What lease agreements are for

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 Legislation

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, including:

• community group use of the school hall
• groups wanting to use school property for after-school care or weekend sports
• early learning services leasing an empty classroom
• a swim school leasing the school pool
• the school being used as a polling booth on election day.

Eligibility for leasing school property

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 eligibility criteria for third parties to use school property.

Risks to consider before entering into a lease agreement

If eligibility criteria are met, boards should consider the risks that might come with a lease agreement.

Some things for boards to consider are:

• risks to the school (costs or problems from having people who are not part of the Ministry 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
• 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 inconveniences
• special rules around sleepovers in schools.

Setting agreement terms

School boards can choose agreement terms like length of occupancy and rent. You do not have to lease your property to anyone.

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 that boards approve terms of no longer than 5 years. Shorter terms allow more flexibility to review if the arrangement 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 are leasing to. For long-term agreements, you may like to plan for a way to raise rent over time 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.