Salon Leasing – How to Be a Smart NegotiatorAugust 15, 2018As a novice in the field, negotiating for a property for your salon might be an overwhelming task. You only know how to run a small business. How can you handle negotiations and get the right property when you’re not even aware of the tricks-of-the-trade? Don’t worry. We’ll guide you through. Know Your Goals! You’re going to be dedicating a significant chunk of your life (hopefully!) to this place. You have to be certain that it’ll offer everything you need. If you’re certain that this property is the one i.e. it offers clear visibility and security, you can try the following tips: – Be Objective Even if this location holds a special place in your heart, you can’t let your emotions get the better of you. If the final number isn’t something you can afford, let it go. Do not give in to the pressure. – Dig a Little Ask about the location’s history, who conducts the dealing for that property, who the previous tenants were and why they left. You don’t want to get any nasty surprises after you’ve signed on the dotted line. – Listen Listen to their concerns and questions and make sure you’ve understood every legal factor properly. When the deal is being made, repeat what you heard to make sure you’ve got it correctly. – Cut Out The Noise Bring a lawyer with you and your business partner if you have one. Otherwise, limit the people to make communication easier. Learning about Your Lease Before visiting the owner, talk it out with a legal professional on the many details of a commercial leasing contract. Note down details on factors like: Relocation clauses Net rent Lease extensions and renewals Signage Licenses and permissions Radius restrictions Remember, you want to be able to save money on this lease and avoid any financial pitfalls. If you approach this situation without informing yourself first, you might end up with a shoddy lease. In addition Learn what the leasing situation is in the neighboring market. Visit new developments in the surrounding area and ask a real estate agent about vacancies and what the basic rates are for operating costs, leasehold allowance and others. This’ll give you a ballpark figure to stick to. Factors that Affect Your Lease Aside from comparable rents and costs, other factors that can affect your contract include: Your term length (how long you’ll be leasing the property for) Your lease cost (charges you’ll be paying for) Favorable clauses (additional clauses such as having the right sublease if you relocate) Default clauses (better known as ‘good guy’ clauses due to which you can have a time period without a penalty within which you can pay rent) Ask Us for Help! Need more help? Contact Salon Income Booster today! From helping customers with salon marketing to improving their income generation techniques, we assist with all matters related to the handling of a professional beauty salon!