What costs come with renewal or relocation?
Higher monthly rent, security deposit increases, first and last month’s rent at a new location, plumbing and electrical for stations, signage, permits and moving.
Salon build-outs are plumbing-heavy, so a new space without existing salon plumbing can cost far more. Compare spaces with that in mind.
Renew or move?
Compare total costs over the lease term, including build-out, downtime and client retention risk. Moving nearby keeps most clients; moving far may lose some.
Negotiate renewals early. Landlords may offer improvements or concessions to keep a reliable tenant.
Read the renewal terms carefully. Some leases include automatic increases, common area charges that rise each year, or requirements to restore the space when you leave. Others give you an option to renew at a set rate if you notify the landlord by a deadline; missing that deadline can cost you leverage. Mark the notice date on your calendar a year ahead.
If you relocate, think about the shampoo area first. Water heater capacity, drain lines and venting for chemical services drive both cost and timeline. A space that was previously a salon can save weeks and a large share of the build-out budget.
How do I keep clients during a move?
Announce early, keep the same phone and booking links, offer a grand reopening event and minimize downtime.
Clear communication keeps most clients loyal. Update map listings and websites the day you move.
| Factor | Renew | Relocate |
|---|---|---|
| Upfront cost | Lower | Higher |
| Rent | Increase likely | Varies |
| Client retention | High | Depends on distance |
| Build-out | Minimal | Plumbing and electrical |
Worked example: relocating across town
A salon averaging $70,000 in monthly deposits relocates to a larger space nearby and needs $20,000 for deposits, plumbing, signage and moving. Using an illustrative factor rate of 1.23, $20,000 would mean $24,600 repaid over roughly 6 months: 26 weekly payments of about $946.
That works out to about $4,100 a month, or 5.9% of the $70,000 this business deposits monthly, and the total cost of the money is $4,600. Keeping downtime short and clients informed lets the salon’s revenue continue while the payments are made.
For comparison, repaying the same $24,600 over 4 months would lift the monthly outlay to about $6,150, or 8.8% of deposits, and a shorter term can come with a lower factor rate, so comparing both versions side by side is worthwhile.
| Average monthly deposits | $70,000 |
|---|---|
| Amount funded | $20,000 |
| Factor rate (illustrative) | 1.23 |
| Total repaid | $24,600 |
| Cost of the funding | $4,600 |
| Term | about 6 months |
| Weekly payment (26 payments) | $946 |
| Payments as a share of deposits | 5.9% |
Who this fits
Usually a fit
- Salons facing lease renewal or relocation
- Owners moving to larger spaces
- Businesses with stable client bases
When to pause
- Owners without a lease decision
- Salons with reserves
- Startups without deposit history
What you’ll typically need
- Recent business bank statements
- Lease or LOI
- Business details
Frequently asked questions
Can funding pay a security deposit?
Yes; working capital can cover deposits and moving costs.
Should I negotiate renewal early?
Yes; early negotiation often helps.
If I apply today for a lease deposit or move, when could funds land?
With statements ready, a salon owner applying for a lease deposit or move typically hears back the same day, and approved funds tend to arrive in one to two business days.
Can lower credit still get a lease deposit or move covered?
Often, yes. A salon owner with a score from 500 can apply for a lease deposit or move, and as credit improves the offers generally get better.
Lease decision coming?
Apply and plan.
Updated October 6, 2026