What is a Beauty Room Rental Agreement?
A Beauty Room Rental Agreement is a contract to rent out a room in your 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 from a spare room in your beauty salon/spa. The freelancer pays a Licence Fee in exchange for use of the premises and equipment.
Do I need a contract?
Yes, we definitely recommend you use a proper contract if you’re renting out a room!
It’s really important to manage a room rental properly so that you protect your salon, your clients and your reputation.
Fair Work conducts inspections into Rent A Room arrangements on a regular basis to make sure that they aren’t sham contracting arrangements. Sham contracting is hiring someone as a contractor when they should be an employee. If you’re convicted of sham contracting, you could be hit with a fine of up to $12,600.
Setting out clear guidelines in a contract will make things easier for you, and your freelancers.
We recommend you also download and keep a copy of this fact sheet from Fair Work before you get started so you understand the key differences between an independent contractor and an employee.
What does the Beauty Room Rental Agreement cover?
Our Beauty Room Rental Agreement template includes everything you need:
★ Licence Fees
★ Term of Agreement (e.g. 1 year)
★ Permitted Use
★ Access and Hours of Work
★ Operating Expenses
★ Client Contacts
★ Dispute Resolution
Can I choose if I want to charge the Licence Fee as a daily amount, or a percentage of revenue?
Yes, you can! We have included both options in the contract. You just need to choose the one you want to use.
How do payments get processed?
A freelancer should always have their own payment facilities to take payments directly (such as a Square Card Reader or EFTPOS machine).
From a legal point of view, it’s important to have separate bank accounts and payment records.
Can I customise the inclusions?
Yes you can. We have included a checkbox format for inclusions so you can mark what is included in your agreement and add any extras if you need to.
How do I work out who pays for marketing?
We have included a marketing clause in the contract.
Normally the renter is responsible for marketing their own business, rather than relying on the salon’s existing client database.
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.
Can I use this template for a Rent A Chair arrangement?
This template is suitable for room rental in beauty salons, hair salons, day spas, barber shops, and tattoo studios.
If you want to rent out a chair in your salon, we have a separate Rent A Chair Agreement template for sale in our Shop.