High rents are forcing small businesses into tough choices like raising prices or changing location

While many costs have come down for small businesses, rents remain high and, in some cases are still rising, forcing many owners into some uncomfortable decisions. “Every time the rent goes up, we have to raise prices to keep up with the cost,” said Adelita Valentine, owner of HairFreek Barbers in Los Angeles. “But with the cost of living, it makes it difficult on our customers.” Other owners are choosing to be late on payments or seeking out new locations where the rent is lower. A few are pushing back against their landlords. Although inflation is easing, it remains a top concern for small businesses. According to Bank of America’s internal data, rent payments per small business client rose 11% year-over-year in July. That’s more than twice the increase for renting and owning a residence, a metric known as shelter, according to the government’s monthly Consumer Price Index. That figure rose 5.1% in July. The rent for Valentine’s barbershop rose to $4,000 in January from $3,600 in December, the fifth increase in the past eight years. She had to raise the price for her cuts from $35 to $40. Two months ago, she moved locations for a cheaper $3,200 rent, but her space is smaller now, and she sees fewer families coming in. Standing firm against a landlord sometimes works. Janna Rodriguez has run her home-based The Innovative Daycare Corp. in Freeport, New York, since 2018. When she first signed her lease, she paid $3,500, plus costs including landscaping and maintenance. In 2020, the pandemic began, and her landlord raised her rent to $3,800 and also made her start paying half of the homeowner’s insurance. Last year, the landlord raised her rent to $4,100, plus the additional expenses. Rodriguez raised her prices for the first time, by $10 per child per week, to help offset the rising rent. This year, she successfully pushed back when the landlord wanted to raise the rent yet again. This article was provided by The Associated Press.