Booth (Salon) Rental Agreement Template

Use our Salon Booth Rental Agreement template to allow a stylist to temporarily rent space in your salon.

Booth (Salon) Rental Lease Agreement

Updated July 11, 2024
Written by Yassin Qanbar | Reviewed by Susan Chai, Esq.

A salon booth rental agreement is a contract between the owner of a business offering services such as hair cutting/coloring, cosmetics, massage, or other related activities and a lessee (independent stylist). This form can be set up on a month-to-month, week-to-week, or fixed-term basis, allowing the lessee to provide their services to the public within the lessor’s business premises.

It clearly outlines terms such as rental fees, payment schedules, and use of salon facilities, ensuring a harmonious and professional working relationship. By fostering clarity and mutual benefits, this agreement helps maximize the salon’s space utilization and allows stylists to grow their clientele within an established business setting.

What to Include

The effective date of the agreement.
The names and addresses of both the salon owner (landlord/lessor) and the hairstylist (tenant/lessee).
The specific location of the salon including street and address.
The dimensions of the booth size (length and width).
The duration of the rental period.
The agreed fixed amount for rent.
Allowed uses of the booth.
A list of equipment and personal property that the salon owner will provide.
Shared services or amenities, such as reception, cleaning, laundry facilities, etc.
Responsibilities for real estate taxes.
The state law that governs the agreement.

Why Use a Salon Booth Rental Agreement
Guide to Using a Salon Booth Rental Agreement
How to Rent a Booth in a Salon
Cosmetology License Requirements
Legal Considerations
Sample Salon Booth Lease Agreement
Frequently Asked Questions (FAQs)

Why Use a Salon Booth Rental Agreement

A booth rental contract is essential for cosmetologists to operate as independent contractors (non-employees) and be recognized by the IRS. This contract sets clear guidelines for conducting business, ensuring transparency, and fostering good working relationships.

Benefits for Salon Owners

Enhancing Professionalism: A booth rental agreement promotes a professional environment where business operations are clear and structured.
Preventing Misunderstandings: The contract helps avoid disputes by specifying rent, lease terms, operating hours, and other important details.
Legal Protection: By clearly defining the terms of the agreement, salon owners are legally protected in various situations, including disputes.
Protection of Assets: The agreement can include terms for repairs, maintenance and damages, which protect the salon’s physical and client assets.
Clear Expectations: The contract establishes what is expected from booth renters, ensuring all parties understand their responsibilities and the scope of their roles.
Permitted Uses and Restrictions: The contract defines the types of services that can be offered in the booth, ensuring all activities align with the salon’s standards and regulatory requirements.
Cleanliness and Order: The agreement outlines expectations for maintaining cleanliness and order within the booth, contributing to the salon’s overall hygiene and professional appearance.

Benefits for Stylists

Business Autonomy: This agreement allows stylists to operate as independent contractors, giving them control over their work and flexibility in their operations.
Preventing Disputes: Clear guidelines about responsibilities and expectations help avoid conflicts, making it easier to resolve issues that may arise.
Providing Legal Reference: In case of conflicts, the contract serves as a legal reference that outlines the agreed terms and conditions, aiding in resolution.
Protection Against Liability: The requirement for liability insurance as part of the contract protects stylists from potential accidents or liability claims.
Permitted Uses and Restrictions: Stylists have clear guidelines on what services they can provide, ensuring they work within the legal and professional standards of the salon.
Cleanliness and Order: The contract’s cleanliness and maintenance clauses help stylists maintain a professional workspace, reflecting positively on their business and the salon.

Guide to Using a Salon Booth Rental Agreement

Understanding a salon booth rental agreement is crucial for both the salon owner (lessor) and the stylist (lessee). Here’s how each party can effectively use the agreement:

For the Salon Owner (Lessor):

Use the agreement to clearly specify the rent, the equipment provided, and the rental period. It’s essential to detail the terms to avoid any future misunderstandings that could arise if the agreement is vague. Being specific helps prevent potential disputes over additional time, space, or equipment that the lessee might claim.

For the Stylist (Lessee):

The agreement is vital for securing the terms of your rental, such as the rental rate and the duration of the lease. Make sure to negotiate and confirm all the specifics about the rental space, including the common area and any parking or storage facilities, utilities, equipment, and other resources you’ll use. This clarity is crucial to avoid unexpected changes in rental costs or terms dictated by the salon owner.

How to Rent a Booth in a Salon

Renting a booth in a salon can be a profitable venture, both for salon owners and hair stylists or massage therapists. Here’s a simplified, step-by-step guide to help you through the process.

Step 1 – Find a Qualified Hair Stylist

Create a job listing on popular websites like Indeed.com, SimplyHired.com, and Glassdoor.com.

Prioritize candidates with a strong job history and ample experience since new stylists might not yet have the clientele to afford booth rent.

Step 2 – Conduct the Interview

Interview potential stylists, focusing on their client base and their reasons for seeking a new salon.

Collect Background Information

Require a resume and completed rental application.

Ask Financial Questions

Are you interested in renting a booth at our salon?
Our monthly fee is $500, covering space, utilities, and amenities. Does this fit your budget?
We offer a 25% rent based on your monthly earnings. Would this model suit you better?

Additional Considerations

Are there any additional financial concerns or preferences you have regarding the booth rental arrangement?
Would you be interested in discussing any special promotions or discounts for long-term commitments?

Financial Benefits

Discuss their interest in a booth rental arrangement and explain the financial benefits:

Predictable Expenses: A fixed monthly rent allows you to predict your expenses accurately, making budgeting easier.
Tax Advantages: Booth rental fees can be deductible as a business expense, potentially reducing your taxable income.
Business Growth: Renting a booth can provide more control over your schedule and client base, potentially leading to increased earnings and business growth.

Step 3 – Perform a Background Check

If the stylist agrees, conduct a background check using services like Orange Tree, GoodHire, or HireRight to ensure they would be a suitable tenant. These services check criminal history, sex offender status, and more. Consider additional checks for professional licenses and education.

Step 4 – Verify Licensing

Ensure the stylist is licensed to operate in your state by checking the state’s Board of Cosmetology database.

Step 5 – Finalize Occupancy

Once the salon booth rental lease agreement is signed by both parties and necessary payments are made, they can start operating out of their new booth. Ensure all agreement details are understood and agreed upon before the stylist begins work.

Independent Contractor Status

Cosmetologists renting a booth in a salon operate as independent contractors rather than as employees of the salon. This status significantly impacts both the salon owner and the cosmetologists in terms of tax liabilities, benefits, and responsibilities.

Cosmetology License Requirements

In most states, cosmetologists are required to obtain a license to legally perform their services. This typically involves completing a certain number of hours of training at a state-approved beauty school, passing a written and practical examination, and paying a licensing fee.

For example, in California, cosmetologists must complete at least 1,600 hours of training. License renewal periods can vary, often requiring continuing education credits to stay current on industry standards and health regulations.

State	Age	Education	Training Hours	Exams	Renewal
Alabama	16	10th grade	1500 school 3000 apprentice within 3 years	Written and Practical	Every 2 years, $80
Alaska	17	High school or equivalent	1650 school / 2000 apprentice	Written and Practical	By Aug. 31 of odd-numbered years, $160 ($240 for instructors)
Arizona	23	2 years high school or equivalent	1450 school	Written and Practical	Every 2 years 60 days prior to renewal date, $60
Arkansas	16	10th grade or equivalent	1500 school	Written and Practical	Every 2 years, $80
California	17	10th grade or equivalent	1600 school / 3200 apprentice	Written and Practical	Every 2 years in odd-numbered years, by the original licensing date, $50
Colorado	16	None	1500 school	Written and Practical	Every 2 years, $32 ($47 reinstate)
Connecticut	None	9th grade or equivalent	1500 school	Written	Every 2 years by the last day of birth month, $100
Delaware	None	10th grade or equivalent	1500 school / 3000 apprentice	Theory and Practical	By Oct 31 of even years
Florida	16	High school diploma	1200 school	Exams	By Oct 31 Group 1: odd years, $40 Group 2: Even years, no fee
Georgia	17	None	1500 school / 3000 apprentice	Written and Practical	Biennially by Mar 31 of even years, $50
Hawaii	16	High school diploma or equivalent	1800 school / 3600 apprentice hours	Written and Practical	By December 31 every odd-numbered year, $100
Idaho	16.5	10th grade	1600 school / 4000 apprentice hours	Written and Practical	Must be licensed for 3 of the last 5 years. Hold an active license in a state with similar requirements or complete additional hours to meet the minimum.
Illinois	16	High school diploma or equivalent	1500 school	Written and Practical	By Sept. 30 of each odd-numbered year, $25 per year
Indiana	18	10th grade	1500 school	Written and Practical	Every 4 years by August 1, $40
Iowa	16	10th grade	2100 school	Written and Practical	By December 31 of even-numbered years, $60
Kansas	17	High school diploma or equivalent	1500 school	Written and Practical	Every 2 years, $60
Kentucky	17	12th grade	1500 school	Written and Practical	Every year between July 1-31, $50
Louisiana	16	10th grade	1500 school	Written and Practical	Every year by licensee's birthday, $25
Maine	17	10th grade	1500 school / 2500 apprentice hours	Written and Practical	Every year in October, $20
Maryland	17	9th grade	1500 school or 24-month apprenticeship	Written and Practical	Every 2 years, $25
Massachusetts	17	10th grade	1000 school	Written and Practical	Every 2 years by licensee's birthday, $68
Michigan	17	9th grade	1500 school / 2-year apprenticeship	Written and Practical	Every 2 years by the end of August, $48
Minnesota	17	High school or GED	1550 school	Written and Practical	Every 3 years, $81
Mississippi	17	High school diploma	1500 school (9 months)	Written and Practical	Submit an application and affidavit/certification of training meeting Mississippi’s reciprocity requirements, and appear for an eligibility interview.
Missouri	17	10th grade	1500 school / 3000 apprentice hours	Written and Practical	By September 30 of odd-numbered years, $30
Montana	18	High school or GED	1500 school	Written and Practical	Biennially by March 1, $80
Nebraska	17	High school diploma	1800 school	Written and Practical	Biennially by Dec. 31 of even-numbered years, $118
Nevada	18	10th grade	1600 school	Written and Practical	By June 30, in every odd-numbered year, $70
New Hampshire	N/A	High school diploma	1500 school / 3000 apprentice hours within 18 months	Written and Practical	Every 2 years by the end of licensee's birth month, $40
New Jersey	17	High school diploma	1200 school	Written and Practical	By Sept. 30 of even-numbered years, $60
New Mexico	17	10th grade	1600 school	Written and Practical	Every 2 years in licensee's birth month, $50
New York	17	High school diploma	1000 school	Written and Practical	Every 4 years, $40
North Carolina	N/A	N/A	1500 school	Board Exams	Every 3 years by Oct 1, $23
North Dakota	N/A	High school diploma	1500 school	Written and Practical	Every year, $15
Ohio	16	10th grade	1500 school	Written and Practical	By Jan. 31 of every odd-numbered year, $45
Oklahoma	16	8th grade	1500 school or 3000 apprentice hours	Written and Practical	Every year on the last day of the licensee’s birthday month, $25
Oregon	N/A	N/A	1800 school 150 hours of safety/ infection control + 100 hours of career development	Written and Practical	Every 2 years by the last day of the month of issuance, $40
Pennsylvania	16	10th grade	1250 school or 2000 approved apprentice hours in 8 months	Written and Practical	Every 2 years, in even/odd-numbered years, by Jan. 31, $67
Rhode Island	18	High school diploma	1200 school	Written and Practical	Every 2 years by Sept. 30, on an odd-even year basis, $67
South Carolina	16	10th grade	1500 school	Written and Practical	Every 2 years by March 10, $52
South Dakota	18	High school diploma	1500 school	Written and Practical	Every year on or before the licensee’s birth date, $25
Tennessee	16	10th grade	1500 school	Written and Practical	Every 2 years, $60
Texas	17	High school diploma	1500 school	Written and Practical	Every 2 years, $53
Utah	17	N/A	1600 school / 2500 apprentice hours	Written and Practical	By September 30th of odd-numbered years, $52
Vermont	18	High school diploma	1500 school / 24-month apprenticeship	Written and Practical	By November 30th of odd-numbered years, $130
Virginia	N/A	N/A	1500 school / 3000 apprentice hours	Written and Practical	Every 2 years, $40
Washington	17	High school diploma	1600 school / 2000 apprentice hours	Written and Practical	Every 2 years, $55
West Virginia	18	High school diploma	1800 school	Written and Practical	Annually, $30
Wisconsin	18	High school diploma or equivalent	1550 school hours over at least 10 months / 3712 apprentice hours + 288 hours of theory instruction	Written and Practical	In March of odd-numbered years, $82
Wyoming	16	10th grade	1500 school	Written and Practical	First time, after one year, then every 2 years, $96
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Legal Considerations

Remember, regulations for booth rental agreements vary by state in the US. Always research and comply with your local and state laws. Below are some specific state requirements:

Louisiana

Requirement: Cosmetologists need a booth rental and operator’s license per law.
Regulating Authority:Louisiana State Board of Cosmetology.

Kentucky

Requirement: Independent contractor license is required.
Regulating Authority:Kentucky Board of Hairdressers and Cosmetologists.

Pennsylvania, Michigan, and Colorado

Policy: These states do not permit booth renting.
Regulating Authority: Respective state boards of cosmetology.

New Jersey

Update: Recently updated its statutes regarding booth renting with the passage of Bill A1507 in January 2024.
Details: Permits chair or booth rentals under specific business arrangements, effective January 2025.
Regulating Authority:New Jersey State Board of Cosmetology and Hairstyling.

New York

Policy: Allows booth rentals under certain conditions.
Regulating Authority: For specific conditions and regulations, check the New York Department of State website.

Booth Renters’ Insurance

As a booth renter in a cosmetology salon, having the right insurance coverage is vital to safeguard your business and professional reputation. Here’s an overview of essential insurance types you should consider:

General Liability Insurance:
- This foundational policy protects you from claims related to third-party injuries or property damage that might occur in your booth. Salon owners often require this insurance and may need to be added as an “Additional Insured” on your policy.
Professional Liability Insurance:
- Also known as Errors & Omissions Insurance, this covers claims arising from your professional services. If a client alleges that their hair was damaged or they are dissatisfied with the outcome of your service, this insurance can cover legal fees and settlements.
Business Interruption Insurance:
- This coverage is essential for independent contractors as it helps cover lost income if an event temporarily prevents you from working. Adding this to your insurance plan can ensure you can meet financial obligations during downtime.
Business Renters Insurance/Property Damage:
- This insurance protects you against costs associated with damage to your rented booth space. If your lease doesn’t cover property damage, having this insurance ensures you aren’t out-of-pocket for repairs or replacements.
Inland Marine Insurance:
- Your professional tools are critical to your work. Inland Marine Insurance covers your tools and equipment against theft or damage, providing financial support to replace them and keep your business running smoothly.

Sample Salon Booth Lease Agreement

Download a template in PDF or MS Word below.