Facility owners often rent out their sports centers to volleyball clubs as a source of income or as a way to be engaged in community events. Likewise, many sports clubs who don’t own their own facility, often need to lease facilities in order to conduct practices as well as other activities related to their club.

Before signing a rental agreement, make sure that the following areas are addressed:

  1. Specify the Term of the agreement, clearly stating when it will begin and when it will expire.
  2. Clarify the amount of Rent and any deposits that are required, as well as a payment schedule.
  3. Lessee agrees to Indemnify the facility owners and employees against damages or injury caused by acts or omissions by the Lessor. Likewise, owner of the facility agrees to Indemnify the organization renting against any damages caused by errors or omissions on the part of the Lessee.
  4. Stipulate the procedure for reporting of damages to the facility or equipment.
  5. The group renting the facility assumes full responsibility for the actions and omissions of its employees when using the rented space. They should also agree to adequately supervise all activities conducted while renting the space as well as comply with all applicable state and local laws as well as Lessor’s rules and regulations.
  6. Specify that failure to make payment or comply with any conditions contained in rental agreement will give the Lessor the right to declare forfeiture of agreement by giving Lessee written notice of termination.
  7. Lessee agrees to furnish Lessor with a certificate of public liability insurance coverage with limits of at least $1,000,000.00 for injury, including death to one person, and from any accident for the protection of itself. Likewise, the Lessor also agrees to provide proof that it carries public liability insurance coverage with the same or higher limits of liability.
  8. Lessors should require that they be included as an Additional Insured (person that receives the benefits of being insured under a policy, in addition to whoever originally purchased it) on the rental group’s liability policy to protect themselves from any injury or damages resulting from the Lessee’s use of the facility.
  9. In the case of unforeseeable events, such as severe weather, utilities interruption, civil disturbance, or any other event that prohibits the Lessor from fulfilling the obligations of the Rental Agreement, the Lessor is not liable for any claims related to loss of use or income of the facility.

Facility and club owners should each have their attorney review to ensure that agreements comply with state and local regulations and that they are fair to both parties. The owner of the facility also needs to ensure that the signor of the rental agreement is an authorized representative with the authority to bind the tenant to the terms of the agreement. Finally, both parties need to use caution when entering into rental agreements to ensure that they are aware of what they are going to be held responsible for in the event injuries or damages occur.

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About the Author 

Mary Beth Mathis is an Independent Agent with Pike Insurance Agency, LLC in Louisville, Kentucky. If you would like assistance with insuring your facility and your club, you can reach Mary Beth at 502.473.5454 or marybeth@louisvilleins.com.