Room Rental Rate - Need Input

[xida_loverx]

I am doing some consulting work for a new Alternative Therapies Center in my town. They have a building with numerous small rooms and the idea is to rent them either monthly, daily or hourly at a reasonable rate. As massage therapists, the owners know how tough it is when starting out to come up with cash for room rental when a whole month might go by without getting a client.  I would really like everyone's input on the following three scenarios for HOURLY room rates:1. Center provides: small but adequate sized room with      lighting that dims but NO decor in the rooms.    Therapist provides: table, linens, oils, any decor, any    other massage supplies    $10/hour2. Center provides: small but adequate sized room with    lighting that dims and tasteful decor    Therapist provides: table, linens, oils, any other    massage supplies    $12/hour3. Center provides: small but adequate sized room with    lighting that dims, tasteful decor, and basic portable    massage table    Therapist provides: linens, oils, any other massage    supplies    $15/hourThese are the questions I would like answered.Would you pay each of the above rates? If not, how much would you pay? If all three choices were available at the above rates, which option would you be most likely to choose? (If you'd like to provide an explanation for your answers that would be greatly appreciated but if you don't have the time just the basic answers would be really helpful.)One final note: The going rate in this area for a one hour massage is between $50 - $60 per hour.

 

[oRtEgA]

I would go with the $15 choice, if I was able to set my rates, and if the table was adequate (mainly due to another post of yours).  I honesly would not want to set up my table every time I went there.  It is somewhat reasonable, figuring that you will be tipped on top of the $60 massage, you will still be making 75% of what the client is paying.  Honestly working somewhere in the NY metro area you are lucky to get 40% working somewhere else.  It also saves you time, and saves your back from lugging your table into the facility.  I honestly don't care about decor, yet I do like the dimmer switch which allows me to have enough light to see my clients yet enough so they are able to become relaxed.  Yet I would have hoped they would throw in the linens... but then again you are then sure that they are clean!!! and not left from the last client.But as they get busier, you might have trouble setting yourself on an hourly basis if other therapists are using the room at the time you need it.  But if you are just getting out, the monthly rent might be expensive...

 

[canaan90]

Around here, the average rate for non-spa massage is about $65 for a one hour massage.  When I first started out, I would occassionally rent a room from another therapist for $15 per one hour massage.  The decor was not the best, but okay and the table was provided.  I also had access to a stereo system on which to play music.  I could use his music if I wanted (I didn't like his selection, so didn't take him up on that).  I was also allowed to use his hydrocollator.  I brought my own linens and lotion.  Now that i have my own space, I rent it for $15 per one hour massage.  The therapist has access to my table, bolster, pillows and music.  If they get in a jam and forget something, they are welcome to use my lube, and linens, so long as they launder the linens and return them to me.  I do not rent my room out much.  Just occasionally to someone who might be in a jam for one reason or another.  It is certainly not a money making thing for me.  I just want to help someone else out if I can.  

 

[Dana]

Room Rental Rate - Need Input

 I would really like everyone's input on the following three scenarios for HOURLY room rates:

1. Center provides: small but adequate sized room with lighting that dims but NO decor in the rooms.    

Therapist provides: table, linens, oils, any decor, any other massage supplies
$10/hour

2. Center provides: small but adequate sized room with lighting that dims and tasteful decor

Therapist provides: table, linens, oils, any other massage supplies
$12/hour

3. Center provides: small but adequate sized room with lighting that dims, tasteful decor, and basic portable massage table

Therapist provides: linens, oils, any other massage supplies
$15/hour

These are the questions I would like answered.

Would you pay each of the above rates?

If not, how much would you pay?

If all three choices were available at the above rates, which option would you be most likely to choose?

One final note: The going rate in this area for a one hour massage is between $50 - $60 per hour.

There use of the hourly charge is similar to paying a perceneforum.xxxe to someone.  Based on a charge of $60/session the hourly rent ranges from 17% - 25% of each session depending on the room you use.  Then you must also consider your other expenses and deduct them as well.  

Two examples:

One day with 4 sessions at $60/session = Gross income of $240/day.  Less 17% rent ($10/hour x 4) -- $40 rent = $200.  Then subtract your other expenses which might be about 20% or $48/day (laundry, lotions/potions, gas to get there, phone, table, music, assoc fees, insurance fees, and any other expenses associated with your business) = a net of $152.00/day (or $38/hour).

One day with 4 sessions at $60/session = Gross income of $240/day.  Less 25% rent ($15/hour x 4) -- $60 rent = $180.  Then subtract your other expenses which might be about 20% or $48/day (laundry, lotions/potions, gas to get there, phone, table, music, assoc fees, insurance fees, and any other expenses associated with your business) = a net of $132.00/day (or $33/hour).

My thoughts are that if you see only a few clients the hourly charge wouldn't be to bad, however, when you start to see quite a few clients at that location the rent eats a bigger and bigger chunk out of your income.  If it were me I would want a monthly cap on the total amount of rent paid to the facility.  

Hope that helps.

 

[Billieann]

Interesting scenarios.  I am a new therapist and am considering looking for a similiar type of arrangement to start out.  I do have one question---what are the rates on a monthly basis?  Thanks!

 

[Dark Lord of Truth]

Pandoras_Gift makes a great point re: the $15 option - that is, you don't have to drag your table to and from work everyday.  If it were me, I would go with the $15 option, too.I agree with Intuitouch as well re: getting some sort of room rental "cap" instituted.  As your clientele becomes larger, you'll end up paying out more and more until it might get to the point when you're paying more PER HOUR to rent the room than you might PER MONTH somewhere else.  Only you can know for sure what a comfortable cap would be.  Around here (Central OH), I've seen rooms for rent starting as low as $250 and going all the way up to about $800!  Obviously, what you get for the money tends to make a big difference in the price.  If it were me, I wouldn't want to pay rent in excess of $500 per month - it would be pushing it for me to consider $600.Good luck as you contemplate your decision!  

 

[generaljackass]

I love options, and each one sounds very fair to me.  Everything comes down to time and money.  If it doesn't cost you money, it is going to cost you time.  It all depends on what your time is worth.I think perceneforum.xxxes work wonders for those that are getting their practice started, those that do not want the responsiblity of a stand-alone buisness, or part timers.I always find it interesting how many therapists don't want the risk of paying a set rent when they first start out (for fear of not being busy enough to turn a profit right away) therefore they want the %...however when in fact they do get busy, they want a cap on the monthly %.  As I see it, if the owner of the establishment was willing to take a risk with the perceneforum.xxxe...knowing they (MT) may only bring in minimal income in the beginning, why do they not deserve to profit from that risk?I have said this many times on this board... when you are a MT paying a % per use of room... you usually have very little investment in the space.  You do not have a rent cover if you do not do work...not much stress in that! (verss the owner)  You would not have to pay electric and water each month, not to mention you did not have to pay a deposit for the rent, a deposit for the utilities, renter's insurance (in most cases), and all of the other expenses that vary from situation to situation.  Business does not typically run well between two parties when the risk is so one sided.In the beginning, I looked at my % situation as a gift form the salon owner.  It gave me a running start when I got started, I am still grateful for that chance.  When it came time that I was making it, I was glad that he was profiting from my success because he was so patient in the beginning.  The time came when he decided we should go to a flat rent. I realize not everyone is so generous, so I do think a cap is a smart idea from the MT's perspective, as long as it is a fair profit to the owner.

 

[Ted]

Room Rental Rate - Need Input

Interesting scenarios.  I am a new therapist and am considering looking for a similiar type of arrangement to start out.  I do have one question---what are the rates on a monthly basis?  Thanks!

For this particular situation monthly rent will depend on how often you are using the room since you are paying by the hour.  

You have to know how many sessions you can do per day and how many days of the week you can work.  Once you have those numbers you can figure out (roughly) what your monthly rent will be.

There is absolutely nothing wrong with working on a perceneforum.xxxe.  And yes, for the beginning practitioner who doesn't have an established clientele a perceneforum.xxxe based rent can be a great idea.  My only reservation comes when the perceneforum.xxxe starts eating huge chunks out of the practitioners income, month after month with no end in sight.  

Risk is part of any business -- however, that doesn't mean that a practitioner who's practice takes six months to get off the ground should be paying outlandish perceneforum.xxxes two years later.  This isn't about cheating someone out of money.  This is about protecting one's interests in the long run.  Structuring the agreement where the perceneforum.xxxe has caps after "x" amount has been earned or a sliding scale put in place is just smart negotiating.

This is why it is important to look ahead and work on establishing limits from the start.  Many MP's jump into situations without having 3 year, 5 year and 10 year goals or plans in place to help them make good business decisions regarding rent or perceneforum.xxxe agreements.  While there are a few good eggs out there who will not take advaneforum.xxxe of someone the law of averages say's the majority of people do -- especially when it comes to money.

 

[Pompal 09.]

In the interest of the MT...  So true!  I believe that having a long term goal is important, and an understanding between owner and MT that at a certain time frame (say within 6 months) it would switch to a flat monthly rate...that would be the best of both worlds...the MT would have a fair chance to build up a clientelle with low risk, and the owner would have a cap on the length of time they would potentially loose money.  Reality is that it is rare to start out with a full schedule on the books.  Just look at our boards for proof of that.However...that being said, and getting back to the original post (sorry about hijacking!)   :-[The company that hired the consultant may want to make it clear in the beginning of the contract/arrangement with the MT's that these are the choices... (maybe including a standard flat monthly rent option as well) and if the intention is NOT to provide a cap at any point in time it needs to be understood from the very beginning  so that there are no hard feelings by the MT when the MT is booked and paying out a pretty penny.  That way the MT would have plenty of time to search out other renting oportunities as they were builing their clientelle.

 

[ALco.M]

Thanks for all of the great input so far. Feel free to keep it coming.... Just to clarify. This center will offer the choice of hourly, daily or monthly rates to therapists and they can change their mind at ANY time. That way those that start out using the hourly rate because they have so few clients can take advaneforum.xxxe of a better rate (probably $300/month) when their clientele gets built up. Or of course they can choose to find a monthly rate rental at another establishment at that point. It is totally up to them!Personally I wish I would have had a place like this available to me when I was starting out.  ;D

 

[PCTAF]

Room Rental Rate - Need Input

Great idea about multiple locations--had not thought of that...

 

[Harvey]

Question?

Hi there... I see that your original post was in 2005, and I wonder if you managed to get your business idea off the ground and where you are located.

I have a similar concept/idea that I am working on, and I think it has a lot of potential! Would love to hear how things worked out for you.

Thanks!