An Overview of Venue Rental Agreement Contracts

What Exactly is a Venue Rental Agreement?

A venue rental agreement (contract) is a legal document between a facility renting the venue space and the person renting the space saying that in exchange for money, the space can be used for a specific purpose. Venue rental agreements have different terms than other agreements because the person renting the venue space usually has no control of the land. So instead of being responsible for upkeep of the place , they might be responsible for the cost of cleanup after the event. It is important to not only list the rules of things like noise and cleanup, but to also specify what will happen if it is not completed.

Elements of a Venue Rental Agreement

Irrespective of whether a venue is being rented for a day, weekend or longer, the contract to rent that venue should contain the following critical components: Name and address of all parties. The contract should contain rental parties’ names and addresses as well as the venue’s name and address. Rental dates and check-in/check-out terms. It appears obvious but does not bear repeating – the parties should document the rental dates. If the rental is for more than one day, the contract should also address check-in and check-out arrangements. This is especially critical if the rental party is using the venue outside of normal business hours. If access to the venue is restricted to normal business hours, that should also be noted in the contract. Rental payments. While the parties can agree to any payment terms they wish, it is best to have the contract provide a detailed description of rental fees, deposit requirements, payment dates, late fees and additional charges. The contract should also state when the security deposit will be returned, provided that all requirements of the rental agreement have been met. Obviously the terms of the rental agreement are left to the negotiating parties, but they should cover issues such as overtime payments and cancellation terms. It is important that the rental agreement address whether any payments are required regardless of whether the event proceeds, for example. If the rental party cancels the contract, how much of a refund will be given, if any. Note: As with any contract, a rental agreement should be drafted so that it protects both parties. A venue owner/developer should parsimoniously address refunds to reduce refund exposure. Quiet enjoyment. The contract should provide that the rental party shall have quiet possession of the venue and should detail any limitations on the rental party’s use of the space. The venue owner/developer’s obligations to maintain the premises should also be set forth in the contract.

Considerations for Venue Rental Agreements

When putting together a venue rental contract, it’s advisable to work off of a template that’s been vetted by an attorney. There are many considerations and provisions that need to be considered when generating a legally compliant and enforceable agreement. Although there are many reputable online templates available, these agreements are not typically generated by attorneys and could leave you open to liability. Remember that the rental property is your client’s whole business under a rental agreement, and the last thing you want is for them to be sued in the future for something that you could have helped them avoid.
For example, depending on how the venue is set up, occupancy permits may be needed due to local laws. In addition to meeting the requirements of the Americans with Disabilities Act (which we will discuss below), an occupancy permit helps ensures that a facility is safe for public use. Generally speaking, occupancy permits require properties to meet certain standards for items such as fire safety, security, sanitation and risk management. Holders of occupancy permits must also have liability insurance.
There are also legal concerns related to liability that you need to be aware of. for example, an events center needs to ensure their clients’ invitees, employees and subsidiaries are protected in the event of damage, theft or loss. While you can’t predict what will happen at an event, you can take steps to limit your liability by adding indemnification provisions to your rental agreement.
If you are considering renting out a space for a function, you should also consider requiring a certificate of insurance that names your business and your clients’ interests as insured parties. This is different from an indemnity clause in that it not only includes the host’s insurance company, but also precludes the host from seeking reimbursement from the center or damages for the actions of guests, employees or contractors.

How to Negotiate a Venue Rental Agreement

In order to ensure that all aspects of your event are covered, you will want to negotiate all of the terms covered in the sample contract and be willing to walk away without a deal if the venue is unwilling to make changes in line with your needs. Most venue owners will be willing to negotiate, especially with respect to the cost of renting your venue. However, be clear about how much you are willing to spend on the use of the space. Take into account all of the costs associated with your event (including décor, equipment rentals, and food service) when figuring out your budget for your venue rental fees, as many venues offer additional services and equipment rentals as part of their packages.
Another element of your venue rental negotiation should be flexibility around scheduling. Be clear about your timeline for every aspect of your wedding, from when you wish to schedule the rehearsal dinner to when the guests will arrive on the day of your wedding. If you need access to the space several hours before your rehearsal dinner or the time of the ceremony, be clear about this and ensure that the venue is on board with your needs before signing an agreement. If the venue is unwilling to be flexible, you may end up with a series of fee-laden surprises leading up to your big day.

Pitfalls to Avoid in Venue Rental Agreements

Common mistakes to avoid in venue rental agreements
The first mistake is assuming that you do not need a written contract. If you are renting an apartment or a house for more than a month, or renting space for an event or a party, you need a written rental contract. If the terms are not in writing then it is impossible to prove the deal you got or the deal you made. Even a misunderstanding over 30 days of rent or a $50 deposit can result in a dispute that turns into an expensive lawyer fight.
Once you have confirmed that a written contract is required, read the contract carefully. Read the whole agreement, including the fine print. Ask for clarification on anything that doesn’t make sense. When billing is done electronically, keep a record of any outstanding charges that appear and disappear from the account. Even if the charges are automatic, never assume that payments are being posted correctly by the owner or property manager. Check the wording on the contract to verify the frequency and timing of payments.
If you are renting space for one day only, it is important to get very clear on the terms of your deposit and any contingencies for its return. Many owners will offer a full return of the security deposit if they receive written notice of cancellation within a s time period (typically 60-120 days) or will issue a partial refund. When no refund of the deposit is offered , cancellations are often difficult to predict because of the unforeseen nature of most cancellations, such as a death in the family. For this reason, if you are not confident that the business or event will move forward, do not provide a deposit until you are clear that the deal is certain.
Get a copy of the contract as soon as it is signed. Many landlords or property managers will allow for an "exchange" or swap of calendars, so it is not unusual for a contract not to be dated, or for the file copy to be delayed in being issued. Get a scanned copy for your own records, and identify the person who will issue a final copy.
If you are renting a home, take photos of the home before moving in. Send the photos or copies to the owner immediately after moving in, including photos of any existing damage such as dents, stains, scratches and marks. After taking the photographs, you should return to the home to do a thorough inspection inside the cupboards, cabinets and appliances. At the end of your tenancy, you can compare to the initial photos and hand over the apartment without argument.

A Sample Venue Rental Agreement

It can seem difficult for someone who is entering into a venue rental agreement for the first time to determine whether the contract they are being provided with is in their best interests or not. The truth is that while venue rental agreements can have any language that the parties wish, most contract terms relating to venue rentals are fairly standardized. This means that if you search for venue rental agreement templates online, you will likely be able to find a reasonable venue rental agreement from a reputable source that you can use. You may also be able to find a valid sample venue rental agreement that is specific to your particular use of the venue – such as one that will apply to a wedding reception or perhaps to a corporate meeting. Additionally, it is important to bear in mind that regardless of how unique the venue rental agreement may be, that almost all venue rental agreements will require a deposit in order to secure your use of the venue on the particular date you plan to use it.

Frequently Asked Questions About Venue Rental Agreements

As with any written contract, your venue rental agreement should be carefully examined and addressed in the event of a dispute or required clarification. Some of the most frequently asked questions regarding venue rental contracts follow below.
Q: Can I modify the contract?
A: In the event a rental relationship becomes embellished with unexpected or ambiguous terms, a landlord might agree to add them to the original contract. Unfortunately, in many instances, verbal agreements are not often supported legally. For this reason, a written agreement is strongly encouraged .
Q: How are disputes handled?
A: Despite all of the good faith and care taken by landlords to keep their clients, disputes sometimes arise regarding payment or property damage. In most cases, the contract will dictate how disputes are handled. It is often easier and less expensive to attempt to rectify the problem without litigation. The involvement of legal counsel will likely be required, however.
Q: What is the renewal cost?
A: Depending on the property and its terms, it is almost always less expensive to sign extensions of the contract than it is to start an agreement from the beginning. Some landlords offer incentives to clients who extend their term of service, and it is recommended that you ask if one is being offered.