IS YOUR RENT TOO DAMN HIGH?

Many small business owners struggle with their rents. Here's what to do.

- RACHEL WALLACE

AR Workshop is a DIY studio franchise, and Patrice Chatman was once just a happy customer. Then she became a part-time teacher. And in 2023, she bought the Westfield, New Jersey, location- inheriting a studio she loves, and a lease agreement with a steep learning curve.

“Before I officially took ownership, I think we were forecasting that somewhere between 27% and 30% of our gross revenue would go toward rent and utilities,” she says. About a year in, that number is 43%. “Rent is definitely a struggle.”

Chatman is not alone. In April, the business networking platform Alignable reported an uptick in small businesses that were unable to pay rent in full. A poll of 4,171 small business owners showed that 43% were delinquent on rent that month, a high not seen in similar surveys by the platform since March 2021.