Wall Street Journal: Who's Paying May Rent
MEDIA COVERAGE | ARTICLE |
The Wall Street Journal asked us to create a special Pulse Poll on how small businesses were able to handle paying April rent, given the challenges of quarantines and the Coronavirus. Please read this very well-researched story.
(Published by The Wall Street Journal on April 3, 2020)
By Will Parker
About half of U.S. small businesses haven’t paid their full rent or mortgage yet this month as a result of the coronavirus pandemic, a new survey suggests.
In the poll, conducted on Thursday and Friday by Alignable, a small business social networking company, about 30% of the more than 1,000 respondents reported making no rent or mortgage payment in April, while 20% said they had made only a partial payment.
The remaining half reported paying their entire rent on time. Only a quarter of respondents said their landlord or bank offered a reduction or deferral on what they owed. The survey was of companies with up to 50 employees, including retail, restaurant, auto-repair and other small businesses.
To see the rest of the article, go to the wsj.com site.
Please share your comments on the article below, as this is a very important issue we should tackle together.
Comments (1-10)
We have paid no rent for April 2020. We wrote to our landlord in mid-March when forced to close and asked their plan. They have not done anything and committed to nothing. We are in a state of limbo. We have done the disaster loan application and the payroll protection application through out bank. We have numbered receipts but no other communication.
I have not paid rent for April, my store has been closed , The landlord just told me to get loan. I applied but have not heard back yet.i have been in business for 30 years, this is worst experience I have ever had!i am sole proprietorship, it seems only bigger companies will do better than us small guys.
Fortunately, our landlord approached us right away and offered us a 25% reduction on our rent. I don't know how long that will last, but I am thankful for that now. Every little bit helps. As a precaution, we applied for the PPP loan the very first day applications were being accepted. Still waiting to hear back from the SBA on that.
I paid April rent. Mays rent might be a little trickier. One day at a time.
I had no choice but to pay full rent if I wanted a studio to come back to. Just enough reserves to cover April rent and March salaries minus myself and my son. Working super hard to keep customers via online instruction. Had to offer tuition reduction to keep for April. Don't know if that will keep them happy. reduced tuition means not enough funds for next month's rent and wages. Need PPP to cover next 2 months. After 32 years in business, I never pictured it ending this way.
Our President and his team have made it abundantly clear regarding rent. If you can make rent without jeopardizing your businesses life...make it. If you can’t then you can’t and if you feel you need to hold the cash outlay for rent do so put it other use or set aside to possibly catch up. Much is going to be forgiven by the feds. Rent should be your last concern. Landlords will survive. Period.
As a landlord with more than 12 residences, I suggested to my tenants to pay what they comfortably could. We would both keep records as I defer payments and charge no late fees. They need a home to sequester in. Only 1 has not paid in full. Half have PD in full.so far. Next month? I've paid all my mortgages.and insurances. Not all taxes. Next month???
Right now I am ok. My home is my home office and I have thus far paid the mortgage. They have offered forbearance, but I would then owe them the back rent all at once later. Not likely. I am waiting to hear from unemployment, EIDL, and PPP as well as a few grants I found. What will land and when is the question.
We are open, but operating at 20% since mid-March. We have not paid April rent. We have had no communication from our landlord either. My attorney advised I apply for EIDL funds before contacting them, which we did as soon as the applicaiton was available, but we have heard no response. Seems everyone is in a holding pattern to see how this all shakes out.
In considering deferring my rent - My business can’t personally handle the double rent payment anytime, let alone in uncertain times like this.