Rethinking Church Rentals: Why "Just Let Them Use the Space" Isn’t Sustainable—or Faithful

Too often, churches give away space without calculating the actual cost. Or worse, they charge so little that they’re unknowingly subsidizing another organization while their own ministry is struggling to stay afloat.

I recently had the chance to talk with Grace Pomroy on the Future Christian Podcast about her work in helping churches fund sustainable models of ministry. While the entire conversation is worth your time, one section hit particularly close to home: the question of how—and whether—churches should rent their space.

Grace, who has both a finance background and deep theological roots, put it plainly: Your mission determines your model, but your mission doesn’t excuse you from doing the math.

Counting the Real Cost

When churches rent space, whether to an AA group, a nonprofit, or another congregation, the instinct is often to “be generous.” And that’s commendable. But generosity doesn’t mean ignoring the cost of toilet paper, water, electricity, cleaning, security, wear and tear, and staffing. As Grace noted, “Your treasurer has been dying for you to ask them to calculate this stuff.”

Even groups like AA that traditionally pay only a nominal fee expect to contribute. It’s part of their own practice of accountability and stewardship. By undercharging or waiving rent entirely, churches may actually be disrupting that process of growth.

Mission-Driven, Not Market-Driven

None of this means churches should start operating like landlords. The goal isn’t profit—it’s alignment.

One of the best practices Grace highlighted was the use of sliding-scale rent. For example, a Seattle church might charge a small fee to a Tai Chi instructor, a moderate fee for a community concert, and full market rate for a wedding. The key is transparency. Everyone understands they’re part of a broader ecosystem of support—and that’s a compelling, faithful economic model.

Some congregations, as Grace described, even budget for below-cost or no-cost rentals as part of their mission spend. That’s faithful. But again, it starts with knowing your actual costs.

Avoiding the “Salad Dressing Mistake”

One of the most telling cautionary tales comes from a Harvard Business Review article titled “Should Nonprofits Seek Profits?” by William Foster and Jeffrey Bradach. In it, they describe a nonprofit that thought it was producing bottles of salad dressing for $3.50 each—only to discover, after a thorough cost analysis, that the true cost per bottle was closer to $90.

The nonprofit had failed to account for hidden expenses like management time, shared resources, and indirect overhead. The same mistake happens in churches all the time: we assume it’s fine to rent space for $50 a night, thinking we’re being hospitable, when in reality we may be operating at a loss. This isn’t just about accounting—it’s about sustainability, integrity, and faithful stewardship.

Final Thought: Stewardship Is Discipleship

At the heart of this conversation is a broader point: Renting space is not a side hustle for churches. It’s a form of stewardship. And like all stewardship, it must be practiced with discernment, clarity, and care.

If your church is exploring building use, don’t start with a spreadsheet—start with your mission. But once you have that, bring the spreadsheet in. Know your numbers. Count the cost. And then build something beautiful and sustainable—together.

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Grace Pomroy’s book is called Funding Forward: A Pathway to More Sustainable Models for Ministry, and is available from Broadleaf Books. You can listen to our full conversation on the Future Christian Podcast wherever you get your podcasts.