Whether your club rents gym space for practices or leases an entire facility, a rental agreement establishes the responsibilities of both parties. Taking time to review the agreement before signing can help prevent misunderstandings, protect your club, and minimize legal and financial risk.

While every agreement is different, here are nine important items Club Directors should review before signing.

1. Confirm the Agreement Term

The agreement should clearly state:

  • The start and end dates of the lease.
  • Renewal options, if applicable.
  • Procedures for extending or terminating the agreement.

Understanding the length of the agreement helps your club plan for future facility needs.

2. Review Rent, Deposits, and Payment Terms

Make sure the agreement outlines:

  • Rental rates.
  • Required deposits.
  • Payment due dates.
  • Accepted payment methods.
  • Any late fees or penalties.

Knowing the complete financial commitment helps avoid unexpected expenses during the season.

3. Understand Indemnification Responsibilities

The agreement should clearly identify each party’s responsibilities if injuries, property damage, or other claims arise.

Review the indemnification language carefully to understand how liability is allocated between the facility owner and your club.

4. Document Damage Reporting Procedures

Clarify how damage to the facility or equipment should be reported.

The agreement should explain:

  • Who is responsible for reporting damage.
  • How damage should be documented.
  • Whether repairs or replacement costs are the responsibility of the club or facility owner.

5. Define Operational Responsibilities

Rental agreements should clearly outline the responsibilities of both parties during facility use.

These often include:

  • Adult supervision requirements.
  • Compliance with facility rules.
  • Compliance with applicable local and state laws.
  • Expectations for maintaining the rented space.

Clearly defined responsibilities help avoid confusion during the season.

6. Review Default and Termination Provisions

Understand what happens if either party fails to meet the terms of the agreement.

The contract should specify:

  • Circumstances that may result in termination.
  • Required notice periods.
  • Any opportunities to correct a violation before termination.

7. Verify Insurance Requirements

Many facilities require clubs to provide proof of liability insurance before occupying the space.

Review the required coverage limits and confirm that your club’s policy satisfies the agreement.

Likewise, request confirmation that the facility owner maintains appropriate liability insurance.

8. Confirm Additional Insured Requirements

Many facility owners require the club to list them as an Additional Insured on the club’s liability policy.

This designation provides certain insurance protections to the facility owner during your use of the facility. Make sure you understand these requirements and work with your insurance provider to obtain the appropriate documentation before your rental period begins.

9. Review Force Majeure Provisions

Unexpected events such as severe weather, power outages, natural disasters, or civil emergencies can affect facility availability.

A rental agreement should explain how these situations will be handled, including whether rental fees will be refunded, rescheduled, or credited if the facility cannot be used.

Before You Sign

Every facility rental agreement is unique, and laws vary by state.

Before signing, consider having the agreement reviewed by your attorney to ensure it complies with applicable laws and adequately protects your club’s interests. Facility owners should also confirm that the individual signing the agreement has the legal authority to bind the organization to the contract.

A thorough review before signing can help both parties establish clear expectations and build a successful partnership throughout the season.

This article is intended for educational purposes only and should not be considered legal advice. Clubs should consult qualified legal counsel regarding specific contractual questions or state-specific legal requirements.

View more education for Volleyball Club Directors.

Revised 8.6.26