A Facility Event Space Rental Agreement/contract is a short-term contract between the owner of a space used for holding events and their tenant. Space could be indoors or outdoors.
The agreement outlines essential details about the event, such as:
- The names of space/venue owner and the event host/renter.
- The location of the venue is given through an address.
- The first and last dates as well as the start and end-time of the event.
- The amount that is expected is a rental deposit and the due date.
- The security deposit, if applicable.
- The date when the final payment is expected.
- The consequences of late payment.
- Additional terms and expectations from either party.
Note: It is recommended to get an advance deposit thirty (30) days prior to the event date.
Facility Event Space Rental Agreement- An Overview
Depending on the venue owner’s ability, it may include extra services such as catering, entertainment, etc. Tenants are usually asked to pay a non-refundable deposit to cushion the venue owner in case of cancellation. Despite its short life, an event facility rental agreement can be more complicated than other long-term leases, and so care should be taken when filling in the particulars in the agreement. Ordinarily, the agreement is valid for one day.
A facility event space rental agreement is alternatively referred to as;
- Event space rental
- Event rental agreement
- Event-facility rental agreement
Following are things to know prior to crafting a facility event space rental agreement :
Who can use it ?
An event space rental agreement can be used for diverse short-term rentals. Primarily it is used when renting spaces for events such as weddings, graduation parties, family reunions, concerts. Fundraisers, corporate events, or any other of the sort. However, this agreement can be used for renting a shop, retail space, or even a residential unit if the sole purpose is to host an event, gathering, or party. It is important to note that an event space rental agreement will secure the tenant space for a limited time, which, as earlier mentioned, will be a day or less.
Why is it important?
Having an event space rental agreement will always be beneficial to the involved parties. The agreement is a representation of each party’s expectations and contractual obligations.
As a landlord
As the venue owner, there are some benefits of having an event space rental agreement when leasing the venue to someone who intends to host an event. They include:
- Protects him or her from liability or litigation.
- The agreement is proof of the renter’s acceptance of “as-is” conditions of the venue.
- The agreement outlines the termination options available to the venue owner.
- The agreement outlines how damage to space or items within the venue is to be reimbursed.
- The agreement protects the venue owner from unprecedented cancellation by ensuring that a non-refundable deposit is paid before the due date of the event.
As an event holder
As the host of the event, the event space rental agreement comes with its benefits. They include:
- Assurance of the venue availability as the dates of the event is stated in the agreement. This way, the landlord cannot claim they did not know when the event would occur and will leave the space vacant for you to hold the event.
- The renter is protected from being overcharged or being asked to pay money that was not declared in the agreement.
Considerations while Renting
Other than outlining the details of the agreement between the owner and the renter, an event space rental agreement aims to protect the venue owner as well as facilitate the event planner towards a successful event by having several provisions, considerations, and terms included in it, some of which are enlisted below.
The most considered aspect of a venue when selecting a venue for hosting an event that a potential tenant would expect from the place he or she is renting is how the space/venue looks. However, this is not the only consideration. Other factors such as security, safety, and health requirements come into play. If a professional planner is involved, they can guide the landlord and the tenant on how to go about these requirements. However, where the event host is not seeking professional assistance in planning the event, they should as much as possible ensure the venue is safe for everyone, and a section in the agreement highlights that and serves the purpose of ensuring for the property owner as well as the tenant such protections.
Things to Protect the Venue Space
The venue is an income-generating venture to the owner, and as a result, protecting it should be a priority when renting it out. An event space rental agreement can be used to achieve this by including or considering the following components when writing and requirements before signing the facility rental agreement.
- Demanding event insurance – Even though the venue would generally be insured, the renters should be asked in the lease agreement to acquire additional insurance that covers the event and the activities that will be taking place. Insurance ensures that either party does not lose money from their pocket paying for damages and medical bills if accidents occur or attendees get injured during the event.
- Take pre-event images – Pictures can be used to show the condition of the building before and after the event. It is recommended that pictures of the venue be taken and documented so that comparisons can be drawn and any damages can be identified after the event. Pictures should be pre and post-event. This way, costs of damages are rightfully billed, and no party is unfairly accused of being responsible for the damages as pictures are used as evidence.
- Lock all restricted areas – Restricted areas within the premises should be locked to restrict access to authorized people only. These areas can include storage rooms, office spaces, roof access doors, and any other. Care should be taken when locking areas so as not to violate fire safety protocols. The facility rental agreement should list all these areas so that the renter can notify the attendees accordingly.
- If needed, involve security and medical event staff – Both parties can agree on hiring security and medical staff, especially for more significant events. This does not only protect the renter but the facility as well. As the responsibility for providing security and medical services is not by default, the party obligated to do so must be declared in the facility rental agreement. The identified party should then make necessary arrangements to ensure these services are available during the event.
- Cost for the use of equipment – Where equipment such as tables, sound systems, or any other are being offered, it should be at a cost. This way, the landlord can equip the venue with up-to-date and functional equipment. The cost for using such equipment can be billed as one or separately. Regardless of the method, the total cost must be indicated in the facility rental agreement and included in the total amount payable to the landlord.
- Scrubbing services – The agreement should outline how cleaning the venue (before and after the event) is to be handled – if renters clean the venue themselves or the venue owner wishes to use their designated cleaners. Even though it is cost-saving for event planners to clean the venue themselves, better results would be achieved by hiring professional cleaners. Adequate refuse should be provided at strategic positions within the venue. Cleaning is part of maintaining the facility.
- On-site team – The landlord should have someone on-site during the event to be their eyes and ears. The landlord can opt to do so for small events themselves, but it will often require a team for significant events. The on-site team can assist the renter with hosting a successful problem-free event and protect the venue.
- Provide a safe atmosphere – The venue should be compliant with all safety requirements. The landlord should aim to provide a safe environment to the host and their guests to avoid libel. The landlord should show the vent planner where the safety exits, medical kits, fire extinguishers, and such are located.
Other issues that should be considered when coming up with a facility rental agreement for an event include:
- Parking and fire lanes – Parking space is a requirement for most, if not all, events. Parking should be such that it does not block the fire lanes in case of an emergency. There is no adequate parking; the host can opt to have a shuttle, limo, or valet service to reduce congestion. A parking map and direction signs should be put on the day of the event to guide the attendees on where to park. The facility rental agreement must therefore indicate the amount of space available for parking for attendees. This can influence the number of driving guests that can be allowed within the premises. Providing parking can be an incentive to potential renters and can be an added feature of the facility, allowing lessors to fetch a better price for space.
- Bathrooms and handwashing facilities – Sanitation areas such as bathrooms are a requirement when hosting an event. It should be determined if they will be sufficient for the number of attendees expected. Handwashing facilities should also be provided and enough for the caterers and servers to ensure maximum hygiene is observed. If the bathrooms available are found to be fewer, portable bathrooms can be added to meet the health requirements. Venues with bathrooms and handwashing facilities are more preferred, and as a result, the event rental agreement should indicate if they are available or not.
- Security and door – Hiring security is necessary, especially with significant events. A professional security team can be tasked to direct parking, safety, enforce the law, and medical interventions. One does not need to hire a security team for small events such as a family event or wedding. Several individuals can be assigned to direct attendees and answer basic questions. The party responsible for providing security during the event should be indicated in the facility rental agreement. If the lessor is tasked with doing so, it is generally at an extra cost.
- Power and lighting – Lighting is an integral part of planning an event. This is because activities such as catering, lighting, entertainment are majorly dependent on electricity. Therefore, it is crucial to state how many functional power outlets are available within the venue. Facilities with power and lighting are more desired and can fetch a good amount as rent. The renter should ascertain the power available will be able to meet the power requirements of the event; if not, generators can be hired or bought, which will come at an extra cost of fuel. The availability of power and lighting should be indicated in the event space rental agreement. If it is not, the agreement should state who is responsible for ensuring they are available and cover their expenses.
- Medical – Having a medical team for significant events is necessary. This is a precaution for any medical emergencies that might occur. For small events, a medical team is not necessary. However, basic medical supplies such as first aid kits, aspirin, anti-acids, band-aids, etc., should be provided. The nearest medical facilities should also be identified.
- Event insurance – As a renter, one should seek to have event insurance to protect themselves even if it is not one of the landlord’s requirements. Additionally, one should obtain liquor liability coverage even if no alcohol is being served at the event. Including the insurance requirements in the facility rental agreement ensures the scope of the parties’ liability is reduced, protecting them from unprecedented scenarios during the event and the lease period.
Renting a Facility for an Event
Renting a venue is a process that should be carefully executed, as the event’s success highly depends on the venue. The first thing to ascertain is its availability. Once the venue owner confirms its availability, the following should be carried out.
Define the rental phase
The rental phase is the period within which the event is expected to take place. This period should be defined in the event facility rental agreement with the specific start and end dates and times. The rental phase will typically begin before and after the event. When setting the period, the set-up and clean-up time should be factored in.
Once the rental phase and the event date have been determined, it is time to negotiate the price. During peak season, the prices of renting a venue usually are fixed and high. There is more room for negotiation during the off-season. The owner and the renter should agree on the rental rate and the terms of payment. Commonly, an upfront deposit will be required, which is added to the total payment, which includes a security deposit. Negotiation also ensures that the due date of final payment and the penalties of lateness are determined.
With the agreement in place, the event host can proceed to hold the event. Caution should be taken to abide by the agreement specifications. It should be noted that the renter is responsible for how their attendees conduct themselves.
Resolve final payment
After the event has been completed, the landlord should account for the balance owed by the renter. They should ensure to factor in any damages or other contractual complications, if any. If none, the final balance should be the agreed rental costs less any refundable deposits paid before the event.
Here is Facility Event Space Rental Agreement Template that can be customized as per need:
A facility event rental agreement is essential to landlords and tenants of event venues. It ensures that both parties are bound by contract to fulfill their obligations. The event space rental agreement is customarily a short-term lease of a day or less. An event space rental agreement can be used to lease a shop or retail store as long as the purpose is to hold an event on the premises. The agreement outlines the rental rates, date of the event, location of the venue, security deposit, utilities, and services provided by the venue owner. When holding an event, safety and health requirements should be a consideration. How the attendees conduct themselves is ordinarily the responsibility of the renter.