Clubhouse fees

We have a clubhouse with a pool. Right now our reservation deposit is $75 but we want to raise it. What are some of your rental fees/deposits? Do you have any policies in place? Clubhouse rules? How do you enforce any of the policies?

Hi Rebecca:

We have a private park in our HOA. While we do not have a set deposit or fee for reservations, we include in our policy and on our rental form, that fees and deposits will be charged. We try to estimate, depending on the event, the type of damage that may occur and the cost that would be involved, and set fees accordingly. The policy and reservation form were drafted after we had one request for usage of the park on a reserved basis.

I would recommend the following:
1) Base the deposit on the risk involved - how much damage would be likely to occur with different types of usage? A birthday party might be much different than a dance, with regard to the amount and type of damage you might experience.
2) Put in your policy that any damage that exceeds the deposit will be due & payable within a given time frame, such as a month, and if not paid, will be charged as an assessment against the Lot.
3) Require insurance, particularly if there will be any alcohol served; they will need to provide a copy of their insurance with the HOA named as a co-insured, the amounts, and that the HOA is indemnified (they or their insurance pays for your lawyer to defend the HOA). Similar to what you'd expect of a landscaper, etc.
4) If you're a capitalist, "Charge what the market will bear." Be sure that your rental rates are similar to outside facilities, in order to have the Board excercising their fiduciary duty to the membership at large.
5) Require that they follow any state liquor control laws (such as providing a bartender, etc.).

You might include that if alcohol is served and they don't sign off that they will be doing so, they forfeit the deposit.

Most policies of this nature are written on a basis of experience - you get burned, you add to the policy. It's great that you're thinking ahead of the curve on this. If you want a copy of our park policy, email me: [email protected]

J. Patrick Moore, CMCA

Hi Rebecca,

My HOA has a clubhouse that we rent out to members, usually for children's birthday parties. Our MC handles the applications and reservations. We require a $ 250 refundable security deposit and a $ 50 rental fee.

A couple of things we do:

The maximum room capacity by the the Fire Dept is 64 persons, so our contract limits the number of guests to 35, that leaves a little wiggle room in case a few more guests arrive.

The contract states that no alcohol can be served. If the host decides to serve alcohol after signing a contract agreeing not to, then they are legally responsible.

The guests can't use the pool or other facilities, just the clubhouse.

We have no large trash containers or dumpster, so the host must remove all the trash and dispose of it.

The party must end one hour before the recreation facilities close for the evening. This gives the host some time to wind the party down and cars to leave by the time the facilities are officially closed for the night.

The entire contract is about two pages long, but that gives you an idea. As we have done, you'll probably add more rules over time as you have more rentals.

One nice thing we have is a security camera in the clubhouse, as well as ones out around the pool area. When we give the tour to a member renting the room, we casually point out the camera up in the corner of the room and let them know that everything that goes on will be recorded.

The cameras provide pretty undisputable proof if there's a keg of beer in there, the party lasts three hours past closing or 20 little kids show up with towels and bathing suits for a "pool party".

Our reservation is that you get two free rentals for the year. After that its $25 a rental. The/A clubhouse is already paid for by the people so why charge them high fees to use it? The cleaning deposit it $250.

The irony of living in a HOA is that the members/owners are to "police" themselves. The rules and regulations of the HOA are created by the owners/members and to be enforced by them as well. The whole point of a HOA in most cases. (Besides a sales tool by developers).
Your choice if you don't want to "police" the clubhouse, is to get a board member or if you have a clubhouse committee, they do it.
It may not be in your nature to tell people what to do. That is alright. There are others in HOA's that freely have no issues in doing so. This isn't a situation where you can go to the police or to city council. These are the HOA rules and are for the exclusive enforcement of the HOA.