April 2022, Business

Renting Space for Estheticians

April 1, 2022 | by Aurora Solis

Here’s what you should negotiate in your commercial lease

As the saying goes, there are only three things that matter in property, “location, location, location.” You’ve probably heard that and have shopped all around town, finally finding a place to call home for your spa. Once you find a spot, the nego- tiations begin, getting down to the final price you’ll pay for your spot.

Negotiations are key to getting a great deal, but they can be intimidating if you’re unsure how to prepare. We’ll introduce you to parts of your lease that you should negotiate and leave you with some useful tips on how to get the best deal.

BEFORE YOU NEGOTIATE, CONSIDER THESE
Before taking off and negotiating, there are some things you can do to prep yourself. This will help you have a clearer idea going forward and keep you from an unexpected outcome. To get ready for your negotiations for your space, consider these.

“The best way to negotiate is to know the market and understand the average rent close to where you’re renting, coming ready with a fair counteroffer.”

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#1. THE TIMING
The time between the moment you find your perfect place and the time you move into it is longer than you think. A lot goes into finding the final price before crossing the T’s and dot- ting the I’s.

#2. CONSIDER TERMS
From short term to long term, you have options for the timing of your lease. Consider whether this is a permanent spot or whether you’d like to see how things go before renewing once more.

#3. PRIORITIZE
Part of the negotiating process takes realizing that you might not be able to get all you were hoping for. Know what you’re comfortable being without and what you absolutely must have.

#4. DO YOUR HOMEWORK
Leasing is a big deal, especially when finding a place for your spa. Do your homework and find out all details about the place, like the average rent and how they handle changes to your space.

KEY THINGS TO NEGOTIATE WITH YOUR COMMERCIAL LEASE
Getting prepared is just the first part of the process. On top of preparations, check out these key things that you should negotiate before signing the lease for your spa space.

THE RENT
One of the main things that you should negotiate is the rent. This will be the

amount you pay each month, making it a critical part of running your spa. The best way to negotiate is to know the market and understand the aver- age rent close to where you’re renting, coming ready with a fair counteroffer.

THE TERM
Most terms are one to two years, which is a good amount of time to get a feel for your spa space and ensure it’s work- ing out. Occasionally, you’ll find a lease that’s longer, going up to 5 years or more. That might not be the best term for you as a spa owner, as you’ll need to see how things go before settling in too much.

THE ADDITIONAL COSTS
One little trick that some commercial leases have is hidden costs. These costs can be anything in the lease clause, from paying for your own maintenance or upkeep to fees involving your elec- tricity use. To find out what these entail, read the fine print. This will prepare you to bring them up during negotiations. It could be worth taking higher rent if that’s what it takes to avoid these costs.

TERMINATION FEES
This is an important one, as it’s some- thing that not many renters consid- er. In the termination clause, you may find something that deals with the fees you’ll pay at closing. In some cases, you could be responsible for the entire amount still owed on the lease agree- ment. Be sure to negotiate and fight to pay one month’s rent instead.

RESTRICTION CLAUSES

As a spa, you want to limit any potential competition. It may be in your favor to negotiate to add a clause that restricts your landlord from renting to another spa. This will ensure that you’re the only one in the building so potential clients won’t walk into another place while looking for you.

KNOW BEFORE YOU GO
The key to successfully negotiating your ideal price for your spa space is be- ing in the know. Knowing where you stand will give you more confidence when negotiating and ensure that you’re asking for a fair deal on your commercial lease.

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