Lease agreements for third-party use of school property

School boards can allow other organisations to use school property under sections 162 and 163 of the Education and Training Act 2020.

Education and Training Act 2020 – New Zealand Legislationopen_in_new

We provide schools with a range of agreements depending on the leasing or hiring situation. Schools must use agreements that have been approved by us. There is no automatic right for third parties to occupy schools.

Schools can be leased or hired out for a number of reasons, for example if:

• a community group wants to use the school hall
• a group wants to use school property for after-school care or weekend sports
• an early learning service wants to lease an empty classroom
• a swim school wants to lease the school pool
• the school is being used as a polling booth on election day.

Eligibility is based on the community purpose or educational benefit that will come from leasing the land.

The Education and Training Act 2020 sets out the eligibility criteria for third parties to use school property.

If the eligibility criteria are met, the school board should then consider the risks that might come with a lease agreement. Some things to consider are:

• the risks to the school – like the costs or problems that could arise from having people who are not part of NZSPA, the Ministry of Education, or school staff on school property
• the future of the school – teaching spaces or land may be needed for roll growth 
• whether you'll be committing future boards to long-term agreements that may put extra pressure on school resources
• the extra costs to the school, such as electricity and maintenance which won't
  be paid for by the third party
• whether your school community will consider it an acceptable use
• whether third-party staff or employers need to be police vetted
• if the benefits to your school will outweigh the inconveniences
• any special rules around sleepovers in schools.

School boards can choose agreement terms like length of occupancy and rent.

Length of occupancy

The lease is a legal agreement that means the occupant has a right to use the property for the full term of the agreement.

We recommend boards approve terms of no longer than 5 years. Shorter terms allow more flexibility to review the arrangement to make sure it still works for the school. The maximum occupancy term that we can offer is 35 years.

Rent

School boards can negotiate rent directly with the organisation they’re leasing to. For long-term agreements, you may like to plan for a way to raise rent over time, in line with inflation.

For other education sector users, there are often pre-agreed costs. Where applicable, these are noted in the application form for each type of use.