AMANDA FLORY
"I WAS CONSCIOUS THAT I DIDN’T WANT TO DESTROY MY RELATIONSHIP WITH MY LANDLORD AND I HAD TO KEEP IT PROFESSIONAL AND THINK ABOUT OUR LONG-TERM RELATIONSHIP.”
I’ve had my salon for 11 years but went through the biggest challenge I’ve had as a business owner just over two years ago. I’d just got back from Jury service and noticed a big gap between the skirting board and the floor. Through further investigation we found that the floor had dropped, because it had rotted underneath.
The terms of my lease state that I’m responsible for anything from the floor up, and my landlord is responsible for anything exterior. We got various quotes for the work, and it was mounting up. We’ve always had a professional, amicable relationship, but at this point my landlord said that the sole responsibility, and cost, would sit with me.
I did some further investigations, and found that an outside pipe had been leaking into the wall. We had three independent surveys done and they all found that the exterior issue had caused the interior issue. At this stage, I quietly got in touch with a retired solicitor through a client. I think as hairdressers we often forget that our clients have a wealth of contacts. Just think how often they lean on us, sharing their struggles?
My landlord and I ended up debating for 18 months about who was responsible for the cost of the works, but meanwhile the problem had to be fixed. This meant a six-week salon closure where everything had to be ripped out – the plaster had to be taken off the walls and everything inside the property had to be thrown out because of the rot. It was a really stressful time – my main worry was staff pay roll as there was no cashflow coming in, but we also had to pay brands, creditors, bounce back loans...
All this alongside the ongoing debate. I was conscious that I didn’t want to destroy my long-term relationship with my landlord. So I went to my insurer, and amazingly they agreed to cover part of the claim. No insurer will cover dry rot, wet rot or woodworm, but it’s normally caused by something else which can be claimed for. Make sure you know your excess; negotiate this when you renew every year. If you’re reading this and don’t know the details of your insurance – check! If you can’t open, how do your staff get paid? Always make sure your contents list is updated, don’t be underinsured. Maybe you’ve got iPads for consultations? Insure them!
In the end, it was a negotiation, rather than a battle. £150k was the full claim, but because my insurer agreed to pay some of the costs, it meant my landlord didn’t have to claim as much through his insurance. I then negotiated for him to pay my excess, my premium, and my management fees for the next five years. He even offered to pay salaries when cash flow was an issue.
In a situation like this, both sides have a lot to lose – he could end up with an empty unit and my business was at stake. My advice is put everything in writing, don’t just have verbal conversations. Also I never said, ‘I have a solicitor’, as I didn’t want to get into a legal fight. But I did make sure that everything in email would stand up in court.
Working to maintain the peace has turned out well for us, as the landlord plans to sell a building behind the current salon, and we’re in negotiations to buy it and set up a Trichology centre. We're also looking to buy the space we currently rent. I’ve learnt how my landlord works. I got three valuations (through clients!) and I’m excited about the future. Landlords might think we’re ‘just’ hairdressers, but we’re business owners, and we’ll defend our business like it’s our child!