Drafting a rental policy for your community center: making the right choices
Why having a rental policy is important
Without a defined policy, every rental decision hinges on who happens to answer the phone. This leads to inequality between tenants, unexpected disputes over pricing, and a venue being used in ways the board would rather avoid. A good rental policy provides volunteers, managers and board members with a clear framework to guide their decisions.
Step 1: define your objective
Is rental primarily a source of income, or is the social contribution the main objective? Most community centres and village halls sit somewhere in between. Formulate a clear mission: "We provide affordable space to local organisations and additional capacity to commercial tenants." That starting point drives all subsequent choices.
Step 2: define your target groups
Who may rent? Commonly it is divided into two or three categories:
- Local associations and community organisations: the core of the mission, often with a reduced rate
- Local residents from the neighbourhood: for birthdays, meetings, parties
- Commercial tenants and businesses: market-rate or cost-recovering rates
Would you like to explicitly exclude certain activities (political meetings, activities that conflict with your articles of association)? Also document that.
Step 3: determine your pricing structure
Choose a pricing structure that suits your target groups and that tenants understand. Common options are an hourly rate, a half-day rate (morning/afternoon/evening) or a daily rate. Also take into account additional costs: cleaning, use of catering, seating arrangements, technical equipment. Read more about determining rental prices.
Also establish how you handle price indexation: do you increase annually with inflation? Communicate that in good time to long-standing tenants. See also how you communicate price changes.
Step 4: priority rules
What do you do if two parties want the same space at the same time? Document which category takes precedence: typically the local association above the commercial tenant. In the event of equal rights, whoever books first.
Step 5: what is not allowed?
Describe explicitly what the space(s) may not be used for: noisy events after a certain time, activities that pose a fire risk, subletting without permission. This is also the place to set policy on alcohol, smoking and the maximum occupancy. The concrete rules per space are further elaborated in your venue terms of use.
Step 6: evaluate annually
Rental policy is not a one-off task. Review it each year with the board: are the rates still market-conform? Does the target group description still fit the current situation? Has anything changed in legislation or regulation? Tie the evaluation to the preparation of the annual budget.