The vast majority of retail leases in America are Triple Net (NNN), including those for spas and salons. This means the landlord is absolved of most risk. Even the costs of structural maintenance and repairs are paid by the tenant – in addition to rent, property taxes, and insurance premiums.
From a business standpoint, triple net leases dramatically increase the tenant’s operational expenses. The tenant may also be responsible for any damages to the property that are not covered by the insurance company.
Most triple net leases are long-term leases and they generally include terms for rent increases. For this reason, it’s critical that you read the lease carefully from start to finish, and know what you are getting yourself into. Don’t fall into the trap of signing a lease just because you like the location or the building – you must understand in detail what you are agreeing to. And remember, many landlords are open to deleting or changing items from the original lease before you sign.
When reviewing an unsigned lease, pay particular attention to these areas, as you do not want to get caught off-guard once you occupy the space:
- Who is responsible for common-area maintenance,
- The parts of the building you are responsible for, and
- The lease renewal rules.
Finally, we recommend that you find a space with a flexible, understanding landlord. The tenant/landlord relationship can substantially impact the renting experience. An unpleasant dynamic can cause the lease term to feel challenging, while a healthy dynamic can mean long-term success for your spa or salon.
As a member of Allied Beauty Experts, we’re here to help with any general questions you have prior to signing a lease agreement. Contact one of our experts today if you have questions, or are in need of General Liability or Property coverage for your spa or salon premises: 1-800-444-7546.