Here’s How to Start a Venue Rental Business (2024)
- Date: June 14, 2024
- Topic: Events
- Contributors: Written by Peerspace Staff

Source: Peerspace
A venue rental business, like all businesses, requires grit and determination. It’s not enough to simply own a building — you’ll have to keep up with accounting and permits, do your own marketing, and stay on top of customer service. In other words, even though it’s a fun (and rewarding) endeavor, it’s still a business.
Luckily, it’s also one that’s booming! According to Oxford Economics, the event planning industry has generated $325 billion in direct spending and $845 billion in business sales. Of course, a lot of that money is going to venues. The US Bureau of Labor and Statistics expects this trend to continue, estimating an impressive 8% industry growth between now and 2032.
Like all industries, there’s a lot to learn. Nobody’s born knowing how to start a venue rental business, but we’re here to help. As the largest online marketplace for hourly venue rentals, this is exactly what we at Peerspace do every day — help venue rental businesses put their spaces in front of countless people in need of a rental space!
Ahead, we’ll break down an overview of the phases and get you well on your way to hosting the city’s best bashes. And when you’re ready to list your rental venue, we’ll share why doing so with Peerspace is the most rewarding option.
- Early considerations in how to start a venue rental business
- How to choose a location for your venue rental business
- How to know what your expenses will look like ahead of time
- What are the top responsibilities when starting a venue rental business?
- What are examples of different types of venue rental businesses?
- Ways to get the word out about your venue rental business
- List your venue rental business on Peerspace
- Bottom line on how to start a venue rental business
Early considerations in how to start a venue rental business

First things first: Know what kind of venue you want to create. It sounds obvious, but many proprietors of mixed-use venues don’t have a realistic picture of where their monthly income will come from. This can be problematic from the start, as it can make designing, upgrading, and even marketing your venue more complex than necessary.
To hone in on the type of venue you want to create, consider what type of crowd you want to cater to and the type of events you wish to host. For instance, do you intend to cater to a corporate crowd for off-site meetings and workshops?
Do you hope to rent out a banquet hall for wedding receptions? Is your goal to create an art gallery but keep it booked for frequent performances and parties?
Knowing how you want your space to be used — not just how it will look — will inform all your future decisions. You’ll also want to conduct thorough market research to understand the demand for venue rentals in your area. Identify your target market, competitors, and the types of events people are hosting.
It’s also helpful to develop a financial plan that includes startup costs, operating expenses, pricing strategy, and revenue projections. Consider seeking advice from a financial advisor or accountant.
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How to choose a location for your venue rental business

Of course, you’ve got to find the actual building you want to turn into a venue. Likely, your creative juices are really going to get flowing as you enter different spaces, imagining what they can become. And that’s great. It’s good to get excited, dream big, and visualize everything your venue could become.
But there are concrete considerations you need to keep in mind when looking for a location, too. Here are a few to take into account:
- Is parking going to be an issue?
- Is the building in a location that’s easy to get to and from?
- If you’re hoping for tourist traffic, is it in a part of town already trafficked by visitors?
- Is the location near other popular places?
- Is the building likely to require expensive upkeep (such as if it’s particularly old or historic?)
- What’s the surrounding neighborhood like, and how might that affect business a few years down the road?
Can the area even support another venue? For example, if you were opening a small concert venue, it might behoove you to look for buildings in a different part of town than other competing venues.
Once you know what kind of venue you want to create and you know what building you’re working with, you can start getting into the nitty-gritty.
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How to 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 could 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.
Estimating your expenses ahead of time is essential for planning and budgeting for your venue rental business. Begin by researching costs in your area, including rent, utilities, insurance, and permits. Consider the size of your venue and the facilities you plan to offer, as larger venues and more amenities will incur higher expenses.
Factor in costs for acquisition if you’re purchasing a property, along with operating expenses like maintenance, cleaning, and marketing. Don’t forget to budget for staffing, equipment, supplies, and any professional fees. Setting aside a contingency fund for unexpected expenses is also wise.
By carefully estimating your expenses, you can create a realistic budget and plan for the success of your venue rental business.
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Keep the one-time expenses in mind

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!
What are the top responsibilities when starting a venue rental business?

Part of starting a rental venue business is knowing how to stay in compliance with local ordinances and laws. There’s a high likelihood that you’ll need several permits and licenses specific to your city, county, and state.
For example, 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.
There may also be restrictions on the maximum legal capacity. And you may have to close at a certain time and 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.
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What are examples of different types of venue rental businesses?

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, develop a plan.
Form 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:
- This brightly colored creative flat in London, UK, when you want to go maximal
- This multi-set production studio in Los Angeles, CA, when you want a themed space to attract creatives
- Maison du Luc in Fort Lauderdale, FL, when you want to design a lux beach house retreat
- This gothic glam house in Denver, CO, if you want to design a space with retro, moody vibes
- This chic, Scandinavian SoHo loft in Lower Manhattan, NY, when you want a modern live/workspace with a modern and minimalist style
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!
Ways to get the word out about your venue rental business

It’s time to let the world in on your little secret: You’re about to launch the best event venue business in your city! It’s time to plan and execute a marketing strategy that will introduce your business to the world. But how do you even begin? First of all, always base your marketing plan on your venue type and targeted audience to avoid wasting resources.
And you might also try digital advertising via Facebook or Google ads, which some people have had great success with. This can get your business in front of your targeted consumers, especially if you’re marketing toward specific demographics.
It’s also great to create flyers and tape them at local coffee shops and community center bulletin boards. Yes, this type of marketing is still effective! Plus, if you ever plan on having an open mic night and want local musicians and poets to see, a local coffee shop is the way to go.

Your business is dressed for success and you’re just about ready to list it on Peerspace. Why not put a few safe miles on your space and host a few small events before hosting a big launch party? It’s a great idea to throw a soft opening party or something similar, ideally inviting local journalists and influencers.
This can be specialized depending on the type of venue you’re starting, too. For example, if you envision primarily serving weddings, you might invite local wedding planners to a cocktail hour to show off the space. It’ll put your venue on their map as a place to suggest to couples, and everyone loves being wined and dined.
List your venue rental business on Peerspace

You can save yourself a lot of time, hassle, and marketing-related headaches by listing your venue on Peerspace! We’ve developed our platform for this exact purpose, allowing you to list your space and start earning money renting out your venue for events.
On Peerspace, you can find warehouses, homes, penthouses, clubs, lounges, restaurants, rooftops, mansions, treehouses, conference rooms, you name it. Renters looking for spaces to hold meetings, photoshoots, birthday parties, baby showers, video shoots, workshops, and so much more book the spaces by the hour.
As a Peerspace host, you upload stunning photos of your space, share all the pertinent details to attract renters, and list your rules and available equipment. Interested renters can contact you safely and securely through the platform. And after you start making bookings, Peerspace collects reviews from past renters. All the better to help you showcase your incredible venue!
Plus, you can get started for free.
Customers will be able to find you, make a reservation, and pay, all through the Peerspace platform. This not only protects you but will also save you a great deal of time. That, in turn, will allow you to focus on the most important job of all: being an awesome host.
Explore all of our helpful hosting resources!
Bottom line on how to start a venue rental business

We hope this guide has helped you make the most of your venue rental business. Remember that Peerspace can help you out, no matter the type of venue you have on your hands.
You can use our platform to create a listing that attracts your ideal guests. Peruse our existing listings for event venues and more to see photos and descriptions, and read reviews from past renters to see what they did and did not like about a space. With a resource like Peerspace at your side, there are no limits to what your venue rental business can achieve!
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