, and cash flow statements for the entity on the lease. It would also be helpful to gather current bank statements.
6) Personal Guarantees
Is this something you’re willing or prepared to provide? If your business is a new venture and/or self-funded then don’t be surprised if landlords request personal guarantees.
7) Personal Financials
Last 2 years tax returns, current financial statements. Don’t be surprised if your landlord requests you complete a credit application and runs a credit check.
8) Business/Profitability Plan
What’s your business plan to regain profitability over the next 12 months? Simple and high level will work fine.
9) Projected Financials
What’s your current burn rate? What’s your plan to reduce expenses? Do your projected financials support your business/profitability plan?
10) Concession Repayment Plan
What’s your plan and anticipated timeline to repay landlord for the requested concession(s)?
11) NDA
If you require a non-disclosure agreement (“NDA”), then you’ll want to have this prepared in advance.
12) Other
Any other helpful details, insights, further descriptions, background or experience of investors/partners, materials, etc. The main goal here is to tie everything together and showcase your financials, team and investment outlook in the best possible light.
While the above information isn’t necessarily required, it will certainly help position you for the best deal possible and mitigate potential landlord concerns. Feel free to reach out with any questions, comments or to discuss further.
Dedicated To Helping You Get A Great Deal + Maximize ROI On Your Next Lease,
– Shane Minnis
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