Do you know the difference between a booth rental and a salon suite rental? Both may seem like they are the same concept, but you’d be surprised. Let’s find out the difference, shall we?
What is the difference between booth and suite rentals?
A Booth rental is a small space being rented out by the salon owner. You have to work around others at the same salon and also abide by an agreement, usually in regards to customers and what you offer. A Suite rental is full control of an area designated to be a salon. You are in full control of the space and have more flexibility depending on how you negotiate the contract with the owner.
What Exactly Does it Mean to Rent a Booth?
What it means to rent a booth in a salon, you are operating your business in a small enclosed area provided by the owner. You are not an employee of the salon, so you are required to compensate for any business expenses you may have. You are also not paid an hourly wage, which is both a great thing and a bad thing depending on how much you earn.
Before you consider renting a salon booth, take a look at the pros and cons I have listed below. You may find them useful before you dive right in and look for a booth to rent.
The Pros of Booth Rentals
The positives of renting a booth at a salon are it is much cheaper than renting a salon suite. While you may not be in full control of your station, it is usually supplied with towels, water, and wifi are usually included in the rental agreement as well.
If you want to be in a more traditional salon setting, this is a great way to keep the same environment you want to work in. You aren’t alone in the space, and you can interact and learn tips from the other beauticians as well. This is great for beginners who want to slowly transition into working for themselves, but also in a salon setting.
You may not have to provide your towels, the salon may provide some for you, or at least allow you to use their laundry facilities. Water, Wi-Fi, and other amenities may be included in your rent as well. It’s best to review your contract and ask the owner what will be included in the rent.
You are not set on an hourly wage, meaning you profit from every client that sees you. You can charge a certain price and be guaranteed you will see that exact amount. However, this can also be a con.
The Cons of Booth Rentals
The cons of booth rentals are you have to abide by the salon’s rules if it is in the contract. You may also have to use the brand of product the salon offers. In general, you do not have full control over your booth, you have to abide by the contract.
You are not guaranteed clients, if the salon has not put your business information in their scheduling system, you will have to create your own and manage your scheduling. This could lead to problems with working and managing phone calls for the schedules clients make.
The salon owner may raise the rent for any reason whatsoever if you are on a percentage of the earnings rent. This could lead to you having problems operating your booth if this percentage is high, don’t sign a contract if this percentage is less than 25% unless you are given full access to the salon and utilities are included.
The owner can threaten you if you do not show up to work at a specific time, this is highly illegal since you are not employed there. You are only renting a space, not working for the salon. If this happens, you need to report the salon owner to the wage and labor board in the area, they cannot make you do anything if it is not in the contract and cannot force you to work for them.
Remember how I said that not being on an hourly wage is also a con? Well, if you do not have many clients coming in, you are not guaranteed to make a profit. Running your booth means you are not employed by the salon, so that also means you can earn less than the stylists who are employed at the salon.
Overall, this is a great starting point if you are just starting. You get an insight into what a salon work environment looks like, and if it is something you like you can base your salon off of the salon you rent at. If the owner is being unreasonable and trying to say you work for them, leave immediately and report them.
Now, onto Salon Suites. There are great things about renting suites and there are some not so great things. Let’s take a look. But first, what exactly does it mean to rent a salon suite?
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What Exactly Is A Salon Suite Rental?
A salon suite rental is considered a “mini salon”, you have a smaller scale salon you can call your own space. For a certain price per month, you can rent a suite and have full ownership of the services within the space. The rental agreement between you and the landlord may limit some things you can do in the space, but that can be solved before you sign the lease.
The Pros of Renting a Suite
There are many great things about renting a suite. You have a bigger space to work with, meaning you can employ and or work with other stylists in the space. You are in charge of your suite, meaning anything you say goes. You can have the freedom to create any look you want within the suite.
You have a significantly bigger area than a booth. That being said, you can add different services and see more clients at once. You can also hire other stylists to work for you so you can offer more services for your salon suite. Given you have a bigger area, you also have full control over designing the area however you like.
You are your boss, you do not have to follow what others say. Instead, they listen to what you say. You are in full control of the area, if you want to offer another service to your salon, no one can tell you no except for yourself.
Given you have a bigger area, you also have full control over designing the area however you like. You can have creative freedom over posters, decorations, even the walls you can decorate. As long as you get the ok from the landlord for any permanent changes, anything is possible.
You do not have to deal with any building costs, building-related issues, none of it. Since you are just renting the space, that is a job for the landlord to do. There is no risk at all for anything since you do not own the building.
The only thing you would have to worry about is how you would pay the bills and your rent, though you may also want to consider any business tax and expenses. Now onto the cons of renting a suite.
The Cons of Renting a Suite
There are few cons, but enough to make you consider if you want to rent a suite for your business. You will have to source your utilities, create your scheduling system, ask for permission for permanent changes to the landlord, etc. Let’s look at the cons.
You are responsible for paying the water bill, electricity, Wi-Fi, and other important utilities if they are not included in the rent. Though this is usually included in the agreement and rental of the space, if it is not however you would need to ask questions before signing the lease. That way you know what all is included and there are no hidden fees for you in the future.
When you want to change the wall color or add new lighting features, you will be forced to ask your landlord if you can. Before you change anything they have to say yes and consent to the work being done. So you do not have full control of the suite exactly.
You will be forced to create your scheduling for your clients. If you do not have any employees to help out with the distribution of the work, this can get stressful fast. You may lose some clients and reputation if you cannot deliver fast replies to any questions and lose some appointments if you are backed up with clients.
At the end of tax season, you will not be given a w2 like employees of a salon have. There are more taxes you will have to pay and you will need to fill out 1099 since you are a freelance stylist and also provide information about your business expenses for tax reasons.
Now you Decide Which One you Want to Rent
Now that you know all the information about booth and salon rentals, and also can tell the difference between the two. It is time for you to ultimately make the decision which one you would rather operate from.
If you choose to rent a booth, then this article will help you start when you rent your booth and also will give you great tips. Renting a booth comes with its pros and cons, but before you decide, take a look at suite rentals.
If you choose to rent a suite, then this article can give you more in-depth information and tips. Renting a suite comes with its risks and rewards but is overall looking like a better option if you have extra money to rent.
Now you know the difference between booth rentals and salon suite rentals and have learned what you should know between the two.
How much does it cost to rent a salon suite?
This depends greatly on your location, but the average is between $235 and up to $500 a week to rent. This overall depends on your landlord and their payment plan for the suite. Take some information from this article to find out how much it costs to rent a suite and the expenses associated with it.
How much does it cost to rent a booth?
This will depend on the salon owner and what amenities are included in your space. Usually, the rent rate for booths is between $250 up to $1,200 a month depending on the owner and the location of the salon. If there are utilities and amenities included in the rent then that is also a reason the rent can be so high a month.
Author: Lauryn Ferguson
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Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Shawn Chun is an entrepreneur who has owned several types of businesses from a coffee shop to an import and export business to an online review business plus a few more and now creates online resources for those interested in starting a salon business. It is demanding work he loves to do it. Shawn says “I do it for those passionate about their business and their goals. I know how hard the struggle is to obtain and retain clients, finding good employees all while trying to stay competitive.”
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