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.
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- 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:
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