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Tips for Table renting from a salon owners perspective

22/7/2020

2 Comments

 
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By Katie O’Loughlin of Bubbles & Barks.

Table renting is a good way to bring passive income to your business. There are a few crucial points to follow in order to keep it above board and legal. 
Essentially a table renter is running their own business within your business. As a salon owner you are sub-letting them the space to work and perhaps some bigger equipment, but it is up to them to handle their own appointments. It is vitally necessary that they:
  • •    Have their own business insurance. (Get a copy for your insurance records).
  • •    Have their own phone numbers/website etc.
  • •    Make all of their own bookings. (You can refer to them.)
  • •    Deal with their own clients themselves. 
  • •    Use their own equipment.
  • •    Set their own hours and opening times.
  • •    Have their own way of taking payments. They must not use your card machine.
  • •    Pay their own taxes.
  • •    Rent MUST be a flat rate (daily/weekly/monthly) and NOT A percentage of each dog.
  • •    A contract clearly stating what is included and what is not included in the rent must be provided also who is responsible for repairs and maintenance?
  • •    You must invoice them.
It must be clear to revenue that your two businesses are separate and that you as the main owner are not trying to avoid paying an employee.


It takes a little adjusting in the mind of the main business owner if they are used to having employees and are moving into table renting. Control has to be relinquished. This brings me onto some points I personally think very important for the main owner.


  • •    Find a groomer who is at least as good if not better then you. Your table renter will be riding on your reputation and that can and will go both ways. Elevate your salon by choosing someone you would bring your own dog to. Who knows, you might learn something from them!
  • •    Make sure you and your renter have similar working styles. E.g  Cage free or not, restraints or not. 
  • •    Check you own lease. Some leases don’t allow sub-contracting. Your landlord may need to be updated.
  • •    Do your sums. Spend some time working out what they will cost you in electricity, half your rates etc before agreeing a rate. 
  • •    Price fixing isn’t allowed but your rates should at least be on par, so as to avoid confusion.
  • •    Are you busy enough? You need to be sure you have enough business coming in so that you won’t be competing with your renter. Are you turning clients away daily? Have you stopped doing certain breeds? If yes, then maybe you could rent a table.
  • •    Can you make a clear distinction between your business and theirs so as not to confuse your clients.
There are pros and cons of table renting. Some things to consider before going ahead.
Pros
  • •    A lot less expensive than having employees.
  • •    Less stressful way of bringing in more income.
  • •    Elevates the salon if you choose the right person or people.
  • •    Another business mind to collaborate and brainstorm with. 
  • •    Potential to also rent them retail space.
  • •    You have company during your working day.
  • •    Salon is open even without you there (very good if you have retail).


Cons
  • •    Risk of reputation damage.
  • •    Risk of confusion in business identities with clients.
  • •    No control of finish of the dogs.
  • •    Possibility of complaints from referred clients.
  • •    May increase your income so that you are eligible for VAT registration. If your turnover is over €37,500 you must register for VAT. 
In conclusion, it is important to do your research and interview before you agree on a tenant. Do your sums so you know what to charge and to be sure you are covering all your costs. Speak to your accountant if in doubt. 


I have a groomer table rental contract and a retail shelf rental contract available for purchase for anyone interested. Contact me at [email protected]
2 Comments
Cheryl Wyrick
26/1/2023 06:40:30 pm

I am looking for guidance in table rental. In the USA.

Reply
Michelle Mcintosh
14/4/2024 01:42:27 pm

I’m looking for contracts on renting a table

Reply



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  • Home
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