Business Builders

How to Run a Successful Booth Rental Salon


Image of Hair Salon Chair
Source: Gsphotography |

How to Run a Successful Booth Rental Salon

Are you opening a salon and wondering how you will secure talent? Or are you looking to change your business model around and entertaining the idea of turning your available chairs into booth rentals? Either way, you have come to the right place for salon business advice.


At SALONORY, we have our finger on the pulse of all things salon. Salons are lucky to have a variety of ways to staff their salons, and being able to offer booth rentals is just one way.

While offering booth rentals is a popular business method, they have their pros and cons just like any other model. In this article, we will help you determine whether or not offering booth rentals is right for your salon and business.

What Are Booth Rentals, and Why Are They Popular?

Let’s first look into just what booth rentals are exactly. Instead of hiring stylists to work at your salon full-time, you can offer a booth rental model if you have open chairs. This allows stylists and barbers to rent their chairs and salon stations from you. Instead of having to pay full-time stylists, you will have talent paying you to rent your stations. This model also provides flexibility for stylists and makes it easier to attract talent as many salons are currently facing a labor shortage. Booth rentals could also create an entirely new stream of revenue for you — depending on what your existing business model looks like.


The Drawbacks of Salon Booth Rentals

While there are many upsides to offering booth rentals, there are some drawbacks that salon owners should be aware of. Here are some of the most important factors to consider:

  • Salon owners may not be able to make as much money from the services being offered since stylists are paying to rent the booth.
  • Booth rentals may come and go, providing a lack of stability during slower periods of time.
  • Salon owners may not be able to bond with, build relationships and get to know stylists since their position is most likely temporary.
  • It can be hard to build and establish a culture with a revolving door of talent.
  • The lines can get blurry when it comes to branding and using hair styling products that your salon stands behind. Contract stylists may have their own products they like to use.
  • Salon owners miss out on the opportunity to build a loyal and consistent clientele base since clients usually come and go with stylists.
Image of a salon with two hair salon chairs
Source: Chernetskaya |



How to Run a Successful Booth Rental Salon

Running a booth rental salon may not be for everyone, but if you’ve decided to pursue this type of revenue stream, here are some tips for success that can lead you to run a successful program.

 1. Set Boundaries and Rules

Since stylists will be coming and going, there can be issues with consistency or stylists following ground rules and participating in your salon’s unique culture. To help mitigate this, offer a set of boundaries and rules that you have stylists agree to. Here are some areas we find to be helpful to focus on creating rules around.

  • Attendance
  • Salon Cancellation Policy
  • Rent payments
  • Service profit share
  • Lease terms
  • Salon responsibilities (cleaning, organizing, etc.)
  • Product usage
  • Scheduling transparency


2. Create Lease Terms that Work for Your Salon

If you would like to make your booth rental salon more stable, you can create lease terms for stylists that are more long-term. For example, instead of having stylists sign month-to-month leases, offer incentives for having them sign on for longer lease terms. These incentives could be discounts on rent or higher profit share.


3. Make Rent and Profit Sharing Feasible for You and Attractive to Stylists

Knowing what your salon can handle in terms of costs and income is important to finding the perfect balance in what you charge for rent and how much profit you share with your stylists. Take a look at your finances and keep close track of how the booth rental program is affecting your revenue and costs — negatively and positively.

Hair Stylist cutting client's hair
Source: Puhhha |


4. Show Your Renters that You’re Invested

While these stylists may not be a part of your core staff, their success ultimately determines your success, too. You can let these stylists know you appreciate their time, business and presence by making them feel a part of the salon family.


5. Create Thorough Contracts

Lastly, you will want to create thorough contracts that help protect you and uphold your booth rental program rules. Your contracts should include information about your boundaries and rules, using all hair salon supplies, rent and lease terms, revenue opportunities and more information on dismissal and termination.

Every salon is different. To figure out if offering booth rentals is right for your business, try it out and measure your success throughout the first few months.


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