How do barber shop chair rentals work?

In the barbering industry, an increasing number of professionals aspire to be self-employed. It’s no surprise that becoming an independent barber is the golden ticket, directly linked to flexibility, higher earnings, and a chance to build your brand. But when you decide to go for it, what type of rental opportunity should you choose?

A barber shop chair rental is a buzzing business model among independent barbers in the US. It allows you to merge the advantages of managing your business with the convenience of working in a fully equipped salon that you don’t have to be responsible for. 

But how do chair rentals work? What are the pitfalls? And how much will you need to shell out? Let Optima keep you posted.

The perks you need to know

If you’re just getting your feet wet in your own thing, a chair rental in a barber shop may be suitable for you. To put it simply, renting a chair (or booth) is when you pay a barber shop owner for the opportunity to work in their commercial space on your own. This makes you an independent entrepreneur and enables you to:

• Set your prices
• Come up with your own barbering service menus
• Modify your schedule on a whim
• Attract as many or as few clients as you want
• Keep every cent you earn (minus the rent)

It’s like having your own small business inside someone else’s salon. A barber shop chair rental brings you a high level of independence and puts the power of decision-making into your hands. You can easily take days off, fit in more clients per day, and kickstart brand-building campaigns as you go. This lets you sharpen your skills in:

• Running your business and planning business activities
• Managing your finances
• Communicating with clients
• Setting the right prices
• Paying your taxes (on time!)

It’s real-world training that prepares you to open your full-blown barber shop in the future.

What to watch out for

Let us guess: you may now be thinking,

“How can a barber chair rental in a shop have any cons?” 

It can, and the primary concern is the lack of stability. If there’s no one in your chair, there’s no money in your pocket, but you still have to pay rent. On top of that, you’re responsible for other expenses, such as:

• Tools and equipment
• Beard and hair care products
• Booking systems
• Marketing and promotional services
• Cleaning
• Insurance and legal coverage

Another con is that you will be a legitimate businessperson who will have legal liabilities. In the US, this means:

• Registering as self-employed (this can be as simple as using your Social Security Number or getting an EIN)
• Paying income tax on your earnings
• Paying self-employment taxes to cover Social Security and Medicare
• Filing annual tax returns
• Having a business license and other permits

Barber shop chair rentals can be a hard path for beginners. However, they are a fantastic opportunity if you already have clients and desire to work independently, particularly if you are skilled at managing your schedule, income, and self-promotion of your services.

Let’s talk paperwork: The chair rental agreement

Whether it is a chair rental or any other format, a contract will always be in place. Before you say, “Let’s do it,” make sure there’s an explicit, written barber shop chair rental agreement, no matter how friendly the shop owner seems. Otherwise, misunderstandings may arise.

Here’s what a proper rental contract should cover:

• How much rent you should pay and when it’s due
• What days and hours you’re allowed to work
• What’s included in the rental (e.g., Wi-Fi, water, towels, support)
• Who provides supplies and consumables
• How the contract can be ended
• Barber shop rules like music, cleanliness standards, and accepted payment methods

It should also list your responsibilities related to licenses and insurance. Most importantly, the agreement protects you if things go awry. There should be no confusion about who gets what or what happens if either side wants out.

If a barber shop owner refuses to sign the contract or tries to control your schedule and pricing while calling it “rental,” that’s a red flag. Our advice is not to be shy about asking dozens of questions at the start to clarify everything.

Booth rental costs in the US

Now, let’s move on to the last part and dissect barber shop chair rental prices. Opting for the whole space is more expensive than renting a chair, and it’s easy to see why. So, you won’t have to fork out thousands of dollars every week for your booth. Breathe.

In smaller towns and basic shops, the average chair rent runs around $100-$150 per week. In NYC, LA, or Miami, especially in premium locations, it can reach up to $1,200 per month. As you can imagine, prices can fluctuate as the market changes annually, especially in large cities where competition between barbers and studios keeps heating up.

Before agreeing to the rent, evaluate the duration of your stay. You can negotiate a better rate with some salon owners if you choose to rent your chair for a longer term (one year, as opposed to three months).

Additionally, consider whether your barber shop chair rental agreement is for a weekly or monthly period. For you, paying $100 per week or $400 per month can be all too important to ignore if your income tends to come in waves rather than at regular intervals.

Chair too small? Go full suite mode

Salon suites are another option to think about. When you opt for a barber chair rental in a shop, you’re working in a common area. Instead, Optima suites are for you only and range from 95 sq. ft. This option can be chosen by barbers who already have a stable client base and want maximum freedom without the expense of a full-fledged space.

At Optima, we provide all the tools and support you need to succeed as a barber. Contact us to get updated on our locations and suites.