December 26, 2024

15 Traps to Avoid If You Lease a Part of Your Church Facility

48 minutes

More churches are leasing parts of their facilities for both ministry and additional income. Likewise, more churches are making big mistakes in the leasing process. Jess and Thom look at 15 of those mistakes. Listening to just a few of these traps could be a game-changer for your congregation.

Agreement with a handshake (You need to know why)

Failure to include a mutual termination clause for both parties

Failure to put in writing “priority access” space

Charging too little (Yes, even Christian organizations)

Failure to check if the lessees will violate zoning or land use regulations

Jeopardizing tax-exempt status (your UBIT matters)

Poor tenant screening

Overlooking maintenance and utility costs

Failure to require the tenant to get liability insurance

Overlooking security and access control

Mission drift

Financial dependency

Failure to communicate to the congregation

Failure to have a strategic plan for your facilities

Failure to consider the neighborhood implications

Resources:

Chaney & Associates

Brown Church Development Group

The Hope Initiative

FREE Research Report: New Surprising Insights

The Everything Church Resource Directory

Church Answers Central Membership

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