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Get started with chair rental: a step-by-step plan

This information is provided by

Netherlands Chamber of Commerce, KVK

You have a personal grooming business. For example, a hair or nail salon. You have too much space left in your place of business and you prefer not to hire staff. In that case, chair rental might be an option for you to reduce your costs. Read how to get started with chair rental.

1. Draw up a rental agreement

If you draw up a rental agreement or lease, you will need to take into account laws for business space rental and include those in your agreement.

Subletting

Are you renting the business premises in which you provide a chair for rent? That means you are subletting. Subletting is only permitted if the landlord or the owner of the premises agrees in writing.

Rent protection

Whether you own the building or are renting, and therefore subletting to your tenant, you will have to take into account rent protection.

If you agree to a maximum rental period of 2 years with your tenant, the lease automatically ends after that period. But if you agree to a longer rental period, your tenant has rent protection in blocks of 5 years. This means you will only be able to terminate the lease without good reason at the 5-year mark, 10-year mark, and so on. Keep in mind that there is a 1-year notice period for this. If in practice your tenant has already rented from you for over 2 years, rent protection automatically enters into effect.

You are only allowed to terminate the lease early if:

  • the tenant does not follow the rules of conduct (this is a standard clause in rental agreements)
  • your business premises is being vacated
  • you have an important reason, such as a mandatory renovation order from the municipality
  • your tenant refuses a reasonable offer for a new rental agreement
  • the zoning plan changes
  • your interests outweigh those of the tenant, such as your financial interests

If you are renting your business premises, and so are subletting the chair, you need to keep track of your own lease with your landlord and the lease with your tenant. If your tenant has rent protection for longer than you do, this might in theory result in them becoming the main tenant after your lease is terminated.

2. Draw up a cooperation agreement

The cooperation agreement sets out agreements on:

  • opening hours
  • purchasing
  • product sales
  • cleaning fees
  • insurances
  • use of computer and equipment for digital payments

Make sure to prioritise the independence and equality of you and the other entrepreneurs in this agreement. That way you avoid false self-employment.

3. Link the lease and cooperation agreements

With a linking agreement you connect the rental agreement and the cooperation agreement to each other. That means that the termination of one agreement automatically leads to the termination of the other. The rental agreement is leading in this. For example, has the lease period lasted longer than 2 years? In that case, the tenant has rent protection and you cannot simply terminate the rental agreement.

4. Calculate the chair price

The chair price depends on the annual operating costs of your business premises. If you rent the premises, you can calculate the rent per m2. You then add the costs for gas, electricity, water, or other energy consumption. You can apply a fixed amount per day or half-day for this. Make sure to charge a rate that is fair to both parties.

5. Arrange your insurance

When you start with chair rental, it is important to think about insurance. For example, insurance against damage to products or in case of legal disputes. Insurance is not compulsory, but it is sensible.

Read more about arranging business insurance.

This information is provided by

Netherlands Chamber of Commerce, KVK
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