Space rent contract question

Nikki8

nicechap wrote: »

In short, loads, which a lawyer will help you with.

There are so many pitfalls in your proposed arrangement its almost impossible to give any sensible advice in a vacuum. As SavvySue asks, we have no idea on what basis your beauty salon operates (freehold property? leasehold? are there other tenants in building?) Does the proposed rent cover rates? water? electric? Who disposes of their business waste? Will they operate set hours within your hours or outside? Who locks up? Who is liable for theft by negligence? What advertising will they do? Do you have copy approval if they used your name or address details? Can they have an apprentice or other staff? etc etc etc

I think you're really overcomplicating this situation....

nicechap

Nikki8 wrote: »

I think you're really overcomplicating this situation....

Maybe, maybe not, but if you already know the answer, why are you asking strangers on the internet?

Good luck.

Savvy_Sue

Nikki8 wrote: »

I think you're really overcomplicating this situation....

Well, let's hope you don't come back in the future with a post which starts "I rented a room in my beauty salon to someone and now ... I need to increase the rent and they say I can't do that / they've not paid for three months / my landlord (mortgage company) says I wasn't entitled to sublet and now they're going to evict me / I had to make an insurance claim and it's been turned down because ... / write your own disaster scenario and convince yourself it won't happen."

Seriously. Paid for legal advice.

jobbingmusician

I do wonder if there's an alternative, though. It's so common for hairdressers and beauticians to rent out chairs that I wonder if they have a professional body who would advise on this, with a standard legal contract. It might be worth checking out your trade body, if you have one, to see if they have any advice.

I really don't know what I'm talking about, so don't take any of this as gospel, but it does seem a worthwhile avenue to investigate.

Manxman_in_exile

Nikki8 wrote: »

I think you're really overcomplicating this situation....

I think you may be right...but what if you aren't?


What if she does injure someone in some way (I don't know - a severe allergic reaction?) and you end up being sued as well as her because your DIY contract doesn't protect you?


What if she damages the property in some way (dodgy electrical equipment > fire?)? Does your insurance cover you?

Manxman_in_exile

jobbingmusician wrote: »

I do wonder if there's an alternative, though. It's so common for hairdressers and beauticians to rent out chairs that I wonder if they have a professional body who would advise on this, with a standard legal contract. It might be worth checking out your trade body, if you have one, to see if they have any advice.

I really don't know what I'm talking about, so don't take any of this as gospel, but it does seem a worthwhile avenue to investigate.

I think JReacher1 tried to link to a standard contract in post #18.


You're right - these are really common arrangements. But I'm beginning to wonder how seriously within the industry liability/insurance issues are dealt with. The OP doesn't seem to want to consider all the implications and seems to want to sort it out with a DIY one to one contract.


I wouldn't rely on a template contract from a trade body as I wouldn't know if it suited my exact circumstances. I'd want proper paid for legal advice. I suspect you wouldn't be able to sue the trade body when things go wrong as they'll have all sorts of disclaimers - "This template is for guidance only and you should seek your own legal advice etc etc".


EDIT: Apols for edit but I'm trying to type this while watching the four man bobsleigh!


I think the point is not to have a contract in place, but to have the right contract in place - this can't be done DIY.


I suspect many beauty salons and hairdressers don't have adequate liability/insurance provision.

Manxman_in_exile

Savvy_Sue wrote: »

Well, let's hope you don't come back in the future with a post which starts "I rented a room in my beauty salon to someone and now ... I need to increase the rent and they say I can't do that / they've not paid for three months / my landlord (mortgage company) says I wasn't entitled to sublet and now they're going to evict me / I had to make an insurance claim and it's been turned down because ... / write your own disaster scenario and convince yourself it won't happen."

Seriously. Paid for legal advice.

Even more forthright advice on the Small Biz board! Not as straightforward as the OP thinks...


(Update - GB boys not doing well in the bobsleigh )

Naf

Nikki8 wrote: »

I think you're really overcomplicating this situation....

Life is complicated, doing business with people doubly so; arranging business between two businesses is full of so many potential pitfalls its crazy. Some of the potential issues have been pointed out to you, and I'm getting worried on your behalf.

"What if..." is easy to dismiss when things are going fine, but then when it happens you're stuck. The best you could hope for is a bill larger than the legal advice will cost; worst case you're out of a business altogether and up in court on criminal charges, all as a result of something your "tenant" did, but which your lease didn't insulate you from.

It really is not as simple as "Pay x for room; I'm absolved of all responsibility". There's a reason that Ts&Cs go on for pages and pages; and that's from years of things going wrong for someone, and lawyers using that experience to tighten future contracts.

JReacher1

Naf wrote: »

Life is complicated, doing business with people doubly so; arranging business between two businesses is full of so many potential pitfalls its crazy. Some of the potential issues have been pointed out to you, and I'm getting worried on your behalf.
.

You are being a tad over dramatic. What the OP is proposing is very common in this sort of industry.

Posters on here seem to be implying she is doing something unusual and risky, when in reality I would suspect the majority of these sort of businesses do things like this.

Naf

JReacher1 wrote: »

You are being a tad over dramatic. What the OP is proposing is very common in this sort of industry.

Posters on here seem to be implying she is doing something unusual and risky, when in reality I would suspect the majority of these sort of businesses do things like this.

You seem to be implying that lots of people doing something somehow reduces the risk; that's nonsense. Lots voted Brexit...