Rent a Chair

Rent a Chair

Since the pandemic, chair rental has become a hot topic with many salons seeing it as a good option when it comes to reducing cost. But what are the pros and cons?

The pro of renting a chair/room is a guaranteed income per week/month (depending on how you set it up). This can be great for those looking for stability. If you are VAT registered, VAT must be charged on any fee and forms part of your turnover for VAT purposes.

The downside is that any clients done by your tenant are 'owned' by them and not the salon. Furthermore, there is the risk your salon’s reputation is damaged by your tenant, as clients are unlikely to blame the stylist or therapist and will blame the salon itself.

It's also important that if you do have a rent a chair/space agreement, that the agreement and what happens in the salon are the same. That person really does have to be self-employed.

Good Salon Guide members can access a rent a chair template, as well as talk through the pros and cons for their salon as part of their unlimited business advice one-to-one calls.