Yes. Salons with chair renters and self-employed stylists sell regularly, but buyers see the income as less secure, because a renter can leave on short notice and take their clients with them.
Chair rental changes what a buyer is paying for. In an employed salon the clients book the salon and the profit comes from the work done there. In a rental salon the main income is the rent from each chair or room, and the clients belong mostly to the stylists who rent them.
What buyers check
- Written rental agreements for every renter, with notice periods and what happens to client data.
- How long each renter has been with you, and whether they have said they will stay.
- Whether the arrangements are genuinely self-employed. If HMRC could see a renter as an employee, a buyer may worry about inheriting that risk.
- Rent actually received, month by month, not just what is due.
Making it work in a sale
Long-standing renters on proper agreements are an asset. Short-notice, handshake arrangements are a worry. If you are thinking of selling in the next year or two, put written agreements in place now and keep the rent records clean.