Asking a landlord for a rent reduction is a reasonable thing to do. Rent is one of the biggest costs in any retail newsagency, and when circumstances change it makes sense to talk. But how you ask matters as much as what you ask for.
The first question is a hard one, and you ask it of yourself: are you making good money? A smart landlord will want to see your profit and loss statement. If it shows a healthy, growing profit, your argument may disappear before it begins. Think that through before you knock on the door.
If there is a case, build it before you make the request. Know why you are asking. What is the commercial reason? Gather the evidence and present it clearly. Bring your P&L. Bring your sales figures. Explain the situation rather than simply asking for a discount.
Too many retailers ask before they have prepared. I have seen it plenty of times. Some have no real case. Others have a strong case but never present it, so the request quietly fades away. It is hard to blame a landlord for saying no to an argument that was never made.
The detail matters. What is your occupancy cost as a percentage of revenue? Are sales up or down? Is the location delivering the foot traffic you expected when you signed the lease? Compare this quarter with the same quarter last year, and this half with the same half a year earlier. The Tower Systems newsagency software can produce these numbers in minutes.
Do not be afraid of difficult numbers if that is what the records show. Honest data builds a stronger case than vague complaints.
Remember, too, that landlords are more likely to help a tenant they want to keep. If you pay on time, look after the shop and bring traffic that benefits the stores around you, you are worth keeping. Neighbouring retailers may even support your case, and it is worth asking them.
Preparation is everything here. Have your evidence in hand and a specific number in mind, because a landlord can take a prepared case to their own decision makers.
Walk in ready.