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capacity and space utilization, we've had more
vacancies.
"The rental boom has been great for many facilities to
generate revenue while under restrictions, potentially
saving some from permanent closure. But what is the
future for rentals?
"While rentals are hot right now, at the end of the
day, rentals are not typically what's best for your
business," says Eric, noting there are some facilities
that thrive on rentals on a regular basis or even
operate on rentals alone. But for most, rentals are
not lifeblood. "Rentals can be very seasonal, very
sporadic, and they can be lower-yielding than in-house
programs."
Eric says in-house programming will bring in about
three times the return compared to a rental. There
are exceptions: large scale tournaments and events
put on by a body like the AAU will bring in more than
you would expect.
The trend has been spurred by several factors. First, a
lot of places that rental groups might normally use are
closed – churches, auditoriums, school gymnasiums
and field, etc. Some groups are also more willing to
travel to another county or state with fewer COVID
restrictions. Second, facilities have generally been
unable to operate at full capacity, leaving openings in a
schedule that might otherwise be packed with leagues,
tournaments, and other day-to-day programming –
"bread and butter" programming.
