How do we write a clubhouse rental policy for our HOA?

By OurHOA · General information · Revised September 24, 2026

How an HOA board writes a clubhouse rental policy: who can book, cost-based fees, deposits, alcohol and event insurance, capacity, check-out and damage claims.

Part of the HOA board handbook: running the board.

What the policy has to settle

A clubhouse rental policy answers six questions before anyone asks them. Who can book the room. What it costs and what the deposit covers. What the renter has to carry for insurance, and whether alcohol is allowed. How many people can attend and until what hour. What the room has to look like at check-out. And how the association collects when something gets broken. Most boards write the policy the week after a bad party, which is why so many of them read like a list of grudges. Write it before that, keep it to two pages plus a signed rental agreement, and adopt it the way your documents and state law require. Rules vary by state and by each community's declaration and bylaws, so treat this as a working outline, not legal advice, and have the association's attorney read the final draft once.

Confirm your authority and adoption steps

Start with the declaration and bylaws. Most give the board power to adopt reasonable rules for common area use, and Florida says so in statute: section 720.304(1) makes common areas and recreational facilities available to owners and their invited guests for their intended use, and lets the association adopt reasonable rules for that use. How you adopt the policy matters as much as what it says. In Texas, a properly adopted rule is a dedicatory instrument under Property Code section 202.001(1), and section 202.006 says a dedicatory instrument has no effect until it is filed in the real property records of the county. A rental policy that lives only in the minutes may not be enforceable in Texas, so record it. Colorado section 38-33.3-209.5(1)(b) requires every association to have written procedures for adopting and amending policies and rules, so follow your own procedure step by step. California is stricter still: a rule on use of the common area needs at least 28 days' notice to members before the board adopts it under Civil Code section 4360, and owners of 5 percent of the separate interests can force a vote to reverse it under section 4365.

Who can book, and when

Limit bookings to owners, and to tenants when the owner authorizes it in writing and your documents give tenants amenity rights. Require the person who signs the agreement to be at least 21 and present for the whole event. That one rule prevents the classic problem of an owner booking the room for a teenager's party and leaving. Set a booking window, for example no more than 90 days ahead and no less than 7, and a cap such as one weekend booking per household per quarter so a few families cannot hold every Saturday. Block out dates the association needs first: the annual meeting, board meetings if they are held there, holiday events and pool opening weekend. Ban commercial use outright, meaning no ticket sales, cover charges, paid classes or product parties. Decide what happens to owners who are behind on dues. Florida section 720.305(3) lets an association suspend common area use for an owner more than 90 days delinquent without the notice and hearing that other suspensions need. In Texas, section 209.006 requires written notice by certified mail before the association suspends an owner's right to use a common area, so a rule that simply refuses bookings from delinquent accounts should follow that notice process.

Set a fee and a deposit you can defend

Keep the rental fee and the damage deposit separate, in writing and in the ledger. The fee pays for what a private event actually costs the association: a cleaning visit, extra utilities, supplies and wear. Build it from invoices. If the cleaning service charges $85 per visit and the treasurer estimates $20 in utilities and supplies, a fee around $100 to $110 is easy to explain at an annual meeting. A fee far above cost invites complaints, and in California Civil Code section 5600(b) bars a fee that exceeds the amount needed to cover the cost it is charged for. The deposit is the renter's money held against damage, so size it to a realistic repair, often a few hundred dollars, and return it by a date the policy states, such as 14 days after the event, with an itemized list of anything kept. One tax point for the treasurer: the IRS instructions for Form 1120-H treat member payments for special use of association facilities, apart from use generally available to all members, as nonexempt function income. Tell the CPA what the clubhouse brought in so it lands on the right line. Our guide on whether an HOA has to file a tax return covers the 1120-H choice.

Alcohol, insurance and capacity

Decide on alcohol first, because it drives the insurance answer. Many associations allow beer and wine at private events with conditions: the renter provides it, nobody sells it, there is no cash bar, no tip jar tied to drinks and no admission charge, and nobody under 21 is served. Selling alcohol is a licensing question under state liquor law, and a policy that forbids sales keeps the association out of it. For any event with alcohol, or above a set guest count such as 40, require the renter to buy a one-day special event liability policy that includes host liquor coverage and names the association as an additional insured, and to deliver the certificate at least 7 days before the event. Ask your own agent two questions before the policy takes effect: whether the association's liability policy covers private rentals of the clubhouse, and what limits it wants renters to carry. For capacity, use the occupant load posted in the room. If no number is posted, ask the local fire marshal and write that number into the policy rather than guessing. Our guide on who is liable if someone is hurt at an HOA community event explains the alcohol and vendor exposure in more detail.

Clauses you can copy

Adapt these to your documents. Eligibility: 'The clubhouse may be reserved by an owner in good standing, or by a tenant with the owner's written authorization. The person signing the rental agreement must be at least 21 years old and present for the entire event.' Fees: 'The rental fee is $105 per event and is not refundable. A separate $300 damage deposit is due at booking. The association will return the deposit within 14 days after the event, less the documented cost of cleaning or repairs, with an itemized statement.' Hours and capacity: 'Events end by 10:00 p.m. Sunday through Thursday and 11:00 p.m. Friday and Saturday. The room must be empty and locked 60 minutes after the end time. Attendance may not exceed the posted occupant load.' Alcohol: 'Alcohol may be served only by the renter, at no charge, to guests 21 and older. Sales, cash bars and admission charges are prohibited. Events with alcohol require a special event liability policy naming the association as an additional insured.' Board motion: 'Motion to adopt the Clubhouse Rental Policy and Rental Agreement dated [date], effective [date], and to record the policy in the county real property records.' Drop the recording clause outside Texas if your attorney says it is not needed.

Check-in, check-out and damage claims

Most deposit fights come from a missing before-and-after record. Give the renter a one-page checklist at booking: tables wiped and returned to the wall, chairs stacked, floors swept, trash bagged and taken to the dumpster, kitchen appliances empty and off, thermostat reset, lights off, doors locked. Take dated photos at check-in and inspect by noon the next day. Issue a temporary fob or door code that expires at the event's end time instead of handing out a physical key. If something is damaged, send the renter the photos and the repair invoice, and deduct only that documented cost from the deposit. Keep deposit deductions separate from fines. A fine for a rule violation goes through the association's enforcement process, and several states regulate that process closely. Colorado section 38-33.3-209.5 requires a certified-mail notice and a 30-day cure period before most fines, and caps the total at $500 for a violation that does not threaten health or safety. If the damage exceeds the deposit and the association bills the owner for the rest, Texas section 209.006 requires written notice by certified mail before it charges an owner for property damage. Our guide on whether an HOA has to refund a damage or amenity deposit shows how these disputes look from the owner's side.

Mistakes boards make with rentals

Waiving the fee for directors, their friends or the social committee's favorite family is the fastest way to lose owners' trust, and it undercuts the association the first time it has to enforce the policy against someone else. Charge everyone the same, and put any waiver to a vote in an open meeting. Other mistakes come up again and again. Holding deposits for months because nobody owns the inspection. Taking cash or personal checks made out to a volunteer instead of the association. Letting one director hold the only key, so bookings stop when that person travels. Never telling the insurance agent that the room is rented to the public or to large groups. Adopting the policy by email and never recording or distributing it. Review the policy once a year with the booking log in front of you: how many rentals, what the cleaning actually cost, how many deposits were kept and why. Raise or lower the fee from those numbers, not from the last complaint.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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