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Last updated: January 15, 2020

Business Basics for Booth Renters

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Tired of being told when to work, what services to offer and how much to charge for them? Maybe it’s time to think about flying solo behind the chair. If you think you’re ready, read this—and get the total rundown of all the business considerations you need before you venture out on your own.


Know What It Means To Be Solo
As a booth renter, you’re running a small, independent business that’s separate from the salon business. And, as a business owner there is even more to be responsible for, including:


  • maintaining your own set of books and paying your own taxes
  • carrying your own health, liability and disability insurances
  • providing your own marketing, tools and supplies
  • setting prices and collecting payment for services from your clients



Know The Laws
When you become an independent stylist, you go from a traditional employee/employer relationship into a tenant/landlord relationship, which is subject to governing laws that differ from state to state. So, you should:


  1. Learn the laws both nationally and in your specific area.
  2. Consult with a Certified Public Accountant (CPA) about how to set up your books, where to draw the line between you and the salon, and what tax (or other) forms are required to be filed based on your new independent status.



Have The Contracts
Having a written lease agreement and/or a rental contract between you and your landlord makes everything easier, plus it guarantees you’re protected in the long run. Here are some benefits for both.


A written lease agreement will:


  • define your independent status in the eyes of the Internal Revenue Service.
  • define start and end dates for the lease, and have a clause for how to terminate the agreement.
  • state the flat rate for the week or month while outlining what you will receive as a renter in exchange for that fee.


A rental contract, on the other hand, will:


  • grant you the exclusive use of a station within the salon (normally consisting of a chair, mirror, counter or tabletop, and cabinet for storage for your supplies, and the electricity associated with that station).
  • grant you access to different necessary areas (shampoo stations and restrooms), certain equipment and in some cases, certain services or supplies (a receptionist to greet customers and book appointments or towel services).
  • state what is expected of you. Besides playing nice with others and cleaning up after yourself and your clients, you will likely be required to have and display your license(s), provide liability insurance naming the salon as additional insured and be asked to work within the hours for which the salon is open for business.


Consider The Small Things
Ask for a key! Rental salon owners are under no obligation to give you a key to the salon but do have to grant you access to the facility during all salon business hours. However, some rental salons don’t mind offering a key, so always ask!



Understand the retail policy! Salon suites let you sell whatever you want product-wise but in the case of a rental salon, you may want to ask if they’ll allow you to sell from their inventory.


Avoid Blurred Lines! As a renter, you are responsible for collecting fees for your services from your clients, so always use your own processing equipment/service. Also, keep your accounting and client information private and think carefully before diving into salon software that does not provide a firm division between your business and the salon’s business.



Get Some Help
We know—that was a lot to take in. But, it’s all necessary when you’re making the big move from salon employee to independent stylist. And it’s exactly why you need to pick a Booth Renter Management Software that has it all—including allowing owners to manage any or all of their stations as rentals.


One solution you might consider: Rosy Salon Software. Offering scheduling, business management and marketing features, Rosy lets you set your permissions as you see fit. This means you have the option to, for example, let the front desk of your salon manage your schedule and check clients in while your financial and clientele information remains completely private. This keeps the line between you and the salon clearly defined.


Another feature? As a renter, you can use Rosy at one salon, then completely disconnect at any point and plug into another salon account—or operate independently—down the road. Take it with you as you grow your independent stylist career!