How to rent out a room in our salon?

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HMC

Well-Known Member
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Mar 12, 2014
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Location
Auckland, New Zealand
We have a spare room in our salon and are thinking of renting it out to a massage therapist (we don't do massage). But we are completely new to this and have no idea how the payment works?

Do we charge a percentage of her profits? Or charge a flat rate for the room regardless of what she makes herself? How does it all work? What's 'normal' or 'common'?

Any and all advice is appreciated, thank you!

EDIT:
Our spare room is beautiful, decent sized and fully equipped for massage AND beauty (though she will only need massage). She would be using our electricity, water, our hot towel cabinet, music (one system across entire building), waiting room. There is the option for her to use our laundry/linen, but of course we would have to work out a system for that so we are sharing (or separating) the workload of laundry. I almost feel it is easier to keep everything separate at first? Her booking, phone & payment system will be completely separate from ours, she will essentially be a separate a business. We won't be booking in each others clients, but will send referrals across to each other. She will be starting from scratch, without any clientele. We are in a great location, growing rapidly in clientele.

Those with experience in this, which works best for both parties? To take a % or cut of her earnings, or to have a flat rate charged weekly regardless of what she has booked in.
Thanks again.
 
Last edited:
First I'd check the rules with tax in your country, I'm pretty sure I've seen videos on you tube with regards to rent a room or chair saying it's very complicated because of the tax. It's either NZ or AUZ. The man on you tube runs classes on it, and he's the only one who's cone up with a system that gets around the tax thing.....

Having said that, it's normally a % of the tenants turnover/takings or a flat fee of $X per week.

How much to charge is only something another stylist in your country or area can give advise on. As with most rentals it would depend upon what is offered, size of room, toilets, washing, wifi and a few other things.

I'd always go for a fixed rent, as it's less hassle. We offer a couple of weeks rent free for holidays, some don't do that I know, that's just us trying not to make things too hard for the tenant, we try to be as helpful as we can even though it might cost us. Keeping the tenant over a long period is or game plan.

If they are starting from scratch they will not have clients already, so they might prefer a % which means some days you could get nothing, charging a fix fee might scare a newbie off as they soon could be indebt.

If it was me, and the tenant was new with no clients, I'd opt for a % to give them a start up, then switch to a fixed fee after a few months.

It's your call tbh xx
 
First I'd check the rules with tax in your country, I'm pretty sure I've seen videos on you tube with regards to rent a room or chair saying it's very complicated because of the tax. It's either NZ or AUZ. The man on you tube runs classes on it, and he's the only one who's cone up with a system that gets around the tax thing.....

Having said that, it's normally a % of the tenants turnover/takings or a flat fee of $X per week.

How much to charge is only something another stylist in your country or area can give advise on. As with most rentals it would depend upon what is offered, size of room, toilets, washing, wifi and a few other things.

I'd always go for a fixed rent, as it's less hassle. We offer a couple of weeks rent free for holidays, some don't do that I know, that's just us trying not to make things too hard for the tenant, we try to be as helpful as we can even though it might cost us. Keeping the tenant over a long period is or game plan.

If they are starting from scratch they will not have clients already, so they might prefer a % which means some days you could get nothing, charging a fix fee might scare a newbie off as they soon could be indebt.

If it was me, and the tenant was new with no clients, I'd opt for a % to give them a start up, then switch to a fixed fee after a few months.

It's your call tbh xx


That's all great info, thank you. I'll have a think about it and see what will work best for the both of us - and will double check the rules with tax! Thanks again :)
 

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