Debbie: Talk to a commercial leasing agency and ask them. It depends very much on the economy and the local economy, but there are standards for rent increases used in the leasing industry. I have often heard that most rent increases are based on the CPI and average 2-3% per year. But not every landlord goes by that. Especially when you're talking about salon owners who booth rent: our industry seldom considers a booth rental situation to be the commerical lease that it legally is. Here are a couple of interesting links that I found: http://www.bls.gov/cpi/ http://www.caltenantlaw.com/Bus-Law.htm Overall, yes, I think you should be able to sit down with the salon owner and go over the long term effects of this rent increase. Maybe she'll realize that this would mean your rent is going to increase at a greater rate than your income is likely to and you can negotiate a lease term where your rent stays static for longer periods of time? If your rent goes too high too fast, not only will that eventually send YOU out of the salon, but it will make it difficult for her to find another tech to take your place. It sounds like you have a good situation at this salon, you should be able to communicate with the owner. If you can't expect to have reasonable conversations with your landlord (the salon owner,) then your situation at the salon isn't as good as you'd like to think it is, and your tenure at this location is limited.
Maggie Franklin: Owner & Artist, The Art of Nailz, Visalia CA "Visionary rebel dreamer; obviously way ahead of my time." http://blogs.nailsmag.com/maggie/ Facebook >________________________________ >From: Debbie Wade <[email protected]> >To: [email protected] >Sent: Thursday, September 27, 2012 6:55 PM >Subject: Re: NailTech:: Re: Question for booth renting salon owners > > >Wow Ya'll! Thanks so much for the responses. However, I need to clarify my >situation. > > >I'm very happy in the salon I'm in. I'm the only nail tech and since moving >there 2 years ago, my business has doubled. In this small town, that is >saying a LOT. There are a couple of part time PROFESSIONAL nail techs >locally, but they pretty much have their own clientele and are not really >building their business. The rest of the offerings are NSS. The salon is >very nice, tho not particularly upscale. It is a comfortable salon with lots >of clientele that are established. I have my own room, have it decorated the >way I want, handle all my own business and come and go as I wish. Other than >the pedi chair/sink issue, I'm very happy. I do tons of pedis with my Belava. > While I do miss the chair, it was really too much for the size room I have. >I negotiated the sink. They bought the one I wanted and installed it at no >cost to me. It is a fun salon with minimal drama. > > >That being said, I feel that the situation with the pedi chair is water under >the bridge. Tho I would love to have one, I caved and let it go. I don't >feel I can revisit that. I'm not unhappy and don't want to leave. > > >My question, since I am ignorant of such issues, is what is a fair PERCENTAGE >yearly increase on booth rent. I accepted the booth rent and have had no >increase for 2 years. I have been told my rent will increase by 5% on my >current booth rent, which is $25.00 per month, and will stay at $25.00 >increase PER YEAR per month. This year I will pay $525, next year $550. This >is, of course, saying that everything stays as it is, and the owner continues >running the salon. If she retires, which she desperately wants to do, the two >current stylists are poised to buy the business, at which time everything is >up for change. > > >I just wanted to clarify that I'm not unhappy, and while I have made some bad >decisions at this salon, I have learned valuable lessons. I am also raising >my prices the first of November. > > >Thanks everyone! > > >Debbie in VA >Happily filing nails for 16 years. > > > > >On Sep 27, 2012, at 8:28 PM, Karen <[email protected]> wrote: > >I used to rent an office suite in an office condo....no salon drama....men >liked that it was private and no one would even know what they were doing >walking into the building! I had two rooms, a kitchen area with my own stack >W/D and my private bathroom. I really loved that space! And it was much >cheaper than the weekly “booth rental” that I had been paying for a much >smaller space I had to share with all kinds of folk. >> >>Do think outside the norm....there’s a lot of fun possibilities! >> >>Karen >>Grapevine >> >>From: Cherie Byklum >>Sent: Thursday, September 27, 2012 8:36 AM >>To: [email protected] >>Subject: Re: NailTech:: Re: Question for booth renting salon owners >>Do you have to work in a salon? I just sold my salon and moved 700 km away I >>just rented a office space in the gov building it is FAB!! I am 1 block off a >>main St, they clean the whole building and provide all the washroom stuff, I >>have 2 rooms it was a office and a reception area so I have a waxing room and >>nail room I pay $430 there are 20 other businesses in there lots of women as >>well it is probably the best place I could have found the biggest bonus is no >>salon drama!! >>C >> >>Cherie Byklum >>Owner/Educator >>http://www.simplicitynailsystems.com/ >>306-304-1882 >> >>From: Kelley >>Sent: Thursday, September 27, 2012 7:19 AM >>To: [email protected] >>Cc: [email protected] >>Subject: Re: NailTech:: Re: Question for booth renting salon owners >>I agree with Jess, no pedicure chair. I would be looking somewhere else to >>go. I just moved from one place to a new place I now have my own space not >>community space and my rent is 300 a month . Up from 250 but well worth the >>extra in my opinion to not have people interjecting into my conversations and >>such. >>By taking away the pedi station it will make an impact on your income >>potential, and is like telling a hairdresser they can't do any perms. >>Limiting you is not in your best interest . and doing pedis in the waiting >>room is not good for you ( the proper ergonomics ) or the business. >>Good luck, if I know anything the women here only want to better our business >>and would never lead you astray . >> >>Kelley >>Sent from my iPad >> >> >>On Sep 26, 2012, at 10:20 AM, Jess in WA <[email protected]> wrote: >> >> >>I think 25% is quite high. I'm in a busy salon area, and at my last salon I >>was paying $500, the hair stylists paid between $1k-1500 - however they can >>make that in a day! Massage therapists also make far more per hour, so I can >>understand her paying more. Lots of salons get rid of nail tech spaces >>because it doesn't make as much money for the salon. Others keep them >>because they know its good foot traffic and they might choose other >>services. I think you should fight for a decrease with you having half the >>space as the other, and losing the pedi chair. One of the reasons I left my >>last salon and got my own space is because they took my pedi room away and I >>was then doing pedis out in the main waiting area, which wasn't comfortable >>and far too loud. I think if she's going to take equipment away that needs >>to make a difference. >>> >>>Jess >>> >>>On Tuesday, September 25, 2012 7:38:38 PM UTC-7, ebbieday in VA wrote: >>>I am doing research to back my case in my current salon. I booth rent for >>>$500.00/month, which is somewhat high for my area. The owner has informed >>>us (I am one of 2 booth renters...the other is a busy massage therapist) >>>that our rent is going up by @25.00/month, and will increase by that amount >>>every year. I think this is pretty steep. In 4 years I will be paying >>>$600.00/month. and so on with no cap. I don't disagree on increasing rent >>>yearly AS LONG as it is reasonable. This is where it gets even sticker. >>>> >>>>Initially I agreed to this rent figure because it included a plumbed pedi >>>>chair. The room is very small, and the chair has since been disposed of as >>>>it began leaking and couldn't be repaired (it was a used unit that they >>>>purchased before I started there. They told me they bought the pedi chair >>>>in order to attract a nail tech, which it did add to the allure.) They >>>>refused to replace it as a new unit was too expensive. I now have a sink >>>>in the room in the place of the chair. (yes, I have learned many lessons) >>>>I know that the massage therapist pays $25.00 less a month than I do, for >>>>more than double the space. >>>> >>>>My question is this: What is the normal standard expectation for basing >>>>rent and rent increases? >>>> >>>>My understanding is there are 2 ways of establishing rent. 1) by square >>>>footage, and 2) by income tier, with increase being based on a percentage >>>>of the base. (In our region, stylists commonly pay ~$150-$200/week, and >>>>nailtechs $100-$125/week to start). I am trying to learn so if I'm wrong, >>>>please let me know. I also know that an incoming stylist that is going to >>>>booth rent will also be paying the same rent as I am with the same increase >>>>yearly. The other 2 stylists are commission based. >>>> >>>>Does anyone have any input? Sorry so long. >>>> >>>>Thanks! >>>> >>>>Debbie in VA -- >>>You received this message because you are subscribed to the Google Groups >>>"NailTech" group. >>>To view this discussion on the web visit >>>https://groups.google.com/d/msg/nailtech/-/VmGRs1yF7UYJ. >>>To post to this group, send email to [email protected]. >>>To unsubscribe from this group, send email to >>>[email protected]. >>>For more options, visit this group at >>>http://groups.google.com/group/nailtech?hl=en. >>>-- >>You received this message because you are subscribed to the Google Groups >>"NailTech" group. >>To post to this group, send email to [email protected]. >>To unsubscribe from this group, send email to >>[email protected]. >>For more options, visit this group at >>http://groups.google.com/group/nailtech?hl=en. >>-- >>You received this message because you are subscribed to the Google Groups >>"NailTech" group. >>To post to this group, send email to [email protected]. >>To unsubscribe from this group, send email to >>[email protected]. >>For more options, visit this group at >>http://groups.google.com/group/nailtech?hl=en. >> >> >>-- >>You received this message because you are subscribed to the Google Groups >>"NailTech" group. >>To post to this group, send email to [email protected]. >>To unsubscribe from this group, send email to >>[email protected]. >>For more options, visit this group at >>http://groups.google.com/group/nailtech?hl=en. >> >-- >You received this message because you are subscribed to the Google Groups >"NailTech" group. >To post to this group, send email to [email protected]. >To unsubscribe from this group, send email to >[email protected]. >For more options, visit this group at >http://groups.google.com/group/nailtech?hl=en. > > > -- You received this message because you are subscribed to the Google Groups "NailTech" group. 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