Room renting..have I made the right decision ?

[LianaBella]

Hi everyone, hope you can give me some good advice

I'm 3 months into renting a room in a fitness first gym near Cheshire.

The rent is £500 and I sublet to a lady 1 day a week which I charge £100 for the month. Its going ok- I've been making enough to cover the rent and my personal bills as well as some to pay back my parents who helped me set up.

I'm 19 and to say I didnt have much of a clientele when I started, I have built a nice little base with some regulars. I should mention the room is quite small but enough room to do most things just not spray tans which is a shame!

The lease on the room is for 3 years but there is a clause where the first 6 months allows me to decide if its for me and I am free to walk. So.. accidentally, I happened to come across some properties in my town online, 1 was 5,500 p/a (less than I pay) but would bills would be on top) It was a good sized shop with an upstairs, close to the town centre and round the corner from the gym so my clients could come with me! But I phoned up and it has recently gone!!

Another one I saw was perfect! actually in the town centre in a great location for £6,000 p/a spacious with tretament room upstairs and room for nail bar down, wow I thought, so arranged to go for a viewing today, when I got there the man told me it had just been signed for today and tried to show me another shop next door to it but the woman who has got the 1 I wanted is having it as a beauty salon, so I cant also have 1 directly next door can I?

So now this has got me thinking. Am I wasting my time paying so much in a small room? when for not much more I could have an actual salon and really make a go of establishing myself!

I know only I can decide this but would love to hear your views. I do like the way its going at the gym but now I am tempted to think 'bigger'... the bad thing is I only have 3 months now to find somewhere else, if i decide to, before I am tied down for 2 1/2 years at the gym!

Thanks for reading,
Bella xx

 

[bbk]

Running a salon would have alot more overheads I think from briefly looking into it, there are so many hidden costs! But great to start a salon too it's def what I want to do! I would maybe get a plan/spreadsheet together to assess how much it would cost in comparison to run a salon/ your room at the gym. Could you not suggest another break clause after a year? Depends how flexible they are but if you explain your concern about being tied in they might be more understanding than u think? 3years is quite a long time, after a year you would be in a much better position to assess if you're ready for a salon and you would have had time to build sone more clientele.
I rent at a gym too I don't have a tie in, I'm not sure if it's common? I have a contract and I just give a months notice if u want to leave xx

 

[Elaine143a]

WOW commercial rent is sure low where you are!

Agree with previous post. Why not approach the gym and ask if you can maybe extend your current rental period without committing to another long term. They may just be glad to have someone renting rather than have an empty space. Maybe in the meantime keep looking for commercial premises. Be warned though, having your own salon is not always what it's cracked up to be - think carefully first, although it can be very rewarding.

 

[angelina221]

A lot of people get tempted to buy a salon when they think the rent is quite cheap. Unfortunately there are lots more costs that people don't consider.
To give you an idea, my rent is 1/6th of my monthly outgoings.
You have to pay rent, rates, utilities plus lots more.
If you times the rent by at least 4, then you will have a more realistic figure.

 

[LianaBella]

Thank you all for replying! I'm definitely going to ask if I can extend break clause/ have another one in a year, got a feeling they won't be very lenient though.

I'm still going keep an eye out for commercial properties! Those were very good deals and it's not usually that cheap in the area! So no wonder they've gone!

Thank u I understand it's a much bigger commitment with a salon and more out goings etc, but I feel I could be doing more treatments and making more in a salon in the right location. I have the mentality of 'go for it, there's nothing to lose' lol prob cos I don't have any real ties like kids Etc (yet) thanks again really appreciate the advice

Xx

 

[LianaBella]

Thank you Mint beauty! Wow This is a very inspiring story really touching, I'm so pleased for you. and it just goes to show that determination and hard work really does pay off. Your Salon looks fab, I love the colour scheme. and its fantastic that your rent is cheap in the city centre. I will take your advice and keep looking and keep my options open THANK YOU

xx

 

[olabecee]

Thanx lianabella :-D its tough but u will make the right choices im sure xx

Where did you get the treatment room sign writing? Thanks

 

[Beauty Cupid]

Thanks for your inspiring story MintBeauty. I launched in April business is quiet at the moment so I was a bit worried but your story has encouraged me to persevere.