Example of a Rental Fee Agreement

Agreements govern facilities rental.

Rental fee agreements are used when a company or other organization wants to rent a room or other facility for a specific purpose such as a business meeting. The rental fee agreement is a signed legal contract between the company or organization and the owner or management of the property. A standard rental fee agreement includes the address of the facility, the rental fee and information about the rental policies.

Basic Information

A rental fee agreement should include basic information about the area of the facility to be rented. For example, an agreement normally includes a description of the specific area to be rented such as a meeting room or community room or the entire facility, as well as the size of that space.

Client and Event

A rental fee agreement specifies the name of the company or organization that wants to rent the facility and includes a telephone number for the contact person. The agreement also should include the date and time (starting and ending) of the event, the type of event that will be held (e.g., a meeting or reception) and the approximate number of guests.

Rental Fee

Not only is the rental fee part of the rental fee agreement, but there may be other fees involved that the organization will have to pay to use the facility, including a security deposit, a room/facility setup fee, a cleaning fee and a security fee. The agreement should state the conditions on which any deposits are forfeited or refundable. Payment terms should be included as well.

Setup and Equipment

A rental fee agreement should spell out the organization's needs and expectations for the setup of the facility (e.g., tables and chairs) and any equipment (e.g., overhead projector and microphone) that is needed. Major mishaps are often the result of mistakes or misunderstandings in this section of an agreement. For example, a rental fee agreement for a conference facility to be used overnight should specify whether sheets and towels will be provided or whether attendees will have to pack their own for the event. Other items such as coffee service or a catered meal should be detailed as well.

Rental Policies

Any rental fee agreement is likely to have at least a page or two of policies and rules for the use of the facility. These rules might include whether alcohol can be served during the event, whether smoking is permitted on the premises and whether decorations may be attached to the walls. Other policies regarding cancellations, subcontractors, liability and other legal matters also may be detailed in the rental policies section of the agreement.

References

• Skills USA: Sample Rental Fee Agreement