Is this rent reasonable?

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Holisticfreak

Member
Joined
Jan 13, 2017
Messages
17
Reaction score
11
Location
Yorkshire
Hi all and first post here!
I've been employed in a salon for 14 months as a therapist (qualified aromatherapist, hot stones, branded facial, branded lash extensions, lash perming, brows) and salon owner has put forward a proposition for going self employed renting the room. £800 per month (plus vat) and 10% 'service charge' of all takings. I don't work full time hours and currently make around £1800-£2000 per month but I know I'd raise this by putting in more hours. I think this is way too much but what are people's thoughts? This has been offered to both of us therapists and the rental she would make would actually cover the whole of the hair/beauty salon she rents and at least £200 more!
She also wants a holiday rule in place in that we can't cancel clients with less than 4 weeks notice for holidays. Thoughts? Thank you xx
 
To me that's extremely high, quadruple what I pay :eek: with the 10% service charge too?! And she also can't enforce a 'holiday rule' when you're self employed and renting the space. If someone had offered this to me I would have genuinely laughed at them. Give that offer a wide berth :)
 
Thank you, I've found it hard to keep a straight face tbh. My husband is self employed and has being helping me. I came back with a counter offer of half that rent and still 10% charge for me to even consider her offer.
She then tells me "I'm working that out on a 5 day week (I work 4) and you making £1000 a week. I did tell her that I'm not currently making that so can't work off an assumed figure. Also she seems obsessed over what I can earn, to me it's a case if she should be proposing rates and that's it l-what I could/couldn't earn really is non of her beeswax!
She is constantly telling us that the rooms/us earn her no money but that can't be true as I'm on nmw if £7.20 p/h which would be around £920 per month for her. I absolutely love what I do and I know I'm good at it but this would obviously be a risk. I can't afford to bring in £2k and give half that back for rent and 10% !!!
 
Not sure what area you are but I think it would be reasonable without the service charge as then only equates to £40 per day based on 5 day week which if you look at it is prob what you can earn for one hours worth of services? I'm not sure why she wants the service charge, is it cos she would be buying the stock? If you already have a clientele I would consider it but she can't dictate your hours or holiday. Sounds like she wants the best of both worlds!
 
Yes I think she does want her cake! No we would be buying all of our own stock, she classes service charge as use of receptionists, laundry, link to our website through the salons website. I just think it's one or the other but not rent inc rates then also a 'service charge'?
Husband did say to think about service charge as in one way it's good as she'd have an incentive to keep pushing salon clients to us both.
I'd agree on £800 but think on rates I'm pulling now after stock etc I'd have to look at figures carefully, but then again I'll be free to offer much more and would really enhance my treatments with some equipment/extras that I can't currently because she won't buy anything for the rooms.
I have built up a clientele and know I could offer so much more but tbh I've held myself back at the min as she only pays me minimum wage and there's no way I can be paying for private training and yet not get anything extra to reflect in my wages.
 
Yes it sounds like she just wants more money from you. I would expect to pay that rent in somewhere like London, it just depends on your area. Have you had a look at any other spaces near you that are up for rent? You could see the cost of them in comparison to what she is asking for and see whether it would be worth it :)
 
I'm based in Yorkshire, yes a lot of the rooms that I've seen over the last few months have been £400-£600. I saw two rooms in Richmond, London for £1000 a month-might go there;)
There was one right near me but they wanted level 3 qualified which I'm not, however the rates were still 400-600 mark.
I get that we'll have her ongoing clientele but to me if she wants to let rooms she needs to get her head around the fact that, yes, we might earn money off it but that's the point of being self employed! Also I'm not sure if she's checked with her landlord if she can sub-let o_O it just feels really unsettling and also her saying she doesn't earn money off us, I need to be asking why she thinks we'd rent a room when supposedly we'd be in deficit!!
Thanks for your replies so far xx
 
Firstly, I'd ask her for a contract so you have some security of tenure.

I'd be wary if she's currently employing you that she might still try to manage you when you're change over to working for yourself. You will need to be quite firm and assertive in that case.

I recommend printing off the HMRC guidelines sticky at the top of this forum and let her have a copy. You can refer to it if she tries to impose any rules that you feel are unreasonable.
 
Thank you! Yes she's currently getting a contract written although I spoke to her this week to let her know the amounts at which I'd possibly pay. She did inform me that 'you're not making me money' and when I queried this she said she had figures to prove so I've asked to see these.
Thanks so much for the hmrc link. I do believe that I will have a very hard time with this as she will try to impose things or speak to me like an employee. I have a lot to consider.
I guess in a way it's now made me consider renting elsewhere, setting up from home etc which I've been mulling over the last few weeks but now she's said this it's like it's got the ball rolling in my head. I've been there 2.5 years in total and it's making me feel like she wants rid which is leaving me a little stressed :(
 
If someone, an employer, told me "you're not making me money" I would definitely not be working with them/for them for much longer! If I were you I would probably look elsewhere because even if you manage to agree on a more reasonable price each month and a contract that you're happy with I still think she sounds like she'll be a bit of a pain
 
Thank you! Yes I think you're right, it's been very hard hearing that the last few months after building up my column from scratch-I've been working so hard and built up a busy column with lovely clients. I guess I'm scared of taking my the leap too.
Thank you so much for your advice and you're saying what my inner voice is shouting to me xx
 
You're welcome, listen to your inner voice! :) good luck xx
 
Hi all and first post here!
I've been employed in a salon for 14 months as a therapist (qualified aromatherapist, hot stones, branded facial, branded lash extensions, lash perming, brows) and salon owner has put forward a proposition for going self employed renting the room. £800 per month (plus vat) and 10% 'service charge' of all takings. I don't work full time hours and currently make around £1800-£2000 per month but I know I'd raise this by putting in more hours. I think this is way too much but what are people's thoughts? This has been offered to both of us therapists and the rental she would make would actually cover the whole of the hair/beauty salon she rents and at least £200 more!
She also wants a holiday rule in place in that we can't cancel clients with less than 4 weeks notice for holidays. Thoughts? Thank you xx


Hello, I think this is far too much what she is asking you to pay. In London you can find room for £135 /£160a week in good area in well known places.
Good luck
 
I'm in Yorkshire too and generally speaking the rates around here seem to be £25/30 a day.
 
I rent a whole shop in Yorkshire for £425 a month xx
 
If you're busy, and it's a good salon, in a nice area, then £40.00 a day seems fair.:)
As a salon owner myself, it costs me £120.00 per pay just to cross my threshold!

Employees seldom consider the costs involved in running a salon, and sadly Salon owners are all to frequently assumed to be 'greedy bas**rds, raking t in!' :p

Only you know if you like where you are and if it's worth making a go of it.

Yes, you will save 'rent' money working from home....but it has it's draw back, the main one being clients will 'expect' you to charge them less.o_O
 
I rent a whole shop in Yorkshire for £425 a month xx


That might be your rent, but what about EVERYTHING ELSE!
Heating
Lighting
Water
Fire safety inspections & certification
PAT testing
PPL & PRS licence
Treatment licence
Waste removal,
Building/contents insurance
Public liability insurance
Cleaning
Broadband/telephone/card machine
Water, central heating, air con. insurance cover
Magazines
Tea, coffee, milk, sugar,cold drinks etc....
Laundry
Toilet tissue/paper towels/soap/sanitary waste.
Flowers/plants

Also, but often forgotten is the maintenance of the salon - inside and out!
 
That might be your rent, but what about EVERYTHING ELSE!
Heating
Lighting
Water
Fire safety inspections & certification
PAT testing
PPL & PRS licence
Treatment licence
Waste removal,
Building/contents insurance
Public liability insurance
Cleaning
Broadband/telephone/card machine
Water, central heating, air con. insurance cover
Magazines
Tea, coffee, milk, sugar,cold drinks etc....
Laundry
Toilet tissue/paper towels/soap/sanitary waste.
Flowers/plants

Also, but often forgotten is the maintenance of the salon - inside and out!
It's less than £800 a month including everything
 
If you're busy, and it's a good salon, in a nice area, then £40.00 a day seems fair.:)
As a salon owner myself, it costs me £120.00 per pay just to cross my threshold!

Employees seldom consider the costs involved in running a salon, and sadly Salon owners are all to frequently assumed to be 'greedy bas**rds, raking t in!' :p

Only you know if you like where you are and if it's worth making a go of it.

Yes, you will save 'rent' money working from home....but it has it's draw back, the main one being clients will 'expect' you to charge them less.o_O
When I read posts like yours I wonder if I should just stay home based. I'm out in the sticks and clients love the relaxed atmosphere.
 
Thank you everyone! Yes I do understand the 'everything else' bits, totally! Of course she's free to ask what she wants but £960 each (before service charge!) comes to £500 more than what she's renting the full salon for :eek:
However to me, that should just be included in rent-to add on a 10% 'service charge' is actually in my opinion an unreasonable way to word that, as those rates in some instance don't go up and up (e.g. Giving £200 for £2k takings, £400 for 4K) isn't proportionate to the rates I'd be using.
I guess for me there is also more to it in regards to how we are treat by her etc which is making me hesitant?
It's been so good to get a variety of opinions and of course I'm happy to pay a fair rate. As advice suggested above I think she's going to find it difficult to let control go e.g. Holidays, how we run our columns and also a big sticking point-if the second therapist doesn't want to go for it that means I think I can't as she will push the clients to her own staff member first.
I have a beautiful space to work from home so it feels like it's coming to crunch time-I can't set up and advertise as I'm employed in salon so do you take the leap or not. Decisions decisions:confused:o_O
 

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