Brooklyn Hairdresser Worries About Rent And What Comes Next

When the first reports of the coronavirus appeared, Eric saw fewer people walk into his Park Slope hair salon. The business shut down completely when New York Governor Andrew Cuomo ordered all non-essential businesses to close on March 22 and issued a strict stay-at-home order. Eric, who doesn’t want us to use his real name, worries about what will happen now.

Some customers still support local businesses by purchasing gift cards or paying for haircuts in advance. This may help a little for now, but many businesses will have to turn to loans that the government is offering as part of a $2.2 trillion rescue package.

Eric doesn’t like the sound of loans. “It’s not really a gift, it’s a burden. You have to pay it back and more eventually,” he said. He would prefer to be able to keep up with his rent through his income and receive more help from the government in normal times. Even before the pandemic in New York, Eric struggled with marketing and accounting, which he handles himself.

Rent costs are Eric’s biggest problem. The commercial rent on his salon increases 5 percent each year, which he says “hits my pocket.” But high New York City rental housing prices also make his life difficult. To reduce his expenses, he moved his family from Brooklyn, where he lived near his extended family in a tight-knit community, to Staten Island. That was a year ago, when his daughter was four and his wife was expecting their second child. “I need three bedrooms or at least two, and I can’t afford anything in Brooklyn today. And I’m already working seven days a week, I can’t just work for rent,” he said.

City College professor H. Jacob Carlson said landlords are free to set high, competitive rental prices for businesses. “As small businesses have been crowded out by corporations that can pay higher rents, this has reshaped the commercial rental market,” he said.

The challenge of rental costs and the uncertainty surrounding the coronavirus pandemic leaves many wondering if their business will be able to reopen after the stay-at-home order is lifted.