To continue with our salon or lease out

[Reggie Rearden]

So we are in a little situation. We have a salon in the Aiken / North Augusta SC area and charge booth rent. The rent total from all (5) stations is $420/week when rented at full capacity. The issue is its been almost a year since we've been full. We charge well below market rent, have granite tops, commercial wood floors, locking cabinets, etc. We really are not understanding why we are having such an issue. The other side to the story is that we own the building our salon is in. Its a commercial building with (5) units and every unit is occupied. We're trying to determine if we should continue to try to get booth renters or just lease it to another business. We charge our salon $700/month in rent. As of today we're down to (2) booth renters totaling $150/week, which does not cover expenses. We don't want to be too hasty with the decision, especially given the current world event. Should we wait it out since we own the building and can financially make it work or cut the cord and rent it out?! The downside is that my wife is one of the booth renters! Technically, we can charge our salon less in rent so we can make it work out. We charge ourselves market value on each businesses. 

[Reggie Rearden]

I agree... the salon business may not be me. I work a regular w2 job and can not have phone access for 12hrs a day. We’ve had a lot of girls want to work there on commissions but given the nature of my w2 job, that is not feasible. As far as taxes, our other business is a tax and bookkeeping business, so that’s definitely taken care of. This is why I love having small businesses, commercial rentals, and residential rentals! Having a tax business makes everything work out perfectly every year, especially with us being so diversified. I haven’t thought about a business broker, so I’ll definitely check on that. Thanks for the advice.