If it is mandatory for salons to close do you still charge booth renters?
Tagged: Funding for salon owners
- This topic has 37 replies, 30 voices, and was last updated 3 months, 3 weeks ago by Nikolina Bajazet.
March 18, 2020 at 12:15 am #721086saragosavm
I’m torn on what to do about my booth renters if my salon is forced to close due to a mandatory quarantine. Are salon owners still making them pay. I would feel horrible charging them but then again unfortunately I still have to pay rent and utilities also.
March 18, 2020 at 11:00 am #721105Jen
I was just typing a similar question when I saw this. In my salon I have a mix of employees and renters. I have effectively closed the salon but have a few of my renters that insist on working at their own risk. I would like to know if salon owners are forcing a close or if it is mandated to close how you are handling rent. Full, partial or none? All of my renters that have made the choice not to work already have paid full rent each week. If this becomes longer than a few weeks do you have plans for that? I don’t want to put anyone in a bind but we have to pay bills to stay open. I am at a loss.
March 18, 2020 at 6:44 pm #721136Misty Rutledge
I don’t have an answer.. we have the same question? We were forced to close today by the state and I’ve got 5 girls that rent chairs to pay my overhead.
March 19, 2020 at 5:58 pm #721160Jasey Starr
We have a booth rental salon. We normally charge $100 a week. We told our renters that if they don’t work any at all in a weeks period they don’t have to pay. If they work two days it’s $50 and anything over that is $100. We told them we would see where we were at by the end of next Friday and extend it if needed.
March 19, 2020 at 5:59 pm #721161Nancy Schreiner Ross
What do booth renters do we dont pay into unemployment so how will be helped ?
March 20, 2020 at 2:04 pm #721231Ashley Bollinger
I paid into unemployment when I was a renter. When I filed my taxes I filed as DBA. Now as a salon owner I really pay into it.
March 19, 2020 at 11:03 pm #721191Michelle
Im frustrated that at the state level,DPOR,Health Department etc have let us slip through the cracks.
We cannot effectively guarantee no exposure due to our close contact with our clients yet several people continue to work!
We all have bills to pay but this has been the scenario where I am, I rent a booth in an 8 person salon.
Multiple owner situation, we heard nothing from them as of this past Monday.
Felt as if they should at the least clue us in on what their plan was, we got absolutely nothing until a few texts were sent to question why they were not taking this more seriously.
Their plan was to continue to work bc they have to pay the salon bills incase no-one pays their rent, thats what a contract is for!!!
While I appreciate the fears, we all are afraid of not being able to pay the bills, but with that being said, at what point do you decide public health is more important than the money!
Some simple math just as an example, lets say 4 of 8 work, seeing 6-8 clients each during staggered hours etc and staying under the 10 person rule.
So those 4 stylist see 24-32 clients each day, those clients are more than likely going to other businesses so lets say each person is in contact with 2-4 other people that day, then add in all of their families, lets say 3-4 per family, start multiplying all of it you’re at 500 people IN A DAY!
This is how its spread, people say I feel fine, incubation time is 4-10 days!!!
Im so angry at anyone that continues to keep their salons open, tell me how you’re staying 6 feet away???
The beauty suppliers in my area are a wreck,one person doing it all, or at the other they were told you can stay home but no pay.
I have zero income coming in, am still paying my rent to the owners that are still working.
It sucks but this is the part of self employed that most dont think about.
But Im more concerned with the pubic health at large, severely disappointed that no safety precautions were put in place for us as far as to close up or not.
Thanks for listening and everyone stay safe!
March 20, 2020 at 2:08 pm #721234Kevin Joseph Booker
I’m wondering the same thing. I pay 800$ a week and haven’t worked in a week +. I can’t go on like this or I’ll go broke and on the other hand I don’t want the owner to be in a mess. Most salons on my street in boston are closed till the 1st , for me that would be 2400$ Out with no income coming in.
March 20, 2020 at 2:24 pm #721236Jennifer Daviduk
Not really sure what to do. I feel that if we can be open, as a booth renter I should pay if I choose to be out. But if he government mandates the closure and I am unable to go in and earn money, how am i expected to be able to pay? If it’s not my choice. I understand the owners have to pay, but that is part of the owners risk, is it not? If i get $ from unemployment, i would be ok paying some of it. My rent is more than I would get and I have 2 kids to feed. I was told I wouldn’t have a chair to come back to either way if I chose not to pay. Also been there 11 yrs paying top $ for the area. Was scolded by an owner for not being prepared for a pandemic. Then told if we dont pay them, they cant pay the bill’s either. Seems like we are in the same boat, and they are not prepared either. I pointed that out. If I can’t get money, I can’t pay you. I need to keep $ for me too. Was told it was not her problem.
March 20, 2020 at 2:42 pm #721237tayloredubois
I hope my salon owner doesn’t charge me. I was forced to not work. I was locked out of the salon, and legally I don’t think she can do that because I’m running my own business out of the space. I don’t plan on paying for chair rent when I’m not allowed to work.
Does anyone know (in Canada), if a salon owner can legally not allow you to work if you’re renting?
March 20, 2020 at 2:46 pm #721238tracey shepherd
We are not mandatorily closed as of yet. But we are choosing to close between March 23 through April 13. So that would be three weeks worth of booth rent. Basically there are eight of us and what I did was take our actual salon rent, not including utilities because with no one there the utilities won’t really be bad they will be minimal, and I divided our rent by the number of stylists we have and divided it by 3(for the closure). And that is the rate of booth rent. Made myself as an owner I will just have to pay the utilities as they were minimal. I was included in the number of stylists. And the booth rent is considerably cheaper less than half. But as long as the salon rent gets paid collectively since that is the biggest thing and we want to have a place to go back to everyone is totally fine with it. I personally know of a few salons in our area that are charging full booth rent even if they mandate to close or decide to close, and for people that feel uncomfortable working and want to do their part they still have to pay full booth rent. I personally don’t agree with it. Because in this time we are all scared, and uncertain, and all in the same boat. Whether it is our industry or other industries. That’s just my personal opinion and what me and my salon chose to do. I am the salon owner.
March 24, 2020 at 10:54 pm #721412jeanine oswald
If it’s mandatory shutdown from government For non essential businesses that includes you too not to work. The owner could get fined if anyone is working in there
March 20, 2020 at 3:10 pm #721239Olivia Liberti
I own a booth rent salon. I love my girls and realize we are all in this together. But at the same time, the salon has bills that need to be payed so we all have a place to work when this is all over.
I went through and cut out all unnecessary costs (cleaning services, supplies, retail product etc.) and only added up the absolutely necessary bills that need to be payed to keep the salon afloat.
After getting that number I went through and averaged out each stylist rent check to me for each month and then figured up the percentage that each stylist contributes to the total average rental income each month.
Basically I was able to cut everyone’s rent payment to me in half based off of those percentages. All of the girls were super excited and thankful to have some sort of relief and solution to this.
I also told them that when we are able to go back to the salon that I won’t charge them for any extra days they need to be in the salon to make up for lost time. Whatever that time frame will be.
Hope this helps someone!
March 20, 2020 at 3:54 pm #721244Liz Bridge
I’m a salon owner and we are now closed until further notice. I have been trying to come up with ways to alleviate the stress of rent on my independent contractors while still being able to stay afloat. Here are some of my ideas so far:
1. If you offer your renters a “free week” of rent per year. Have them use it now.
2. Depending on how long we are forced to be closed, instead of asking for back pay on rent upfront – I thought they could “re-pay” by selling retail and using their commission as a form of payment. This way we can also help our retail suppliers (and reps) with a boost in sales after everything goes back to normal.
I agree this is very difficult to navigate, but we need to think positively and think for the greater of all.
I appreciate everyone’s ideas! We’re getting somewhere!
March 20, 2020 at 4:47 pm #721253Jen
I just wanted to follow-up from my last post. But first, l want to say how relieved I am that we are having a civil, honest conversation about all of this. No one was prepared for this and I’m glad to have a space to ask questions. BTC put this question out on IG and it is HEATED over there…
I had already decided to close the salon for my employees and ultimately decided that I had to close the salon to my renters too. With more information coming out about how this virus is spread, it was the only decision I could live with. And, to be honest, my last few hold-outs were relieved that I made the decision for them.
I spoke with two of my senior renters and came up with a plan that we all thought was fair and sounds like a combination of what others have said here. It has always been understood at our salon (and when I was a renter as well) that when you sign a lease to rent it is your responsibility to pay whether you work or not. Like if you take maternity leave or vacation. I do give a free week and have worked with people when they are in a bind, of course. My renters have been with me a long time, value them very much and do what I can if they ever need help.
I ran the numbers and asked for half rent now and determined that we could work out a payment plan for the other half when we come back. I also suggested that they use their free weeks. As of now, the landlord of my building is offering me nothing in the way of a break (which I totally understand as well). I do know that even this may not be feasible for them should this situation last longer than we hope and I will speak with them again and rework our plan.
I suggested that they file for unemployment immediately and they all have.
The last thing I want to add is that if I am given any relief by the government I will pass these saving along to my renters.
March 20, 2020 at 5:37 pm #721257Adriana Marquez
I live in California we were one of the first counties who received shelter in mandate. Now all of California has received it. I rent at a large salon. The current mandate is set for 3 weeks. It sucks negative over $3,000. But rent due at the beginning of April is still doable. The problem will be if this gets extended where it seems most likely to have a full month with no work at the salon & still have to pay just doesn’t feel fair! The owner tried to clean her hands by leaving up to anyone who still want to work (which some of my coworkers probably will) but it’s socially irresponsible & a misdemeanor crime! You will get fined or jail time ppl it’s no joke. In my county it was stated that no one could be evicted for failure of payment so idk if this would apply to booth renters but I’m sure it applies to owners so wouldn’t it be right to then pass down that relief to everyone??
March 24, 2020 at 11:04 pm #721413jeanine oswald
You won’t get evicted now but when the courts open up the owner could take you to court. Maybe come up with a plan maybe they will only charge half
March 20, 2020 at 5:39 pm #721258Leslee Toy
I am not charging rental as long as she & I can’t work. I signed the lease to the building not her. So it’s my rent to pay. I filed for unemployment and hope I get it (seems I will) Good luck and God bless to you all.
March 20, 2020 at 11:20 pm #721265christine peacey
I’m confused here I was under the understanding that us as renters landlords self employed could not collect unemployment ? Anyone?
March 21, 2020 at 12:29 pm #721271Jen
I *think* it is determined by your state. We are in NH where it was just passed that you can apply if you’re self-employed.
March 25, 2020 at 8:24 am #721422Nikolina Bajazet
Im self employed. And I just asked my accountant can I apply for unemployment.and this is her answer:
No. You can’t apply because you were not paying salary to yourself and you were not paying unemployment insurance / this is paid only when you are on payroll. It is not like the other insurances.
Hope this helps. BTW. I’m in NY
May 3, 2020 at 12:36 am #724505Elisa Gary
Would the new Pandemic Unemployment Assistance not be for self-employed. I know in Arizona they hired an independent contractor to put together this system, and plans to open up applications on the 12th.
March 21, 2020 at 9:14 am #721270Michael Uzuanis
We are a hybrid salon of 37 individual salon suites and an 8 chair blow out bar. We occupy 10,000 ft² and our monthly expenses are about $50,000. When we reached out to our landlords we were told that we are fully expected to pay our rent on time. They suggested we look into a small business loan or the other government assistance that seems to be changing daily. I would like to believe it that the government will swoop in and save us but I think most of us know that we cannot rely on that! My wife and I have put our entire life savings and enormous amount of debt to make her childhood dream come true, and we were on our way to being successful until this virus was introduced. We have closed our blow out bar and left it to the individual suite renters whether they would like to work or not. If we are forced to completely close our doors and are expected to pay all of our expenses we will not recover financially and 50 people will be unemployed.
With absolutely no precedent to follow this is what we decided to do.
We offer 2 free weeks of rent per year to all of our suite renters so we are allowing them to take it all now if they choose. We are also allowing up to a 4 week rent abatement for those who have to quarantine or choose not to take the risk. Those that are taking the risk are following a very strict sanitation process. As salon owners we are expecting almost a complete halt in revenue but the SBA loan should carry us for at least a month or 2 assuming we are approved.
I would love to hear what other salon suite owners are doing as we want to ensure the safety of everyone but we also want a place for everyone to come back to when this is all over.
March 21, 2020 at 4:02 pm #721273nicolewilliamson22
There is a salon owner on Instagram that said she checked with her attorney and told her she cannot legally charge her booth renters rent for having to close in the state of California. I’m not a lawyer so I dont know the accuracy of this.
March 22, 2020 at 7:11 pm #721310Steve Geist
Can you provide a link to that? Does this mean the salon or shop’s commercial,landlord can’t charge rent as well, or is the salon/shop’s owner going to be bled dry by not being able to collect booth rents but still having to pay the building rent?
March 22, 2020 at 10:06 pm #721317Jennifer Burris
Hi everyone. I’ve owned studio style salons since 2002. I also still practice as a hairstylist still. This is a hard decision for all of us. Here’s my intake on how to handle everything. After looking at finances for the salon and what the salon could maintain realistically to continue to keep the doors open once this all passes. I made a decision and had an open forum with my stylist via video conference call about being responsible as a owner and stylist. Unfortunately, I had to make a decision that wasn’t easy but I did. I spoke with all the studio renters and explained that they would still have to pay their weekly rent but our releif plan would be as follows:
*If any contractual free week rent is due they can utilize it
*pay what you can and what works for you financially. If that’s nothing we will figure it out.
* Once this blows over we can each sit down on a one on one basis and decide what is feasible for the individual to add to the future rent as they start working again.
One thing we all have to remember. We are all in the same boat. We do what we can for each and help where we can. But keep in mind to have a game plan of what your company can and can’t afford or you’ll be a sinking ship and that won’t be good for anyone when we get back to normal. Please remind your renters that it will be like Christmas again as soon as the flood gates open. They will be exhausted, but it will make up for everything they went through at this tough time.
I suggest letting them know your there for them and will do what it takes to make everyone successful in the end. They need the encouragement and are looking for guidence. Be healthy! Hope this helps
March 24, 2020 at 2:50 pm #721394nickip
See what advice fellow salon owners and booth renters had to share:
April 2, 2020 at 5:09 pm #721685Lisa Myers
Self employed individuals are not the same as sole proprietor business owners. If you own a business with a lease, you have many avenues to seek for relief as compared to an individual renting a chair. A sole proprietor salon owner has SBA low interest loans, unemployment is also available for you, and possibly some relief through your insurance or the Forced Majeure clause within your lease. The tiny booth renter has possibly expanded unemployment they are currently all waiting on, and the salon owner’s mercy, that’s it. In business education, when you decide to open a brick and mortar business, you are taught to save an emergency fund for such times as this. Your level of commitment to your salon should be much higher because you should have a business plan, equipment, a good building lease etc prior to opening. You can’t compare that to a boothrenter who typically is making only enough to live on from week to week and owns minimal supplies. It’s just convenient for salon owners to put a boothrenter on par with a salon business owner in a time such as this when there is no comparison. A responsible business owner would not attempt to squeeze blood from a turnip in lieu of seeking out the relief that is available to their business during this crisis.
April 2, 2020 at 8:52 pm #721688toni policano
I agree with lisa Myers … if you own a salon you should have emergency funds on hands for whatever reason. It is a bad situation for all,but I cannot agree with renters having to pay for a chair they can’t use, even if it wasn’t the owners doing. I think as a business owner, that’s the chance you take.you shouldnt be looking for your people to bail you out of this situation.just my option…good luck to us all
April 6, 2020 at 3:03 pm #723867Lisa Myers
Here are some recent funding initiatives now available to independent salon owners that will cover their expenses so they can remain in business without passing their burden onto the small boothrenter…
There is a SBA-backed loan program The Payroll Protection Program that provides small businesses with short-term forgiveness loans. You apply for them directly through your bank or credit union that your business is associated with.
In addition, there’s an Emergency Grant through SBA that provides up to $10,000. This is a grant that does not need to be paid back providing it is used on rent or mortgage payments for the salon building, payroll expenses or utility costs.
Also, independent salon business owners are now eligible to receive unemployment benefits including a boosted unemployment benefit under the CARES Act as of April 3rd.
April 26, 2020 at 6:13 am #724384Tristine Burnside
I have a new one…In March of 2019 I signed 7 leases with 7 new stylists and because they were from a salon that closed I gave them 1 complimentary month = $750.00 x 7, bought new trolleys carts and business cards. I spent $5,500.00 to add a room to my salon/spa for the nail technician plus 1 complimentary month and of course trolley cart and business cards. The reason I invested is because they had been at the other salon for 25 years and they want to play out their retirement in my space. Calculate what I gave= good? or bad decision?. Well when the virus hit they decided amongst themselves without conversing with me that they would only pay half lease, even though that is a violation of their lease.
I can’t seem to get past the fact that this is a business coup. I am really angry because if they had spoken to me I probably would have given more that what they together decided. 15 of them against me the salon/spa owner…
Please give feed back from stylist point and also owner….Thank you!
June 5, 2020 at 10:20 am #725660Nikolina Bajazet
Hi there! I’m in that position where I been charge for chair that I don’t use. So far I already pay 8000$ for the month I haven’t had access. Now I will have pay again and so far we will be open on the end of the month wbi h is mean i already have to pay for the July and I don’t make a money and God forbid if I will make that money to cover that loss. I’m self employed and I just started to get my PUA. Which it helps to just cover the rent of apartment. So my question is can I check somewhere my right in this pandemic situation. Should I pay or shouldn’t?
Thank you for any kind of help.
BTW. I’m working and living in NYC.
April 2, 2020 at 3:32 pm #721679Lisa Myers
I guess if a boothrenter is ok with paying for a booth that is not available to them, that’s their perogative. But I believe an attorney would protect them from having to pay for something they don’t have access to when they are prohibited from using their booth or station. Salons have SBA and Relief programs to seek out and it’s their responsibility to do so. Don’t prey on your renters who have families to feed to keep your lease or mortgage when you haven’t done your homework as a responsible business owner!!!
April 2, 2020 at 4:46 pm #721684Crystal
It’s not any different for salon owners who don’t have access to their space during this time. Yes there is LOAN assistance that they as Independent Contractors (small business owners) also have access to.
Homework has been done and continues to be done. Any relief I as a salon owner can get will be trickled down to each renter.
This whole thing is a trickle down effect.
Definitely not preying on anyone when they are only being charged half rent with the option of deferment. That’s more than anyone has offered to me as a salon owner and home owner.
Let’s not forget to mention this is not the Owners CHOICE to be closed it is MANDATED.
When anyone commits to a contract it’s important that they take it seriously and save for rainy days like these. It’s the responsible thing to do even for a booth renter who is considered a business owner.
April 17, 2020 at 5:19 pm #724159Lisa Myers
I have read from other boothrenters that their contracts most often state that a booth, station or chair has to be made available to them in order to be obligated to pay. If their contract doesn’t state this, they could be required to pay. If they don’t have a contract, that speaks for itself. Same for a salon owner’s building lease. An attorney can review the contract or lease easily to make a determination.
April 19, 2020 at 10:37 am #724168cornelia anglerau
You are so right it Mandatory closure by Government and disappointed in so many styles who are “lazy” do your homework unemployment even renters can apply. also all the styles that sell these Stupid Kits and selling for less then they would paid for in Salon service!! So foolish to give your year of experience, knowledge so unprofessional for a few bucks. We are all in this together