9 Things You MUST Know About Renting a Table

Renting a table or booth in your nail salon can be an ideal solution for salon owners and self-employed nail technicians alike! While it can be a good idea, it’s essential that you set boundaries before you start; Check out our top 9 things that you should know before you rent out space in your nail salon.

1. Agree on the terms of the agreement before you start working together

Working with friends can be great, but there can be disadvantages to this as you may already know.

When it comes to renting a table in your nail salon, failing to agree on a structure before you start work can be a recipe for disaster (and many a lost friendship!).In most cases, you will either agree on a fixed monthly rental cost.

You will also have to set out days the space will be available to the renter. Alternatively, you could also agree on a split of income. This is usually 60/40, where the nail tech receives 60% of the ticket value (before VAT if applicable).

2. Product & Equipment

As you’ll be sharing the space, set out some rules! For instance, who will be providing the products and equipment the renter uses?

If the nail salon owner is also sharing their equipment and products, you need to set this out from the start. This will avoid confusion and embarrassment for both parties. No one wants to fall out over nail polish, but crossing boundaries on one side builds up and creates resentment over time.

3. Product Sales

The sale of products is a key income stream for a salon. Make sure you have a clear structure on how product sales will work. If someone is self-employed, they could start selling their own products in the salon. If you don’t want them to be doing this, make sure your Contractor Agreement specifies that they can’t.

Usually, you will discuss this as part of the agreement terms. Often, a percentage of product sales generated paid to the nail tech or artist. This is typically around 10%.

4. Client Ownership

Another area of possible conflict is who owns the client and the client data list. If the table or booth renter is self-employed, they usually have ownership of their own clients. This includes those which they generate and serve from your nail salon moving forward.

In your agreement, include client ownership and protection of existing customer data. This will avoid things becoming blurry months or years down the line.We recommend also keeping separate booking systems and databases to avert potential confusion.

5. Social Media / Use of Brand & Defamation

Another area that is often overlooked is the use of your brand and social media posting. Decide now if you’re happy with the renter using your brand on their social media. This will allow you to keep control of the portrayal of your brand on social media.

Specify the terms both now and in the future when the agreement has ended. Set out the future rules in advance to protect your business in the event the arrangement goes wrong.

Similarly, if you’re the stylist renting, make sure you’re clear on what you’re allowed to post. Before you hit social media, ask if the owners are happy for you to use their logo and branding to promote your service.

6. Salon Cleanliness

Before a self-employed nail technician starts using your space, you should make sure you’re both on the same page about salon cleanliness and how you keep your workspace.

As they are not your employee, once the agreement is drawn up, you will not have the power to control how they work as much, so make sure cleanliness responsibilities are included.

This is especially important if they are on your salon insurance for treatment liability. Similarly, slips, trips and falls can occur if your tenant does not adhere to your rules on tidying up after themselves.

7. Nail Salon Insurance

Hello! It’s time for our favourite subject! It’s also one of the more important points to consider when going into a venture like this.

This shouldn’t come as a surprise, but the question “who handles your Salon Public Liability Insurance?” needs to be clearly addressed in your agreement terms.

Usually, if the salon provides all equipment and products, the renter can be added to the existing insurance policy as a contractor. However, if the renter will use their own products and equipment, they will have to arrange their own insurance policy.

If you rent a table or booth, you should also consider whether you will carry out any other work outside the salon. If the answer is yes, you will definitely need your own cover.

This is because the salon’s policy will only cover you for work carried out for the policyholder. We usually recommend that any self-employed nail technician always buy their own insurance.

This is because, even if the salon’s policy covers you, you might not be covered for everything you need. Having your own cover gives you control over your insurance and means you can work elsewhere with no issue.If either side is unclear on whether they need cover, you can speak to one of our team at Insync on 01200 309516.

8. Accountancy Advice and VAT

Before you rent out a table in your nail salon, speak to an accountant.

Make sure you have a clear plan in place regarding taking sheets, VAT returns, and a payment structure. HMRC has firm guidelines around charge and collection of VAT for space rental. You must be familiar with them and comply from the start of your agreement.

9. Get a formal Legal Agreement

To make sure that the agreement is upheld –make it legally binding. A legally binding Independent Contractor agreement can save a lot of trouble in future. By making it legally binding, you are each protecting yourselves in the long run. A small expense at the beginning can save potential heartache and considerable costs further down the road.

You are now on your way to starting your new partnership! We wish you the best of luck.  Insync Insurance is a great supporter of the Hair & Beauty industry. We specialise in all areas of salon insurance, from hair salons to mobile nail technician insurance.