How to negotiate $9K rent arrears with new property manager?

M

malerieserg

New Member
Hey there! I just wanted to ask for a bit of friendly advice—maybe a quick PM on here—about the best way to handle negotiations.

To keep it short and sweet, I started my own business last year, so it's been about 11 months now. Being totally new at this, well, pretty much everything that could go wrong, did ‍♂️. Between that and getting customers on board, it just took a little time to find my footing.

I’m 30 and it’s my first time running a business—of course, if I’d known then what I know now, I’d have made sure to save up a bit more,as a backup. But you live and learn, right? It’s all been part of the journey.

So, early on, I fell about 2 months behind on the business rent because, as a newbie, I had quite a few bumps in the road—plus some unexpected building issues and a big bill for something major. All up, I was around $12,000 behind. Over the last 7 months, though, I’ve been paying everything on time and even a little extra, so I’ve managed to bring the arrears down to about $9,000.

The real estate agency just got a new property manager, and they’re asking for the whole amount cleared today. The business has been running for 11 months now and it’s actually doing really well and growing steadily each month—it’s just this old arrears that’s the sticking point.

I did supply a cash bank guarantee to the agency for $9,500, but they’re saying they won’t use it, even though the lease says they can draw on the bank guarantee if I’m in default.

What do you think I could say to negotiate a friendly arrangement with them? Or should I consider just closing the business down? I’ve got around $70k worth of equipment in there, so I’d hate to show up one day and find myself locked out.

Thanks a bunch!
 
If the bank taps into that guarantee, I feel the pressure immediately they’ll ask you to replenish it, o r they’ll go after the security backing it up.

Honestly, I think your safest path is to come to the table openly with the agent and the landlord, and work out a payment plan that truly lets you keep up with rent, outgoings, and the arrears without drowning. It’s hard, but being real about what you can manage matters.

I’ve worried about worst case scenarios too the lease spells out the risks of breach, default, even being locked out. Still, deep down, I believe honest negotiation is your best shot right now.
 
Thanks so much for the advice, folks what a huge relief! I emailed the agent and gave them a quick call too. They said they’ll get back to me by the end of the week since they’re pretty swamped, but they’re pretty sure it’s all good as long as things are sorted by December or January, which should be no trouble.

From the sounds of it, the owner isn’t too,fussed it’s more about the agents just ticking all their boxes for the agency.

When I mentioned I was a bit worried about a lockout, she actually chuckled and said we’re nowhere near that point. She said that’s really a last resort, like if you hadn’t paid for six months, but since you’re paying every month, you’re totally fine.
 
Back
Top