Looking to lease a small office unit, but management is asking that I have $20k in the bank.
Hello, I’m downsizing my already small business. I’m currently at a 1,400 sq ft unit and can no longer afford it. It’s in a nicer part of town. I’m looking to lease a new smaller space of 800sq ft in probably the least desired area in the county since it’s the cheapest. I talked to management and they want to see I have $20k in the bank. Spot has been vacant for 6 months. I don’t have that much since business has been bad but I’m still getting by. I only have $1,000 in my bank. Would it still be possible to qualify or is having little money in the bank frowned upon.
[{"id": "iw4fp1z", "text": "You can negotiate everything, especially these days.", "replies": [], "depth": 1}, {"id": "iw4g47c", "text": "Having no funds definitely doesn\u2019t look good. They want to know you have the capability to pay rent for at least a little while should your business have further issues. Having it vacant is cheaper then having to evict someone from a space for no payment.", "replies": [{"id": "iw4gcc3", "text": "True, well I have job I just stated at a major well known company in town that pretty much runs this town. I\u2019ll see if they accept my check stubs.", "replies": [{"id": "iw4gv0q", "text": "That would help. They will probably want a personal guarantee as well.", "replies": [{"id": "iw4gy3e", "text": "What does that mean? Personal guarantee?", "replies": [{"id": "iw4hhby", "text": "they get your shit if you don\u2019t pay", "replies": [{"id": "iw4ibng", "text": "Oh I see. Thanks lol", "replies": [{"id": "iw4l7j3", "text": "For small start up and small businesses I require personal guarantees especially if there is buildout required. \n\nIf you only need 800sf and only have $1000 in the bank would you be able to run the business from your house/ apt? From your description of the business it sounds like avoiding a rental expense would be helpful.", "replies": [{"id": "iw4lfwi", "text": "The reason I only have $1,000 in the bank is because my niche got to competitive and could keep up with my current lease. My lease is finally over and don\u2019t have to waste $1700. I have no expenses. I\u2019m making $3k a month at my job. I just started.", "replies": [{"id": "iw4lwdd", "text": "Ok, that job is different this the company that is renting the space correct? If so make sure you properly loan or invest the money into this smaller company to avoid piercing the corporate veil.\n\nBut the company should be able stand on its own or at least have a path to stand on its own for a landlord to be interested in renting to them.", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iw58qho", "text": "The office market is having a bad time with a heavy flight to quality. Settle for a B class office and wait if you have to.", "replies": [], "depth": 1}, {"id": "iw5em7d", "text": "Barrow it short term, family, friends, credit card, what ever it takes to succeed.", "replies": [], "depth": 1}, {"id": "iw5mv2s", "text": "Have you thought about just renting at a place like Regis/ we work etc? Not sure how pricing is now but may be a better bet tbh if it\u2019s in your market.", "replies": [], "depth": 1}, {"id": "iw7oj7f", "text": "Are you sure you really need the space at all? There are lots of other costs associated with leaving one lease space and moving to another. If cash is so tight might be better to shut down and do it from home or storage locker than go through the whole lease process. Even a smaller cheaper commercial lease will have lots of binding fine print and that will likely obligate you to at least three years of payment. If you think it's going to be a stretch why even go there?", "replies": [], "depth": 1}]