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Booth (Salon) Rental Lease Agreement

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Booth (Salon) Rental Lease Agreement

Updated October 18, 2023

The salon booth rental agreement is a document between an owner of a business that provides the service of: cutting/coloring hair, cosmetics, massage, or any other related type that may be leased. The form may be structured to be month to month, week to week, or for a fixed term where the lessee may offer their services to the public through the lessor’s business that they are operating.

What is a Salon Booth Rental Agreement?

A salon booth agreement is between a hair stylist that

Once downloaded, the form will require the parties to fill out:

  • The date of the agreement
  • Name and address of the owner (lessor)
  • Name and address of the renter (lessee)
  • Street and address of the premises
  • Approximate length and width of the space
  • Term of the agreement
  • Fixed rental amount
  • Use of premise
  • Equipment and personal property provided by the lessor
  • Real estate taxes
  • State of governing law

How To Use a Booth Salon Rental Agreement

There are two perspectives to consider when analyzing the usage of the Booth Rental Agreement: the lessor and the lessee.

From a lessor’s point of view, the agreement is to be used to define what rental payment, equipment, and timeframe are to be expected as part of the agreement. It is incredibly important to be thorough when establishing the rules for the lessee from the onset. If the form is completed haphazard, the lessee will have legal grounds to ask for more time, space, and equipment moving forward.

From a lessee’s point of view, the agreement is critical for establishing a rental rate. If the lessee fails to agree on rent with the lessor, the lessor stands to increase the rental rate as they see fit. Like the lessor, the lessee should take care to establish every utility, equipment piece, and resource they may be using during their time there.

How to Rent a Booth

In most salons, the owner rents the booths in order to motivate the hair stylists to promote their services. The rent is commonly in the form of a dollar figure ($) plus a percentage (%) of their gross sales. Although this can be a lucrative venture for the owner, he or she must be careful about who they intend on hiring.

Step 1 – Find a Qualified Hair Stylist

person creating job listing on indeed.com

When looking for the right hair stylist, it’s best to make a job listing on the following websites:

It’s best to keep job history and past experience a top priority for any new hire. Generally speaking, a new hair stylist will not have the confidence or clientele to be able to afford a salon booth.

Step 2 – The Interview Process

salon owner interviewing hair stylist

When sitting a potential tenant (hair stylist) it’s best to understand their list of current clients and why they are not currently cutting hair. The best candidates the owner will be looking for are hair stylists with lots of clients that they can easily transfer to the new salon.

  • Collect Background Information

The owner of the salon should collect a resumé from the applicant and have them complete a standard job application. This will allow the owner a chance to find out the background of the individual.

  • Ask Financial Questions

In order to make a deal with a hair stylist, the owner must ask if they would be interested in a salon booth rental arrangement. In other salons, when the owner is promoting the business themselves, usually the hair stylists get 50% of their revenues.

Under a salon booth agreement, the hair stylist can earn more money by paying a monthly set amount and/or a small percent (%) of gross revenue. This gives the owner the security that their booths will be rented with qualified individuals.

Step 3 – Look Up Background Information

salon owner verifying candidate information on laptop

If the applicant did not complete the standard job application, he or she will need to give consent through the background check authorization form. Once consent is given, the owner may begin conducting a background check through one (1) of the following:

All of these services will give a basic check of criminal history, sex offender search, and court records search (limited by county). Add-ons are available which allows additional queries for their professional licenses, education verification, and DMV records.

Step 4 – Verify that Hair Stylist is Licensed

laptop screen showing alabama board of cosmetology search page

It’s best for the owner of the hair salon to make sure the individual they allow to cut hair is licensed within the State. All 50 States have databases for professionals that can be searched by the public.

Search Licensed Hair Stylists – By State

Step 5 – Negotiate the Terms of an Agreement

salon owner and hair stylist negotiating terms of booth rental

After a hair stylist has been approved by the owner the time for negotiations begin. The main item is the monthly rent. If the hair stylist can prove they have a sufficient client list, there is a chance the owner may offer to decrease the rent in the hope other hair stylists at the salon will pick up more business.

Once the details of the rent are established, the rest of the agreement is much easier to go through.

Step 6 – Taking Occupancy

hair stylist entering their new salon

Once the first (1st) month’s rent is paid along with any security deposit, the owner should get access to the premises on the start date of the agreement. The newly hired hair stylist will be able to perform their services out of the salon and continue until the agreement ends.