What % rent

[Manda Panda]

Hi guys, last year we relocated to new rented premises within a health club. Previously I was in partnership with a hairdresser and had a joint lease in a salon.

We ( me and another therapist) have been at our new location for nearly a year now and our contract is up for renewal. Things have worked out really well and we love it. Much busier than where we were before.

My question is, what should I be looking to pay in rent pcm? I currently pay £500 but I'm certain they will want to increase this. What % wise is acceptable and is this based on your turnover or profit? We have one small treatment room and an area in reception for a double nail desk.

I was only paying £500 pcm before and that was my own salon.

 

[BannerPenguin]

In theory they can put it up to what they like. You should negotiate but there isn't really any set rules. 10% increase could be likely.

Unfortunately they know if you're doing well they can literally give you a price and make it a take it or leave it offer.

 

[Manda Panda]

I didn't know if there was a rough guideline like 20/25%. Interested to know what everyone else pays.

 

[KrisKross]

It depends on your local market rents and supply and demand. Local estate agents will be able to advise you on the going rate per square foot/metre, then you need to take into account the benefits of being situated where you are and how much extra business the location has brought you, what is that worth to you.

For what it's worth we rent out two residential properties and haven't put the rent up in 3 years until this year, we put it up 2%. I appreciate commercial letting is probably completely different. No harm in trying to negotiate with the landlord if you're not happy with what they suggest.

Sent from my D6603 using SalonGeek mobile app

 

[Manda Panda]

It depends on your local market rents and supply and demand. Local estate agents will be able to advise you on the going rate per square foot/metre, then you need to take into account the benefits of being situated where you are and how much extra business the location has brought you, what is that worth to you.

For what it's worth we rent out two residential properties and haven't put the rent up in 3 years until this year, we put it up 2%. I appreciate commercial letting is probably completely different. No harm in trying to negotiate with the landlord if you're not happy with what they suggest.

Sent from my D6603 using SalonGeek mobile app

It's a tricky one, we are busier but I don't want to be paying more than when I had my own salon. Thank you I will certainly give a few of the local estate agents a call. Do you think the business rates dept be able to help? I know they work on square meter?

 

[Beckybee]

If they do want an increase try to get it drawn up that there is no further increase for the rest of the lease.

In today's rental market, why not try to get it to remain the same but comit to 5 years. Worth a chance