Booth Rent Lease Should Include the Following:

​

• Define Parties Involved - The salon owner is the landlord; the stylist is the tenant.

Example: “Station rental agreement made January 1, 2020, between Rebekah Smith (Landlord) and Jenipher Jones (Tenant).”

 

• Establish Relationship - State that the stylist is an independent, small business owner & responsible for filing their own taxes. This is required by the IRS.

Example: “The Tenant is an independent business owner & not an employee of the Salon/Landlord.”

 

• Salon location - Address where the space being leased is located.

Example: “The Salon premises to which this lease relates are located in The Best Salon Ever 1983 Pine Avenue, Sometown, Nebraska .”

 

• Payment Arrangements - Rent amount, due date, how it is should be paid (bank transfer, check), late-fees defined. 

Example: “Rent for each week is due in advance on Friday by 5:00 PM. Payment may be made by EFT (Electronic Fund Transfer) or check/money order made to The Best Salon Ever. 

1. If rent check is bounced a fee of $30 will be applied. 

2. There will be a $10 late fee each day rent is late. 

   1. If rent is one week (Friday to Friday) late, this will be a notice to vacate and the contents of the station will be removed and the station will be available to rent to another stylist.” 

 

​​

 

• Length of Lease - Define start & end dates of lease, clarify what happens when this time runs out (continued as month-to-month basis)

Example: “Agreement is valid for 6 months from signing date. After 6 months Tenant will have the opportunity to sign a new 1-year lease or continue on a month-to-month basis honoring terms & conditions of the previously signed lease.” 

 

• Eviction Process -  Must follow state commercial tenant laws.

Example: “Eviction process per the State of Nebraska commercial tenant laws:

1. Written notice will be sent via certified mail to the Tenant explaining reason(s) for eviction.

2. Tenant will have 14 days to vacate Booth & will be responsible for paying rent during this time.

3. If Tenant does not vacate the booth, the Owner has the right to clear out the booth & store belongings in a secure area for up to 30 days. After 30 days property will become that of the Owner.”

 

• Reasons to Evict -  Must follow state commercial tenant laws.

Example:  “Tenant may be discharged (evicted) from the premises for:

1. Disruptive behavior at the discretion of the Owner. 

2. Any illegal or illicit acts on the premises.

3. License expiration or revocation. 

4. Violation of Nebraska State Board of Cosmetology requirements/regulations.

5. Rent more than 7 days delinquent.”

 

 

• Access Times - Establish when tenants can operate their business, 24/7 access to building (given a key or access code), if not 24/7 access then define the salons hours of operation. If part-time arrangement then defines the days the tenant has access to the booth. 

Example: “Tenant is permitted 24/7 access to premises. However, Tenant understands that access may be denied due to regular salon maintenance, updates &/or repair, in which case Landlord will, to the best of their ability, provide advance notice. Tenants are solely in charge of their own business hours & free to schedule client appointments to which they feel best.”

 

• Use of Area - Define what the area being leased can be used for.  This usually includes cosmetology practices and defines that no illegal behavior can take place in the salon.

Example: “Tenant shall have the right to occupy the premises and to operate said booth as a business open to the public performing cosmetology services allowed with a State of Nebraska cosmetology license. Tenant also has the right to operate the area to sell "Salon Professional" retail. Tenants will not engage in unlawful or elicit activities on salon premises.” 

 

•Space - Footage of booth.

Example: “Area leased shall consist of an approximately 10 foot by 10 foot sized wet station upon said premises sufficient to operate salon services.” 

 

• Access Areas - What areas of the salon the tenant has access to (waxing room, pedi chairs, waiting room, break room).

Example: “Tenant has access to the following areas:

1. Parking;

2. Storage in the salon basement; 

3. Waxing/facial rooms;

4. Pedicure chairs;

5. Manicure tables;

6. Hooded dryers;

7. Shampoo bowls;

8. Use of washer/ dryer; 

9. Reception/waiting area; 

10. Public & stylist only restrooms; 

11. Retail area; and/or

12. Break room including appliances.”

 

• Supplied by Landlord - When the salon owner agrees to supply certain things they are taking responsibility for their up-keep.

• Example: “The Landlord is responsible for the following entities, supplies, and/or furniture: chair, station, 1 storage shelf, 1 storage cabinet, 1 retail shelf, shampoo bowls, dryer chairs, pedicure chairs, manicure tables, hot/cold water, electricity, trash services, snow removal, towel service, back bar, refreshments, receptionist,  WiFi, and  webpage listing*”

 

• Supplied by Tenant - What is the stylist responsible for providing and maintaining.

Example: “The Tenant is responsible for providing supplies & tools to perform services, cleaning supplies such as: trash receptacle, laundry basket, laundry detergent, glass cleaner, sink cleaner, Clorox, broom & dustpan, towels, etc.”

 

• Responsibilities of the Landlord - What is the salon owner responsible for.

Example: “The Landlord will be responsible for:

1.  The general cleanliness of the Salon (not including Tenant’s station);

2.  Providing window cleaning service, lawn maintenance & snow removal;

3. Keeping all equipment belonging to the Salon in good working order, in the instance repairs are needed, they will be done in a timely manner;  

4. Paying entity bills in a timely manner which include building expenses, property taxes, property insurance, utilities & Wifi;

5. Not interfere with retail sales of the Tenants clients; and

6. Does not handle any monies intended for the Tenant from clients”

 

• Responsibilities of the Tenant - What is the stylist responsible for.

Example: “The Tenant is responsible for:

1. Tenant, at their expense, must maintain a Cosmetology License, issued by the State of Nebraska and must publicly display said license at booth per State Board regulations;

2. Filing & paying their own taxes (self-employment, sales tax) & obtain all permits & licenses per Nebraska state law;

3. Determining the services they will offer, setting service price & providing their own tools/supplies to complete said services and agrees not to practice outside the cosmetology scope;

4. Completely in charge of their own business hours & free to schedule client appointments to which they feel best;

5. Collecting payment from their own clients after services rendered. They also decide what forms of payment to accept;

6. The orderliness, cleanliness and sanitation of his/her own station and that of any station or common area(s) (i.e. waxing/facial rooms, pedicure chairs, manicure tables) that they use, so that is in accordance of the State of Nebraska Cosmetology Board requirements/regulations;

7. Shall maintain, at all times during the term of lease, comprehensive general liability insurance with an insurance company licensed to do business in the state of Nebraska. Will also ensure The Best Salon Ever is an additional insure & provide the Landlord with a copy of policy within 14 business days of signing lease;

8. Paying for any breakage or damages to the Salon by themselves, their clients or guest caused by negligence or malicious acts;

9. Decorate the booth to their own taste, excluding paint;

10. Stock, price and sell retail to their own clients should they chose to, obtain proper sales tax permits and pay sales tax owed to the Nebraska State Treasurer;

11. Keep the thermostat(s) at 72-degrees at all times;

12. Comply with all statutes, ordinances and requirements of the city of Hastings, the State of Nebraska and Federal authorities;

13. Pay the Landlord for any fines that result in their negligence;

14. Understands that the Landlord will not provide any insurance coverage for the Tenant’s health/safety/property.

    1. The Landlord will not be responsible for any loss of Tenant’s property, whether by theft, fire, riots, strikes, acts of a higher power, or other.

    2. The Landlord will not be held responsible for bodily harm that happens to the Tenant that happens on Salon premises.

15. Responsible for providing the Landlord with IRS Form 1099-MISC for rents paid by January 31 of each year.”

 

• Code of Conduct - How are disagreements handled and how are stylists expected to conduct themselves.*

Example: “Tenants will at all times conduct themselves and present themselves in a professional manner that coincides with the business of the Salon in general. Disagreements and altercations are not allowed to partake when any clients are present and should be addressed outside of the salon.”

​

• Sublease - Can the stylists sublease the space? 

Example: “The Tenant is not allowed to sublease without written permission from the Landlord.”

​

• Walk-Ins - The salon owner is not obligated to provide the stylists with clients, however if they choose to allow access procedures should be put in place.

Example: “Salon walk-ins (includes prospective clients who physically walk-in or call Salon landline or reach out via Salon social media sources) will be handled in this process: 

1. Given to available Salon employees;

2. If no Salon employees are available, the Tenant who arrived to Salon premises first (for said day) will have first choice & so on; 

3. The Tenant agrees to pay a one-time “finder’s” fee of $30/walk-in to the Landlord with weekly rent payment.  The client is then presumed to belong to the Tenant.”

 

• Severability - Refers to a provision in a contract or piece of legislation which states that if some of the terms are held to be illegal or otherwise unenforceable, the remainder should still apply.

Example: “If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect.”

 

• Arbitration - Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments. Arbitration is different from mediation because the neutral arbitrator has the authority to make a decision about the dispute.  {NOTE: Tenants should be aware that the arbitrator is chosen by the landlord and anyone can be an arbitrator, there is generally no legal education or license unless required by State law.  Arbitrators generally favor the landlord limiting the recourse after the judgment.  The situation is also confidential meaning there will be no public record of the bad behavior in question.}

Example: “All claims and disputes arising under or relating to this Agreement are to be settled by arbitration in the state of Nebraska or another location mutually agreeable to the parties. An award of arbitration may be confirmed in a court of competent jurisdiction.”

 

• Entire Agreement - This is where both parties sign in agreement to the stipulations outlined in the lease agreement.

Example: “This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.”