What to Know About Salon Booth Rentals
Many salons today are renting out their chairs to make additional revenue; stylists opt to rent chairs because of the flexibility it can provide versus being a full-time employee of a salon. But as with any business model there are up sides and downsides, and that’s what we’ll be tackling today. What amenities attract stylists to a rental? As a salon owner, is renting out space the best choice for your business? Let’s dive in!
An important thing to note when renting out chairs is that the relationship you’ll have with your renters is one of a landlord. That could be a great perk, if the HR aspect of running a salon isn’t your cup of tea. Be prepared with a renter’s agreement that outlines items such as the terms of the agreement, the equipment you’ll provided/won’t provide, expenses you’ll be responsible for, etc.
You’ll also need to provide certain amenities free of charge. Items like towels and coffee/tea are the basics; to stand out from other salon owners, consider additional complimentary perks like robes, salon treatments, and shampoo/conditioner. You can pitch in to help with your renters’ marketing, as well. It’s as simple as hyping new stylists up on your social media pages.
A study published on The Thriving Stylist found that the criteria most stylists are looking for when renting a booth is salon culture. Culture ranked higher than even costs and career growth potential! And we shouldn’t be surprised – just check out this stat from Glassdoor, which found that 77 percent of respondents consider a company’s culture before even putting in an application. If you want to attract great talent to occupy your chairs, take a good look at your salon culture first. When seeking out new renters, consider those you believe will slide seamlessly into the existing culture of your salon. You want everyone in the space to get along, appreciate one another, and work in general harmony—or at least as close to harmony as possible! Happy employees who enjoy working with one another also create an atmosphere that draws in clients, which is a winning combo.
In terms of finances, it’s recommended that the rent payments for your salon not exceed 25 percent of your expenses. If they do, consider different ways to drive revenue, or cut back on some other areas of expenses if renting is truly the path you’d like to take.
As the world begins to slowly open up again, more and more beauty salons and barbers are relaxing their occupancy mandates. This might be the perfect time to evaluate your marketing strategy and business model and see if a no-risk line of credit might help propel you to the next level. Learn all about ARF Financial and its rock-solid history of providing small business loans to thousands of individuals just like you. You can also check out our resource center for case studies, presentations, and webinars related to owning a successful small business.