Room rents and percentages

[xmelsyx]

Hi all !!! I'm being given the opportunity to expand my 2 roomed salon into a 7 roomed super salon ! I'm having to do a plan for expansion and I've got 3-4 people wanting to rent rooms off me ... Sports massage Botox etc etc I've no idea what the going rate is wether a set rent or % works better . Personally I'd prefer a set rent so I know where I am . Can any geeks with larger salons shed some light , please feel free to private message me with it bring to do with costings etc at this stage were just getting plans together but need a ballpark figure x thanks in anticipation x

 

[lbissell86]

Could you not have therapists. I've been renting my room in my 5 room 3 hair station 2 nail bar salon and its a real headache.

If you do decide to then the standard is 15-20% if their takings go to you.

Hope that helps x

 

[Baggybear]

Most threads I've seen on here about percent splits usually say 60/40.
60% going to the person that buys the products.

I would think a set rent would be easier to know where you are if your going to be renting out a few rooms and it means you have a set income even if the renter takes time off (when in a percentage split you wouldn't get anything if they were off ill or on holidays).

 

[SamanthaA]

The problem is 60/40 has been on a lot of threads because people are moaning about it.
Its not really fare because why should someone take 40% of all your earnings when its your hard work and products.
I think if its a small % and a small rent you would both be happy so £30pw rent and 5-10% of treatments, that way you have a guarantee and then the additional.

I do not run or rent, but I have been looking into it and I most certainly would not take a 60/40 deal.
X

 

[Baggybear]

You don't do both rent & a percent. You do either rent or a percent.

I think you will find that 60/40 is the industy standard split. The 40% (if the tech buys their own products) has to cover the renters rent/gas/elec/water and sometimes there are even extras like a telephone line, the use of a receptionist, advertising, tea/coffe etc.. all covered in that 40%.

Depending on how much the tech works & what the tech's prices are (as both these are the self employed techs choice) the landlord could be down every week after paying all the bills.

 

[Dani04]

I work on a 60/40 split. I get 40% and dont buy products etc I prefer it to renting a room

Sent from my GT-I9300 using SalonGeek mobile app

 

[SamanthaA]

I still wouldn't do it. The other way around is better I would sooner take 40% and they supply everything.

 

[MrsHBeauty]

I was thinking if a set rent if £100 per week, or £25 per day for people who want a day a week a week. Anything over 3 days would be classed as a full week.

I was going to do a percentage split, but I want to know where I stand each week.

I also realise that all the salons in my town work on a percentage split and if a stylist is taking £500 per week they could be paying £200 a week!! That's double what I would charge. That is my incentive and the advantage for stylists moving to my salon

At least I'm hoping that's how it will work as I am hoping to be moving into a new building which I am buying!!

I too am liking for self employed stylists, sports massage, holistic therapist and nail tech.




Jemima

 

[jcpark]

I'm not sure if the 60/40 industry standard applies to beauty only. I used to do sports massage in a salon for a 70/30 split and I wouldn't have done it for any less than 70%. Also, you may find botox is different again. I think a lot will depend on what seryices they are offering.

 

[MrsHBeauty]

From what I've researched 60/40 is what is offered round here to hairdressers and self employed beauty therapists/nail techs.

But each location can be different, and then like you said different treatments can vary. I have a lady who does teeth whitening and i get a set few per person which works out at 25% but when she does 8 people that's more than I could rent out to anyone!


Jemima

 

[jcpark]

From what I've researched 60/40 is what is offered round here to hairdressers and self employed beauty therapists/nail techs.

But each location can be different, and then like you said different treatments can vary. I have a lady who does teeth whitening and i get a set few per person which works out at 25% but when she does 8 people that's more than I could rent out to anyone!


Jemima

That seems reasonable, although what I was saying is that I'm not sure that those who don't work in the hair/beauty industry (except on the fringes) would accept that - ie. botox, sports massage etc that the OP was looking at getting in.

 

[Carlalouise]

What happens with a split if the hairdresser / therapist is sick, on holiday or comes in does two clients and decides to go home? I'm asking as someone has asked to rent a room from me. X

 

[Baggybear]

What happens with a split if the hairdresser / therapist is sick, on holiday or comes in does two clients and decides to go home? I'm asking as someone has asked to rent a room from me. X

You will only get the percent split you have agreed when they are in & earning.
Being self employed means they are free to come & go as they please, working as much or as little as they want, as well as taking days or weeks off for holidays & they would only pay you your agreed percent of any money they do take.

 

[loveyourlocks]

I worked on a self employed basis in a hair salon and I payed 50% of my earnings + £15 per week! The £15 was for the chair and towards the phone line, advertising, etc and the 50% was to cover products, colour, refreshments, washing of gowns, towels etc, water, electric and so on...so if in one week I only earnt £100 I only saw £35....I am just about to take over a room it is kitted out with a basin and 2 stations, covers all overheads and I will pay £30 per day which I think is reasonable, as on the 50:50 the manager of the salon I previously worked had a lot of issues with the staff as what if we didn't do any colours one week or what if we had a day of hair ups/dry cuts therefore not using any water/colour...but on the other hand she was responsible for making sure we always had full levels of stock and bills were paid on time. I know other stylists (self employed) that pay a set amount a week/day and keep 100% of their earnings and they prefer that! Good luck x

 

[jay_g]

Hi,
Regarding the original posters question, I would just charge a rent.

I am in a similar position that we have a hair salon which also has a beauty room that I rent out but also available is the building next door that I want to have as a tanning salon with 4 additional rooms to rent out, these for nail, teeth whitening, sports massage or perhaps something else ( suggestions welcome )

The room we do rent out already is 2.5m x 4.8m, its a good size, decorated well, bespoke cabinets for its purpose and a shower unit.
I did pay out and get an electric couch and all the customers feel that the room and herself portray a quality service.

I charge £175 per week, thats everything included like electric, water, tea coffee etc.

Its quite a bit to charge but the point I want to make is that there are people wanting to work hard, build up a good name for themselves and offer a quality service and experience and appreciate a good base to work from.

I feel that not doing a percentage/profit share and charging a rent attracts a more determined and committed individual rather than someone that wants to give it a go but has nothing to lose.

We have now had the beautician renting this room off us for 2 years, we did give some discount for 3 months to help her get started ( £125 p/w ) and since then she hasn't looked back, she is booked fully 5 days a week and earning very nicely.
she has paid us our rent on time every week ( important to set this from the beginning) and we in return have not/ and will not increase her rent for at least another year.

 

[lynn amber]

I would personally always go with a set rate wether I was renting or was the land lord and have them supply their own stuff. Just makes it simple the land lord knows what thay are taking in and the renter knows what they are paying :-D

Sent from my LT30p using SalonGeek mobile app

 

[Bombalurina]

When I rented my room I had a set rent (I think £20 a day but can't remember) but also I paid 8% of my takings to the owner, and for every card transaction I paid £1.

Was a bit of a complicated way of doing it really..! But I never felt I was being charged a fortune and it actually worked well.

 

[xmelsyx]

Thanks all that's food for thought ! thank you x