Updated May 17, 2023
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A facility space rental agreement is between an owner and tenant for space that is used for a special event or venue. The agreement is commonly for one (1) day and, depending on the space, may include catering and other extra services. The tenant will be required to make a non-refundable deposit in case of cancellation.
What to Include
This document serves as a contract between two parties – the owner and renter – for the short-term rental of event space. It should include:
- The names of the venue owner and the renter
- The address of the venue
- The start time and date and end time and date of the rental
- The rental deposit amount, and when it is due
- Provisions for a security deposit, if relevant
- When final payment is due
- Consequences for late payment
- Any other terms or expectations
Event rentals can actually be more complicated than longer-term leases. These one-shot deals are often riddled with particulars, and so the two parties should take care to complete this form and make sure to flesh out all relevant details on paper.
Who Can Use This Document
This is a versatile document that can be used for all kinds of short-term rentals. Though most events occur in designated event spaces, like wedding halls or other related venues, this form could also be used for the rental of a shop or retail space, or even a residential unit. The key is that the rental will be time-limited (generally only a day or less), and for the express purpose of hosting an event, party, or other gatherings.
How to Rent a Facility for an Event
1. Determine the Rental Period
The first step is to ensure that the venue is available. The rental period is specified in the agreement with the start and end periods. Remember that this rental period will necessarily begin before and end after the event. Make sure to factor in set-up and clean-up time in addition to the event period.
2. Negotiate Costs
During peak season, prices can be fixed and high. Off-season, there may be more room for negotiation. The owner and renter should settle on a rental rate, and also on terms of payment. Most rental contracts require an upfront deposit – which is credited toward the eventual balance and possibly also toward a security deposit. Determine when the final payment is due, and agree on penalties for lateness.
3. Hold Event
This should be the best part. With an agreement in hand, you are now ready to hold the event. Just be careful to follow agreement specifications and remember that the renter is responsible for the behavior of guests while they are on the premises.
4. Settle Final Payment
Once the event has concluded, the owner will make a final determination of the balance that is due. As long as there are no damages or other contractual complications, this final balance will simply be the total rental cost less any deposit made at the outset.
