How to Optimize a Spare Room?

Over the years, I have sublet rooms on several occasions, in my salons, spas and health clubs. When it works it can be very successful for all parties, but when it didn’t work out, it was disastrous...
My first piece of advice is to tread carefully. A room sitting idle in your salon doesn’t make any improvements to your bottom line! So here is what I suggest
To successfully Rent Space in your Beauty Salon
  • Check your lease and double check with your landlord that you are permitted to sublet.
  • Do some research, for example – Have your clients expressed an interest in treatments you are not currently providing? What treatments are your local competitors doing well with? Are there any gaps in services in your locality? What are the latest trends? Is it more cost effective for you to sublet space than to introduce new services yourself?
  • Which is more beneficial to you and your salon – to sublet the space for a rent or to do a percentage split on revenue? Personally, I prefer to rent space, as I like to promote and market my business, rather than somebody else’s. If I am working on a revenue split, then the responsibility to get the clients falls on me.
Make Professional and Business like Arrangements
  • Draw up a written contract outlining your terms and conditions, making this document as specific as possible. Be very clear about what you are providing and how much you are prepared to assist your new tenant. For example, are you including reception cover, marketing/advertising or access to your database in your rental fee?
  • Insurance is very important, you will be providing public liability, but you must get copies of professional indemnity insurance from the tenant, as you cannot be responsible for their work.
  • Is the room available for rent per hour/day/week? What is the minimum availability? Charge a deposit, which you can return when the person decides to leave. Your landlord charges you rent whether you are there or not, so you must do the same. For example, if you are renting a room to a massage therapist every Thursday, she pays whether she uses the room or not, as you are holding it for her.
  • Rent must be paid in advance, preferably by standing order.
  • Get references about anybody you are planning on allowing to work in your salon. You have worked long and hard to establish your business. The idea is to add to your business in every way, not to have any disruption.
  • Ask your Solicitor to double-check your contract, to ensure you haven’t omitted anything important.
  • Find tenants who have a clientele to bring with them, that way their clients become yours and vice versa. I suggest getting one tenant in one day per week, and over the months find a second, third and so on. If your beauty salon is open five days per week, aim to get five new tenants providing a range of services new to your salon, thereby expanding your business, without any cost or investment on your part.
Successfully subletting a room can seriously generate more revenue for you, both in the rental income and in new clients coming through your door. It’s definitely worth a try!
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