Hairstylist Salon Booth Rental: Info & Facts

Hairstylist Salon Booth Rental

As Professional Consultants and Resources claim, both chain salon business and booth rental are almost equally popular.

Moreover, both these options beat out independent salons when it comes to market shares.

One other fact is that booth rental is a very incredible and significant part of the market.

Working as a cosmetologist, there is a high possibility that you’ll be working in the booth rental model.

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In such a case, you need to understand how the booth rental works and how you can use it to develop your business.

In fact, booth rental – it is your own business and it is you who’ll be the boss.

No one will be standing near you and telling what you should do and in what way.

While sounding pretty appealing, it can be pretty hard.

You should be able to find the right salon as well as to decide on the best way to manage your business.

In this article, you’ll be able to find info about various significant aspects of booth rental and salon business.

Read here how to become a hairstylist in no time!

Understanding the Booth Rental Business Model for Cosmetologists

If you want to understand the booth rental model properly, you need to know the classification that includes:

  • Payroll employee;
  • Non-payroll independent contractor.

It means that you can be hired by a salon and work under manager/owner supervision or be a self-employed specialist that rents a station that is also known as a booth or a chair.

Applying for the booth rental business model, you can become an independent specialist.

At the same time, the salon owner or manager will be performing as your landlord.

One important point is that this model doesn’t suit everyone.

Nevertheless, if you use the right approach, you’ll be able to achieve great professional and financial success.

How Salon Booth Rental Works

Salon chair rental is an absolutely simple and clear premise.

As a licensed cosmetologist, you rent some space in a salon you like and get a working space, as well as some amenities required for your work.

In simple words, a booth rental can be described as a business within a business.

Starting your own business renting a booth, you should perform such duties as:

  • Promoting your services;
  • Building your clientele;
  • Providing your own products;
  • Handling your own accounting and tax obligations.

It means that you should be a skillful cosmetologist as well as a great business person if you want to make your business succeed.

Also, you need to keep in mind that you should be ready to handle a bunch of administrative responsibilities.

Benefits and Drawbacks of Salon Booth Rental

As a stylist, you need to understand that booth rental has its own advantages as well as disadvantages.

Lots of cosmetologists choose this option as it can provide them with a certain amount of independence.

Working as an independent contractor, a cosmetologist can:

  • Set their own schedule;
  • Manage their own business;
  • After the booth rental fee, keep all of their earnings;
  • Use their favorite product line;

Of course, there are numerous disadvantages as well when it comes to salon booth rental.

Working as an independent stylist, you should be ready for:

  • Maintain their own books, including filing and paying quarterly income taxes;
  • Pay for advertising and market themselves to attract new business;
  • Earn less money while they build their client base;
  • Deal with increasing booth rental fees;
  • Purchase their own equipment and supplies;
  • Pay for their own health insurance and receive no benefits (no vacation time, retirement plan, etc.).

Understanding State Laws

Renting a booth in a salon means that you are going to have a tenant/landlord relationships.

Just keep in mind that each state may have its own regulation when it comes to working space rent issues.

You need to know these lows well so make sure to get in touch with your local Department of Labor in order to get more info.

Make sure you know everything about the rights and obligations of independent contractors and booth renters in your area.

In some states, it is not enough to have a cosmetology license.

You also need to obtain a booth rental and/or independent contractor license.

To be able to work as an independent cosmetologist in Louisiana, you need to have both Booth Rental and Operators license.

At the same time, in Kentucky, you need only an Independent Contractor license to be able to work under this model.

Pennsylvania, Michigan, New York, Colorado, New Jersey, and Virginia, as well as some other states, prohibit a booth rental business model.

Choosing a Salon

If you need to rent a booth, the first thing you should do is to choose a salon.

When it comes to choosing a salon, one of the most important aspects is its location.

You may think that it is a good idea to choose a salon near your home but you need to think well whether it is really good for your business.

The point is that a salon should be visible as well as accessible to your clients.

One other important thing is that it should be clean and well-equipped.

Also, other renters should be real professionals and need to have certain working standards.

It is clear that no one wants to work in a salon that is known for poor-quality stylists that work there.

There are lots of salons that work under the booth rental business model and attract new renters offering various discounts or the first month for free.

It is a great option for those who just enter the field.

In such a way, they can establish themselves while saving some money.

Negotiating a Contract

When it comes to a salon booth rental arrangement, first of all, it should contain a contract between the owner and the cosmetologist.

It is a necessary aspect as it allows you to protect your rights legally.

Also, it is an important point when it comes to establishing your status with the Internal Revenue Service (IRS).

A basic contract should include:

  • The lease rate
  • The length of the contract
  • Language regarding cancellation of the contract
  • What you are entitled to in exchange for your chair rental

Applying for a basic contract, you can expect such amenities included in the arrangement as:

  • Use of a station
  • Use of electricity, water, and credit card machine
  • Use of the shampoo area, towels, hairdryers, and other salon equipment
  • Use of the reception area

Sometimes, you can add some extra amenities to your monthly lease rate including such points as the use of receptionist or the salon phone.

Also, a booth rental arrangement includes such salon owner responsibilities as:

  • Paying the taxes on the salon;
  • Protecting the salon property from damage;
  • Indemnifying the salon from losses resulting from your actions or omissions that harm a third party.

Marketing Your Services

Working in a booth rental business, you need to be a good marketer and know how you can promote yourself and develop your business.

While beginners give preference to booth rental, experienced stylists tend to rent salon space as they already have a great clientele base.

The truth is that there is a whole bunch of methods you can use to promote yourself.

The list includes such options as a web site and various social media platforms.

If you decide to create your own web site, make sure it contains info about your training, experience, offered services, as well as before-and-after client pictures.

One other important thing is the ability to drive traffic including incentives for client referrals, advertising, teaming up with various businesses for cross-marketing efforts.

Protecting Yourself and Your Business

Personal liability, disability insurance, and health insurance are very important for those who want to work as independent contractors and want to protect themselves and their businesses.

Also, it is very important to keep good records and pay your taxes properly.

To make it easier, you can use any one of numerous accounting programs such as Intuit and QuickBooks.

They will help you keep your taces, expenses, and incomes well-organized to make them accessible for tax purposes.

Independent contractors can deduct their business-related expenses including equipment and supplies purchases.

To be able to do it, you need to establish and maintain an effective and concise bookkeeping system.

One other important thing is that as a tenant, you need to know your rights and obligations well.

Make sure, you’ve properly learned the lean’s policies and procedures especially the point that describes actions that may lead to legal action by a landlord.

For example, you may breach your lease if you provide services that aren’t mentioned in your terms of use.

As a result, you’ll be obliged to pay compensation.

  1. Avatar for C. Barker MBA C. Barker MBA

    Is there a source for the law prohibiting booth rental in Colorado? It’s quite common here. Thanks.

  2. Avatar for Shawn Lee Shawn Lee

    I am a salon owner and have kept the same girls for years …Was wondering what the average weekly booth rent is for a very busy salon in a small town …Appomattox va …for ex. Haircuts women/’s cuts/20.00…roots touch ups 65.00..balayage coloring starts at 115.00… just curious I feel I may be too cheap in what I’m charging ….any input would be helpful !!! Thanks !

    1. Avatar for laurel Blackmore laurel Blackmore

      Hi, I own a salon in Watertown NY. A rural town. I charge my stylist $135 a week and my spa staff $160 per week>

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