Beauty Room Rental Agreement

$129.00 inc. GST

  • Rent a room in a beauty salon and earn extra income
  • Suitable for all Australian states and territories
  • Peace of mind that your business is legally protected
  • Drafted in plain English by Australian lawyers
  • Complete our Beauty Room Rental Agreement template in under 10 minutes
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What is a Beauty Room Rental Agreement?

A Beauty Room Rental Agreement is a contract to rent a room in a beauty salon/spa to a freelancer, such as a beauty therapist, masseuse or cosmetic practitioner.

The freelancer is self-employed and runs their own business. As an independent contractor, they have their own clients, set their own hours and provide their own equipment. They pay a Licence Fee to the salon to use part of the premises.

If you have a beauty room to rent, our template has you covered! Salon owners and freelancers can both use this contract.

 

Who can use this template?

  • Beauty Salons
  • Nail Salons
  • Tanning Salons
  • Hair Salons
  • Day Spas
  • Massage Parlours
  • Tattoo Studios
  • Waxing Salons
  • Laser Hair Removal Salons
  • Eyebrow and Lash Bars
  • Body Piercing Studios
  • Dermal Therapy Clinics
  • Suitable for all Australian states and territories

 

Do I need a contract to rent a room in a beauty salon?

Yes, we recommend using a formal contract if you’re renting out a room.

It’s essential to manage a room rental properly so that you protect your salon, your clients and your reputation.

Setting out clear guidelines in a contract will make things easier for everyone.

 

What does the Beauty Room Rental Agreement cover?

Our Beauty Room Rental Agreement template covers everything you need to make things official:

  • Licence Fees – will you charge a fixed Licence Fee (weekly/monthly), a percentage of takings, or a combination of both?
  • Bond – the amount you will charge as a security deposit
  • Term of Agreement – e.g. one year
  • Permitted Use – the services they are allowed to carry out at your salon
  • Access and Hours of Work – can they work whenever they want, or only during your salon opening hours? Any restrictions in your lease?
  • Signage – rules for signage
  • Insurance – what insurances do you require the contractor to have and maintain?
  • Operating Expenses – are charges for cleaning, electricity and other utilities included?
  • Responsibilities – use of the premises and associated obligations
  • Inclusions – what does the ‘rent a room’ in the beauty salon include?
  • Marketing – normally, the renter is responsible for marketing their own business, rather than relying on the salon’s existing client database
  • Client Contacts – who owns the client database, and what happens when they leave
  • Records – a record of sales (e.g. receipts) to make sure they are paying you the right amount
  • Termination – how can either party terminate the agreement?
  • Dispute Resolution  – process to deal with disputes

 

How much does it cost to Rent A Room in a beauty salon?

There a few different ways you can charge for renting a room in a salon:

  1. Fixed Rent – the renter pays a set amount per day/week/month
  2. Percentage Commission – the salon owner takes a cut of the renter’s total revenue from clients
  3. Combination – the salon charges both fixed rent AND a percentage of income from the renter

We have included all of these options in our template. You just need to choose the one you want to use.

The actual amount you charge depends on what you negotiate and what both parties consider to be a fair amount.

 

How do payments get processed?

It’s best practice for a freelancer to have their own payment facilities (such as a Square Card Reader or EFTPOS machine).

However, some salons agree to take payments on behalf of the freelancer and then reimburse them each week. If you do this, make sure you keep very accurate records!

 

Is this Beauty Room Rental Agreement template legally binding?

Absolutely!

All of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.

We are affiliated with a commercial law firm based in Sydney.

More Details

How do I work out who pays for marketing?

We have included a marketing clause in the contract.

Usually, the renter is responsible for marketing their own business rather than relying on the salon’s existing client database. If you have complementary businesses, you might decide to share marketing expenses or cross-promote to clients. You could even come up with a package deal for both!

How do I make sure the renter doesn’t underpay me?

We have included a clause in the contract for record-keeping. The renter is required to keep accurate records of all sales.

You can request to see a record of sales (e.g. receipts) to make sure they are paying you the right amount. If they have been underpaying you, you can demand payment of the unpaid amounts.

If they fail to pay, you are within your rights to terminate the beauty room rental agreement.

Differences between an employee and a contractor

Independent contractors generally:

🔹 work for themselves and are their own boss

🔹 are free to accept or refuse work

🔹 control their own working times

🔹 provide their own tools and equipment

Employees generally:

🔸 work in someone else’s business

🔸 are subject to controls on how, where and when they do their work

🔸 are paid a wage

🔸 receive employee entitlements, such as sick and annual leave

Any other requirements?

As an Independent Contractor, they need to have their own ABN, and they’re responsible for managing their own tax and insurance.

Further Information

We recommend you visit the Fair Work Ombudsman website to read more. If you’re an employer, visit the ATO’s website to learn the tax and super obligations for both employees and contractors and read more about the differences between them.

What is sham contracting?

sham contracting arrangement is when an employer attempts to disguise an employment relationship as an independent contracting arrangement. This is usually done to avoid paying employee entitlements. Even if you make an innocent mistake, you can still be fined!

If you’re convicted of sham contracting, you could be hit with a fine of up to $12,600 as well as a back-payment of wages and entitlements.

This agreement makes it crystal clear that you have a proper Independent Contractor arrangement.

FAQ

All of our templates come in Word format (docx). We recommend that you use Microsoft Word on a desktop to fill in the template.

Yes, all of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.

Yes, the template is suitable for all Australian states and territories.

What do I have to do after I download the template?

The template includes instructions on how to use it, as well as helpful comments along the way to guide you. Don’t just take our word for it, read what other customers have said about our products here.

Estimated time to complete the template in Microsoft Word is around 5-10 minutes. We have designed our templates to be very user-friendly.

How often are the templates updated?

We frequently update our template library and provide minor updates to wording and formatting in our documents.

If the law changes, we’ll email you with the changes and updates to add to your existing templates. You have lifetime access, so any updates are provided free of charge.

Refunds

We offer a 14 day moneyback guarantee on all purchases.

We want to make sure you are 100% happy!

We have worked hard to provide quality legal documents for Australian small businesses.

We’re confident you will LOVE our products – but we offer this extra guarantee so you don’t have to worry.

Our no-hassle, 14-day refund policy means that if you are not satisfied, for any reason, we’ll work with you to make sure you’re happy, even if that means a full refund.

Customer Reviews
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Filter Reviews:
AW
12 September 2021
Anna W.
AU AU
I recommend this product
Amazing

I purchased a beauty room agreement and the document too no more than 5 minutes to fill out. The document covered everything I needed to plus more of terms that I've not thought about before. Purchasing this saved me both time, and a lot of money. I highly recommend

ES
30 June 2021
Eve S.
AU AU
I recommend this product
Exactly what I needed.

Only sit that had a room rental agreement contact that was exactly what I needed.

LB
23 March 2021
Leonard B.
AU AU
I recommend this product
Easy As

Within 90 minutes of downloading the Agreement, I had it modified to our requirements and forwarded to the renter. Easy As!

RC
22 December 2020
Rosa C.
Rent-a-room Agreement

Worth the money, this template was much better than a free one I found on google. Definitely recommend this product.

SL
15 November 2020
Simone L.
Happy with purchase

Nice and easy to complete the template. The notes that came with the Word document made it easy to fill in.