Here's How to Start a Venue Rental Business

Know what your expenses will look like ahead of time

There are a number of expenses you’ll face right off the bat as you start your venue rental business. Don’t let these scare you off, however! Knowing about them now so you can plan ahead and deal with them as they become a reality is essential.

Expenses will vary depending on what type of venue you’re creating, but you’re going to have fixed monthly expenses.

These include:

• Any payments you’re making on the building itself
• Taxes and insurance
• Utilities
• Maintenance costs
• Advertising
• Staff payroll

Depending on the nature of your specific business, you may choose to rely more on word of mouth than spending a lot on advertising. You may have more or less maintenance (is it an old building?), and you may get away with not having much of a staff.

Opt to save yourself time and money by listing your venue on the Peerspace platform! (But we’ll talk about that in more depth a little later).

Regardless of the details, there’s going to be a monetary number you need to hit each month to break even, and you need to know that number as early in the process as possible. That will give you an indication of what you need to charge. And if that price is too high to compete with similar businesses in the area, you have to figure out either where you can cut costs or how you can gain an edge over the competition.

This kind of thinking isn’t particular to how to start a rental venue business: it’s generating a basic business model, and though it’s not the “fun” part of building a business for most people, it’s absolutely critical.

Here are 8 ways to earn money from your space without lifting a finger!

Don’t forget one-time expenses

If you’re just getting your venue set up, there will likely be a lot of little changes and renovations you’ll need to undertake. You may also need to make capital investments in other one-time expenses, like installing security systems, putting in lighting fixtures, furniture, etc.

The list can go on forever, and a common beginner mistake is spending too much too fast. For example, it would be awesome to have top-tier audio/visual equipment, but is it really a requirement, right out of the gate? It’s best to save extra features like that after you’re in business and making a profit.

Another example: for catered events, you might like to provide high-quality silverware and plates. But in the beginning, these are expenses you can do without. Let the caterers handle it. Again, after you’ve got steady income rolling in from regular bookings, you can take a look at your finances and make some strategic purposes to upgrade your offerings.

Also, check out our event budget template to save time and money!

Know your responsibilities

Part of knowing how to start a rental venue business is knowing how to stay legal. The chances are good that you’ll need several local permits and licenses.

If you’re going to sell alcohol on the premises, you’ll need a liquor license. And you’ll need a fire inspector to come and confirm that exits are properly marked, and everything’s up to code. Know your local laws when it comes to COVID-19 compliance, if applicable.

There will likely be restrictions on the maximum legal capacity, and you may have to close at a certain time. You may also have to keep the noise down after a certain hour.

Plus, you’ll need the right types of insurance for your business. It will vary, but this might include General Liability Insurance, Umbrella Insurance, or Liquor Liability Insurance, among others.

Dig into your city’s regulations for venues of your type, and make sure all of your ducks are in a row before you open your doors.

This is how to rent your space out for filming!

Make it beautiful!

Once you’ve got all of the legal and financial nuts and bolts squared away, you get to move on to the fun stuff: actually designing and preparing your venue.

This can be a construction-heavy process with expensive contractors and lots of demolition, or it can be as simple as adding fresh new paint and changing up the interior décor. Either way, have a plan.

Have a vision, and you can follow through every step of the way. Peerspace can actually help you out with some inspiration. Start by checking out our listings by browsing by event types and looking at venues similar to yours.

Here are just a few listings for you to peruse:

As you can see, Peerspace can introduce you to thousands of beautiful photos of some stunning spaces, which should give you plenty of ideas. Make your venue the kind of place that people can’t wait to plaster all over Instagram and Pinterest, and it will pretty much book itself.

If you’ve got a space made for gatherings, then read how to rent out your home for a party!