Question About Renting A Room

[goldstcy]

Im a massage therapist in Michigan.  I currently work in a salon (my aunts) that is an hour away and do about 7 massage a week.  I get a % of the price for the massage wich works out to be 24$/ one hour massage (massage is 40/hr and i get 60%). Its not a lot but I dont have over head I get free styles, cuts etc so I feel that it is an even traid. Im there T-Sat weather I have clients or not.  Today I talked to a woman who has a tanning salon in a town that is 15 min away vs the place where I am at that is an hour away.  She wants to turn it into a day spa type thing.  Anyways what she had to offer was a room for rent ($200/month), she would design the room anyway that i wanted to.  My question is does that seem kinda high for rent?  When I heard that amount I kinda cringed.  I told the woman that where Im at now I did a % (didnt tell her what it was) she said she would be willing to work with me.  But once I got my clientell built up she wanted the $200/month. So dose that seem resonable? And who should pay for the city licencing fee? Its 5,000$ and I dont have that kind of money...she didnt mention it but I know of another CMT that had a problem with it. Sorry this is so long and I hope it isnt too confusing Im just trying to figure out what to do.  I also dont plan on leaving the first salon at the most i would only cut my hours there but i will not leave it They have been GREAT to me.Thank!!!!!   Morgan

 

[Dave]

Question About Renting A Room

Hi!Well, the way I see it, you're "paying" $448/ month with your current arrangement:40% (their cut) is $16 x 7 massages x 4 wks/month = $448.Also consider how much $$ you're paying for gas to drive 1 hour vs. 15 minutes....As for $200 being high for rent, it all depends on your area and maybe the size of the room. When I started out, I rented a *tiny* room for $175, then I moved to a bigger room for $400, but there's a washer & dryer on site, too. But there are places in town that charge $600/month for rent, which seems excessive to me. You would have to start all over again (maybe) as far as establishing clientele, but personally the much shorter commute would be a big selling point for me. Maybe you could even share the room with another therapist to help cut the cost while you're getting established.Remember, too, that with a flat fee for rent, the more work you do, the more you make, and the perceneforum.xxxe of your income that goes toward rent gets smaller & smaller. When you're paying a % per massage, the more you work, the more the establishment gets.But as for the city licensing fee -- $5000?? Wow, that seems unreasonable for a city to ask for licensing. I would check around to see what other establishments have worked out with their therapists. Hope that helps -- best of luck to you!Andrea

 

[musicrocksalot]

I still wonder why people will pay so much per week to rent a single room in a day spa or full service salon when they can set themselves up in their own offices.The benefits to renting at a day spa or salon can be very nice, as the opportunity to trade services (which is indeed nice, as MTs should make an effort to look nice and take care of themselves, too) exists, having the convenience of a receptionist, not worrying about the operating expenses such as power, water, and phones, and advertising are out of the picture, though I have known many therapists to advertise themselves independently, anyway.  If you stay in the salon all day, you also have the advaneforum.xxxe of walk in business.If you work on a % split, work it out on paper and see how much you are really paying to rent these spaces.  You might be amazed.Let's say you are working on a 60/40 split.  If the average massage is $60, and you are doing 10 per week, you have probably already figured out that you are earning $360 per week, before taxes.  But what the salon is keeping as their cut is $960 per month!   I rent a 360 square foot office in a PRIME location with power, security, housekeeping, and water included for $410 per month (including insurance).  Next to that, my biggest expense is advertising (weekly newspaper, internet, and phone book); about $240 per month.  My cell phone is my contact line, which I would have anyway, whether I worked in a salon or not, so I have no need for a phone line in the office.  If I did 10 massages a week at $60, I would be making $600 per week and my minimum expenses would be $650 per month, which is a much better deal.  The advaneforum.xxxe here is I am building myself up rather that someone else, and I am creating job security.  The disadvaneforum.xxxes are having to come up with first/last months' rent, and start-up monies (which can be done very reasonably, as you only need the basics to start with, and you can always upgrade as you go, like I did), and obtaining the licensure and trade name.  I started my office with just first and last months' rent, my table and supplies, and inexpensive/free furnishings.  My ad was already out and producing clients.  I added as I went along, and learned to shop well (Ebay, thrift stores, classified ads, store sales) for the other things I needed.  When you work for yourself, you care more about your business and your clients, you try harder, you extend effort in ways you would never think of, and you are more willing to try new things. It might be an option worth looking into.   I wouldn't mind hearing insights/opinions from other therapists on this matter.... these are just my own experiences.

 

[_smiles n cries_]

I totally agree with Art of Zen in that you can make your own money building your own business and the math speaks for itself.  Are you concerned that your aunt's feelings would be hurt?  I'm actually kind of jealous in that I live in Los Angeles and you can't touch rent for the kinds of prices you're all talking about.  I've thought about it a lot and my biggest hurdle is how do you work without a receptionist at your current space Art of Zen?  Who greets walk-ins, next clients, and those just wanting to make an inquiry about services?  Morgan, good luck in what you decide.  I think that in the process of considering alternatives, you continue to move forward in your thinking and your practice.  Good luck, Joe E.

 

[Dinokitty12 Rip Mj!<3]

Question About Renting A Room

I've thought about it a lot and my biggest hurdle is how do you work without a receptionist at your current space Art of Zen?  Who greets walk-ins, next clients, and those just wanting to make an inquiry about services?   

Good luck, Joe E.

I don't know of any independant therapist in the city who has (or has a need for) a receptionist.  I space my clients with a MINIMUM of 15 minutes between, preferably 30.  It is rarely the case that anyone has to wait, unless they arrive very early.  

Since I am in an interior office building on a busy street (one of the best locations for any business here in my city), I don't get much walk-in traffic, though that may change when I get my light-up sign for the pole outside.  My business is by appointment, so people have to call to see me.  

I have only once had a walk-in, and the circumstances were very suspicious (it was right after my car accident, I had no ads running, and I had gone into my office to use my therapeutic equipment, and even though the lights were off, this man walked right in just a couple of minutes after me, said he passed by and saw my sign (what sign?  I don't have a sign!).  I think he was just checking up on me to see what I was up to, perhaps to "catch" me working on someone.

 

[Elliott N]

Hurting my aunts feelings is one of the things that I am concerned about.  She has helped me out and everyone at the salon is trying to push as much business to me as they can....I dont want to seem ungrateful. I talked to my mother and my best friend about it and they said I should talk to her about it.  But I hate confrenation etc so im kinda.....nervous about doing that. My "5 year plan" is to open a day spa or something along those lines so I do think that working eather one or both places will have its bennafits. Morgan

 

[BeBE Banks]

Your aunt has probably known all along that this day would eventually come.  I wouldn't think there would be any hard feelings, but then, you know her better than I do.  I don't know how to tell you what to tell her, but if this is something you definitely want to do, then I can only tell you that if you let this opportunity go by because you are afraid your aunt will not like it, you will eventually grow to resent her and your job, and it will likely not be a nice place to work.  As it is, you aren't exactly making a killing working in her shop.  Perhaps there is a way that you can step it off slowly, possibly continuing to work certain days for her until she can find an adequate replacement.  If you are only doing about 10 massages a week there, there's no reason why you couldn't offer them just three or four days a week instead of seven.

 

[footballnow2]

Question About Renting A Room

Today I talked to a woman who has a tanning salon in a town that is 15 min away vs the place where I am at that is an hour away.  She wants to turn it into a day spa type thing.  Anyways what she had to offer was a room for rent ($200/month), she would design the room anyway that i wanted to.  My question is does that seem kinda high for rent?

I don't really know what rent is like in your area, but I can tell you that here in Houston I pay more than three times that amount at my current office.  (I know I pay too much, but it's close to home and I get lots of walk-in traffic.)

$200/month for you means that roughly one massage per week covers your overhead.  That's not bad.  Sure, it might mean giving up the free beauty services, but a haircut won't buy your groceries... and you'll probably still be able to barter with your hairstylist anyway.  

While it may seem like a trivial detail, going from an hour-long commute to a 15-minute commute will save you lots of time and money, too.

I can also tell you from personal experience that tanning salon customers are easily converted to massage customers.  The salon is usually in a convenient and familiar location for them and they are already there anyway several days per week.   If you are able to work together on marketing with the tanning salon owner, it could help both of you build your business.

Only you'll know what is the best decision for you.  Best of luck, whichever you choose.

 

[kellywebb]

I wanted to thank everyone for their imput. I am going to talk to that woman about her space on Wed.  I was thinking about doing a % with her up to her getting 200$/ month. Does that sound resonable?  I was also wondering if there are any other questions I should ask her on Wed.   TIA       Morgan

 

[Techno]

The rent sounds reasonable for my area.  I pay $400 a month for a reception area, two rooms to work out of and a private bathroom.  The city licensing fee sounds outrageous for a city business license.  Anyway, I think she will pay that since its her business and you are only renting space.  You leave and she will retain the license and be able to let someone else move in.  Wow, still can't get over a $5,000.00 fee to open a small business.  Local economics must be fantastic for people to pay that or the city council is making sure no one else comes into town.

 

[miss fairy]

The $5,000 is for anyone wanting to do massage in the town.  The reason it was put into place was to try to deter any prositutes (sp?) wanting to open massage parlors. Massage Yaha Thats It.....Massage (wink wink)Morgan

 

[Jae]

Question About Renting A Room

The $5,000 is for anyone wanting to do massage in the town.  The reason it was put into place was to try to deter any prositutes (sp?) wanting to open massage parlors.

I'd like to know why they think that a massage therapist is likely to have $5k that they don't really need, just sitting idle in their piggy bank - or that a prostitute would not.  That's the silliest thing I've heard all week.

 

[Thegustaffa]

In that case who would spend the $5,000?  Would a prostitute who is already breaking the law feel too bad about not paying this fee?  Find a place just outside the city limits or keep driving the hour.  Have you approached any city council members about this?  

 

[Laura]

Question About Renting A Room

The rent sounds reasonable for my area.  I pay $400 a month for a reception area, two rooms to work out of and a private bathroom.

Gator,

What kind of place do you have? In an office park? A multi-business strip mall?

Curious because I wish I could afford that kind of set up. I never thoroughly explored all the options out there.

Jill/Sagetherapist

 

[Layman]

Question About Renting A Room

I'd like to know why they think that a massage therapist is likely to have $5k that they don't really need, just sitting idle in their piggy bank - or that a prostitute would not.  That's the silliest thing I've heard all week.

Yeah, I think the prostitute would have it before the therapist would. They're charging $125 to $175 for "massages". (Knowledge of this courtesy of craigslist. LMAO  ;D )

 

[Lisa]

My office is in a small office building with about 8 different office set ups in it.  All on the ground level and one in the upper level.  Being in a small town helps with the rental rate.