From ensuring sterile and clean facilities to signing a commercial lease, setting up a new tattoo studio or parlour involves a number of important considerations for a business owner. By understanding the legal considerations associated with entering into a commercial lease, you can avoid unfavourable rent conditions or landlord conditions. You should ensure that you are aware of some basic legal considerations such as the term of the lease and any provisions for the review of rent.
Reviewing Rent for a Tattoo Studio
Almost all commercial leases will have provisions concerning the periodic review of rent within the term of a commercial lease. Firstly, you should be aware that the review of rent occurs can happen every 2, 2 ½ or three years, depending on the preference of the owner of the commercial property. Although, you should be aware that rent review cannot occur on an annual basis unless there is an objective review mechanism used such as the Consumer Price Index. Depending on the length of your commercial lease, it is possible that the price of rent may only be reviewed once or twice.
The new price of rent can be based on any factor that you and the owner of the commercial property deem appropriate. Consequently, you could have the rent be dependent upon profit margins, average rent price in the area or even simply agree to keep in inline with the Consumer Price Index. It is important however that you choose the most predictable and fair mechanism possible so that rent review is something that you can plan for, rather than fear.
Commercial Leases for Tattoo Parlours
Many tattoo studio owners find themselves caught out when agreeing to the term of a commercial lease, due to being unaware of some of the legal technicalities associated with it. As a result, when entering into a commercial lease on behalf of your tattoo artist business, you should be aware of the commencement and termination date of the lease. If the lease is to last five years after keys are exchanged. You will need to clarify what date you should vacate the property by.
You should also invest in facilities and equipment that complies with government and state regulations. A sterile operating environment is strongly advised. As a business owner, you may be liable for criminal damages in the event medical complications arise due to negligence. In New South Wales and Queensland, tattooists must undergo finger and palm printing and police checks as part of the licensing process to become a tattoo artist.
If you are looking to start your own tattoo artist business or expand your already existing tattoo artist business, you will need to have an understanding of the legal considerations associated with entering into a commercial lease. You should also consider equipment leasing requirements, such as tattoo machines, chairs, sterile cleaning equipment and fit-out. Our commercial leasing lawyers can assist with reviewing or drafting your lease, or negotiate its terms with a lessor or landlord. We can also help you with any employment matters such as bringing onboard tattooists as contractors or casual staff.