I feel an annual increase in rent of 5% per year is entirely arbitrary and way too high.
A lot of commercial rentals base any rent changes on the GNP...which has been under 2% for 3 years and under 1% for the last couple quarters...Q 2010, 1.05%, 2Q 1.16%, 3Q 1.12% 4Q 1.06%, 1Q 2011 .68%, 2Q 1.35%, 3Q 1.10%, 4Q 1.06%, 1Q 2012 .69%, 2Q .89%. This would at least have some factual basis, rather than some “hunch”... If he/she wants to keep happy campers, then the owner needs to pay attention to what’s going on in the market where you are, as well as taking the overall economy into account. Good luck! Karen Grapevine From: Debbie Wade Sent: Thursday, September 27, 2012 8:55 PM To: [email protected] 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. 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.
