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Renting space in beauty salon

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P28 SPA

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Hi geeks, i would like some advice. I have a room in a hotel which i run my beauty salon from full time. I would like to rent out my room to a friend?/ therapist for 1 day a week, which would give me a day off. She would be doing the same beauty treatments as myself and using my products etc.. Should i ask for a set rate for the room for the day or work with percentages, what would be recommended? She would be bringing some of her own clients which she normally works from her home, but also clients from myself and the hotel, i have been established for 3 years in which i basically worked everyday to build up my clientelle from scratch. i have a lot of advertising costs with my business (phone directories, website). I only have the 1 room so there isn't a possibility of extending the business. Please help!!! I want to make sure we have a fair agreement between us.
 

Nataliya

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I would do a percentage. 40% FROM EACH TREATMENT. I worked like this before, she is making money so do you. Both of you and clients happy.
If she was using her own products - i would charge a rate.

Hope this helps.

x
 

P28 SPA

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Thanks i did suggest 60% to her & 40% to myself. She reckoned that was 2 much & doesn't think she should be giving me anymore than 30%. she won't really have any outgoings & she could be earning approx. £15 /hour, which i thought was pretty good. Difficult coz she is a mate. What would u recommend for percentage of sales of products.
 

oey

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Have you thought that what you are trying to achieve may be classed as an employee by the Inland Revenue guidelines/rules? My understanding is that if you are supplying all the equipment and products then you are calling the shots and the person needs to be classed as an employee.

I havent been in your situation so I may be wrong but I dont know how strict the Inland Revenue would be on this kind of issue.
 

P28 SPA

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Thanks, never thought about that as i would have just put it through as a normal income for the day. I will look into it thanks, Does any1 else know where i stand with the inland revenue.
 

Nataliya

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I agree you should contact HM & revenue to check what status will she be.

I think you can find somebody else - do not do business with a friend, from personal experience.

Using your products and your premises and arguing for price is not a good start. I had a receptionist at one point who was telling me (salon owner) what to do, she did not last 2 days in here.:eek:
 

dawncbn

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Hi, In my last hair salon I had 3 people working on a 50/50 basis. I provided the salon and the products. I was happy to end up with about 25-30% of a clear profit from this. The "staff", were then classed as self employed. I provided the insurance, the profit I made from the earnings from them I put down on my tax return. Hope this helps.
 

EMMA AT ELITE

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Hi there,
This is a bit of a tricky one I think.
I agree with the advice from the others,
but how about;
figuring how much each days rent comes to ask for that to cover the days rent plus advertising costs for example if you pay £100 per week thats £20per 5 day week and say £10 (ish to cover leaflets etc) thats £30,
so you could say £30 per day plus 25% of each treatment, or
just £50 per day,
Or why dont you employ her cash in hand at £7 per hour,

Some other thoughts;
Have you got room in reception/waiting area to put in a nail station?
That way you could rent that out or employ a nail tech.

Hope all works out for you, whatever you do, keep us posted?

Emma x
 

hippy-chick

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then charge her rent for the day and she supply all of her own products and towels, etc. if she wants to advertise herself, she does it herself.

the going rate is from £10-30 per day. This motivates her to bring clients in as she needs to cover her day rent and is still payable when she is on holiday/sick/skiiving/empty.

if she pulls a face at that, tell her that you've changed your mind about renting out.

You are much better taking someone else on that YOU call the shots and friendship doesn't cloud your decisions.
 

P28 SPA

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:) Thanks every1 for their advice, much clearer picture now, will let u know what i decide
 

scotstrainer

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1) Do you have permission to sub-let?
2) Will your insurance cover a sub-let?
3) Is she employed already?
4) Can you hire as casual labour?
5) Does she hold the right certification?
6) If she runs a business from home, I presume that she is self employed and has her own insurance
7) Do you need this?
8) Have you spoken to your accountant?
9) Will closing your business for one day affect your business that much as surely your clients will become used to this?
10) How will this affect the profit of the business, look at your diary would you still be able to fit your clients into a shorter working week or are you contracted into I presume a six day week
11) Remember once a contract is drawn up it is binding
12) My advise is to close one day, see if this will affect your business, if it does then rethink your position
13) Just a few issues some of which might be helpful
 

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