Important points of the lease agreement for a beauty salon

Although opening a beauty salon is an exciting endeavor, there are many factors to take into account beyond the design of your pedicure chairs and the color of your nail polish. Comprehending the terms of your commercial space lease is an essential part of opening your salon. This document has the potential to significantly impact your operations and shape your business environment.

Above all, be sure to carefully review the lease’s provisions regarding rent and payment schedules. It’s critical to comprehend the financial obligations, including any prospective increases over time, in order to properly manage your budget. Pay close attention to specifics like security deposits and any extra expenses that might affect your profit margin, like maintenance fees.

The length of the lease and the options for renewal are also significant factors. If you’re testing out a new location, a shorter lease might seem appealing, but a longer lease can provide stability and possibly better terms. Make sure you have the option to extend your lease in the event that your business succeeds by looking for renewal clauses.

Finally, pay attention to the details of the lease, such as any limitations on renovations or signage. These may have an impact on the layout of your salon and the way you advertise it. Later on, you can save money and time by making sure these components are in line with your vision.

You’ll be better able to make decisions and position your beauty salon for success right away if you focus on these important details.

Lease agreement for an empty space

First and foremost, the rental agreement lists the requirements that must be met:

• cost;
• object;
• period of validity of the agreement;
• date of signing and place.

These are necessary requirements; if they are not met, the deal is not finalized and will not have legal ramifications. In other words, the parties will not have any rights or obligations following the signing of the contract.

We will delve deeply into each section of the document.

Object

Information that enables you to precisely identify the rental object—st. 607 of the Russian Federation’s Civil Code—is contained in the agreement’s text. According to Article 604 of the Russian Federation’s Civil Code, if they are not present, the contract is deemed not completed.

A real estate object is defined in accordance with a set of its distinct qualities that are absent from other objects. These standards consist of:

• floor;
• name;
• address;
• inventory number;
• area (total and rented);
• functional purpose;
• cadastral passport.

A plan or, alternatively, a building project that shows the location of the rented premises, or a portion of it, must be attached. In doing so, you can safeguard the tenant and identify the object with greater accuracy.

Landlords occasionally advertise illegal structures for rent; these structures are not legally owned and lack permits. Although it is legally prohibited to give such objects away (p. 222 of the Russian Federation’s Civil Code), few people are deterred by this fact.

If you do choose to rent such a space, the lease must state clearly what will happen in the event that the space is liquidated—that is, in the event of demolition, collapse, or arrest. In the event of such a force majeure, the landlord’s liability measures must be specified.

Rental cost

The amount that the tenant pays the landlord for the use of the premises, in whole or in part, is known as the rental cost.

The price is deemed an essential condition of the transaction by Article 654 of the Russian Federation Civil Code, meaning that the agreement will be void if the rental price is not specified. Rent can be paid systematically, or in one lump payment. The text specifies the precise (fixed) amount. Paying with counter services is acceptable instead of cash.

It is essential to specify what is included in the rent in the agreement’s text. In the event that this isn’t mentioned, the landlord is free to raise the rent to cover rising utility costs, VAT, and other costs.

The Civil Code’s Article 614 allows for the specified amount to be changed at the request of both parties, but only once a year. Anything else that is prescribed in the text is not acceptable. It is better, in the landlord’s opinion, to state that the cost will not change for the duration of the contract.

Term of the agreement

The duration of the agreement is not related to the necessary conditions and may be left out of the text. However, the term is very important when registering the contract. State registration is required when a lease is signed for a period of one year or longer. The transaction is deemed not concluded if it is not specified and has a term longer than a year.

When there are multiple tenants, one of them registers the agreement (Article 51 Federal Law No. 218).

It is preferable to draft a transaction for a duration longer than a year, as the registration of the agreement removes a lot of potential risks. For instance, the tenant will guarantee that it is signed by a legitimate party with the authority to vacate the property, that the property is free of liens, and that the tenant is debt-free.

Stability in legal relations is provided by a substantial portion of the transaction.

The drawback is that tenants frequently pay the registration fees. It will be required in the future to register additions and modifications to the agreement’s text.

The agreement is concluded for an indefinite period of time when the term is not specified in the text, as per Article 610 of the Russian Federation’s Civil Code. This implies that the transaction may be ended at any time with at least three months’ notice given to the other party at the request of one of the parties. It is preferable to state the validity period up front if the tenant intends to work with you for an extended length of time.

Extension of validity

According to Article 621 of the Russian Federation’s Civil Code, the tenant has the first choice to complete a repeat transaction after the lease expires. You may state in the agreement’s text that this rule does not apply; this is permitted by law.

There are two methods to increase a legal relationship’s validity:

• renew the lease. The old document ceases to be valid, a new one is signed on different terms. If the landlord wants.
• prolongation. The old agreement does not lose its legal force, but is simply extended.

Since the other party cannot alter the terms in this situation, the tenant benefits from the latter option. An automatic prolongation occurs. If the renter keeps using the property after the lease expires and the landlord does not forcibly remove them, it is still in effect. After that, the transaction is prolonged indefinitely. However, the tenant does not benefit from an incorrect term of validity of the agreement.

There may be provisions in the document’s text that forbid automatic prolongation.

Acceptance of the object

Acceptance and transference are crucial actions. The parties frequently stipulate only that non-residential property may be transferred for rent, which is incredibly incorrect and may hurt the tenant in the future if issues with the property arise. For instance, it will be impossible to determine which premises are rented during court proceedings if the object is difficult to identify. As a result, the claim will be denied and the contract will be deemed to be unfinished. As a result, the agreement needs to include specific details (such as the floor, area, and cadastral number).

A citizen who has been granted permission by the organization’s constituent documents to carry out these tasks signs the act and the agreement on behalf of the landlord, legal entity. Entrepreneurs are likewise subject to this rule.

One of the traps of a lease agreement is that the act proposed by the landlord may contain a clause stating that the premises satisfy the terms and the party to the agreement has no claims. The primary risk associated with this wording is that some of the premises’ flaws may already be known when the business is in operation. It is important to note, however, that no obvious flaws were discovered. This will enable you to sue and demand damages in the event that flaws are discovered.

Repair of non-residential premises

After the transaction terminates, the landlord pays the full cost of any improvements made to the property. Since people frequently attempt to avoid financial obligations, this item ought to be in the agreement.

Other expenses, like those included in the monthly fee, may be specified in the contract. Compared to compensation received after the contract is terminated, this is more profitable.

A sample lease agreement for a non-residential space used by a beauty salon can be found below.

The contract of sublease of the premises

The parties in this instance are:

• Tenant – the one who was the first to receive the right to temporary use of the premises;
• Subaredator – person or group of persons who have entitled to temporarily use the premises from the tenant.

The remaining guidelines for drafting the agreement adhere to the standards of a traditional lease agreement.

The lessor must grant the tenant permission to rent a space, and this authorization must be stated in the lease. Either an independent agreement is drafted, or consent is included in the text of the document. The rights of the tenant supersede those of the subtenant. For instance, if a hair salon signs a lease for non-residential space, the subtenant is not permitted to use the space for the sale of cosmetics. As such, it is your responsibility as a subtenant to become acquainted with the main lease agreement first.

The associated agreements will automatically expire upon the termination of the tenant’s agreement. That is, according to Article 615 of the Russian Federation’s Civil Code, the sublease will automatically terminate.

According to Russian Federation Civil Code Article 618, early termination of the agreement also means ending related transactions. As a result, a clause requiring the first tenant to give notice in advance of the primary lease agreement’s termination must be added.

Rent of an existing salon

The features of a ready-made space that is rented out include furniture, equipment, and occasionally staff. To protect themselves, the tenant needs to consider them. This group does not include renting a desk and chair for a beauty master, among other things.

Compliance with legislation

An item designed to offer a variety of services is referred to as a beauty salon (hair salon, cosmetology room, solarium, massage room). For them, there are standard prerequisites. 2.1.2.2631-10 is SanPiN. They cover public utilities. These consist of things like having a staff restroom, a waiting area, and a cloakroom. More about SanPiN’s requirements.

The premises rented for a beauty salon must have a medical license and meet SanPiN 2.1.3.2630-10 requirements if it offers medical services, such as medical pedicures. Verify the licenses and all relevant paperwork before signing a lease for an existing salon or office.

Acceptance of the object

An inventory of the current property must be made before accepting the location. The completed form needs to be appended to the massage parlor or beauty salon lease text. There are two draft copies of the document. Tenant keeps one, while the landlord receives the other.

It makes sense to purchase portable equipment if you need to buy extras. You will then be able to take what you need with you. It is stated in the text up front who will pay for stationary device purchases.

Rental cost

The sum consists of:

• payment for the use of the building;
• VAT or utility bills;
• equipment;
• depreciation of equipment;
• established customer base.

This is factored in when determining the total cost.

A sample lease for a beauty or hair salon can be found below.

Errors when concluding a lease agreement for non-residential premises

The tenant party to the agreement frequently commits errors, mostly in the following areas:

• state registration. The tenant enters into a written transaction for a period of less than a year, preferring to save money, but often the person is not aware of the other party"s ability to terminate the agreement at any time. Therefore, even greater financial losses have to be incurred;
• termination conditions. Regulated by Art. 619, 620 of the Civil Code of the Russian Federation, but sometimes the parties enter their own reasons without realizing the consequences. For example, the tenant agrees to a condition on unjustified unilateral termination of the transaction. Although, if a person decides to unexpectedly terminate the agreement, the business may collapse;
• repairs. If issues related to payment for improvements are not settled in advance, serious legal disputes arise. Often, tenants do not pay attention to the condition that contains the fact of the absence of compensation from the other party. If equipment or tools were purchased, then it is much easier. After all, there is an opportunity to take them with you at the end of the term. But if something inseparable is purchased, such as flooring, problems arise. Then it turns out that the tenant did not pay attention to the clause indicating the absence of compensation;
• security deposit. There are situations when a sum of money was paid to insure the landlord if any property is damaged or the monthly payment is not received. When this condition exists, it is necessary to clearly state under what circumstances the payment is returned. Because many landlords refer to minor defects or try to find breakdowns in order not to return the deposit.

Ways to protect the rights of the tenant

Initially, the tenant is entitled to make an oral demand to safeguard the rights outlined in the lease and as required by law.

The following situations give the other party the right to file a lawsuit against the landlord:

• the owner or landlord of the premises creates barriers that prevent full use of it – for example, does not give the keys, restricts access;
• defects were revealed that could not, for objective reasons, be seen during the initial inspection;
• the landlord refuses to carry out major repairs;
• the premises have become completely unsuitable for use.

The parties may establish any obligations; this is not a comprehensive list. The primary factor is that they don’t go against the law. As such, the tenant has the right to require their fulfillment if needed.

It’s critical to read the lease agreement carefully when renting a location for a beauty salon in order to guarantee a successful and seamless operation. To prevent surprises, pay close attention to specifics like the lease term, rent amount, and payment schedule. Make sure you are aware of the obligations regarding upkeep, any limitations on salon activities, and the procedures for extending or terminating the lease. Unambiguous agreement on these points promotes a healthy business environment and helps avoid conflicts.

Tenant"s memo

Tenant should consider the following details when drafting an agreement:

• an accurate description of the property with a plan, if necessary, make an inventory of the property;
• conditions on possible compensation for improvements to the premises;
• indicate the reasons due to which the other party has the right not to return the deposit, if any, and it is better to avoid transferring funds to ensure the fulfillment of the requirements;
• prescribe the term and the possibility of extension;
• check the compliance of the premises with the requirements of SanPiN;
• for tenants of an equipped operating salon with medical services – check for a medical license;
• check the clause on the terms of termination of the agreement.

Pay close attention to the property’s condition and do your best to inspect it for any potential hidden defects in addition to registering the lease in writing.

Typically, during an operation, the following become visible:

• Mold;
• Violations in the operation of communications;
• Violation of sanitary standards, and not only SanPiN for household services. For example, excess of harmful substances in the air – acetone, hydrochloride, mercury;
• Violation of fire safety standards.

It is only with a thorough approach to leasing space and an in-depth examination of the product that you can start your own lovely business and steer clear of future problems.

Share with friends!

Popular on the topic Business

How to design a logo for a brow artist or brow studio

How to use Avito to advertise a beauty parlor or beauty school and attract more customers while spending less money

How to take portfolio-worthy photos of a manicure

The layout of a medical book

How to create a master or manicure studio brand list

Unusual beauty salon layouts and ideas

A beauty salon’s inventory and cleaning solutions

Extension of interior manicure services with unique spa techniques

How to start a nail salon or business

Interior design of a cabinet by Brovist

Section of the magazine

Express your opinion or ask a question! Cancel the answer

2 comments on “Important points of the rental contract for a beauty salon”

Igor

During the fall and winter months, the surrounding area is completely covered in ice. Customers trip and fracture their hands on the legs! How is the lessor required to keep the customers’ safe route to the rented room? I appreciate your response.

Editors

Hello, Igor! It is difficult to say without knowing the details. The owner of the building is responsible for the maintenance of the adjacent territory. If the contract does not expressly state the landlord"s obligation to maintain the adjacent territory (most likely so), then there are Rospotrebnadzor requirements for the maintenance of public places, the frequency of their cleaning, etc. If the landlord ignores written requests to him. In this case, it is necessary to document the landlord"s failure to fulfill his obligations – draw up reports, take photos and videos of violations. If you independently eliminate the consequences of the landlord"s inaction – then record these facts in writing, with confirmation of the expenses incurred. Then, contact the landlord again – not only with a demand to eliminate the violations, but also to pay for the expenses you incurred, then to Rospotrebnadzor, to municipal authorities.

Key Point	Description
Lease Term	Specify the duration of the lease, including start and end dates.
Rent Amount	Clearly state the monthly rent and any additional costs like utilities or maintenance.
Security Deposit	Mention the amount and conditions for returning the deposit.
Permitted Use	Define the allowed

A vital first step in starting or running a beauty salon is obtaining a good lease. It can be helpful to read the terms carefully in order to prevent future problems.

Important details like the rent, length of the lease, and terms of renewal should be understood and agreed upon in advance. It’s also critical to take into account any provisions pertaining to upkeep, adjustments, and subleasing.

Keep in mind that a successful business operation starts with a well-negotiated lease. It can make all the difference to take the time to thoroughly read over and, if needed, seek professional advice.

Video on the topic

All about inspections and rent in a beauty salon (Evgenia Paleeva. May) 15th Council

Business premises. Features of concluding a lease agreement

Lease agreement for premises for business. Registration and how to do it correctly.

LESSON 4. HOW TO PROFITABLY AGREE ON RENTING PREMISES

❓WHAT A MASTER NEEDS TO KNOW WHEN CONCLUDING A RENTAL AGREEMENT|LEASE AGREEMENT FOR BEAUTY PREMISES