(June 3, 2026) Florida United Methodist Conference Property Management Workshop
PCC One-Board co-chair Gary Butler and Lay Leader Al Tompkins attended a class at the UMC Annual Conference on June 3, 2026, presented by representatives of “Foundry Commercial,” an Orlando-based firm that works with the Florida UMC Conference on matters of real estate sales, church renovations, and church land and building use. These are the major themes of that workshop.
You will see that Pasadena Community Church has already addressed or is addressing many of the big issues that other churches are just confronting.
Executive Summary
- One study found that “80% of churches are one major expense from closing.” The facilitators called it “the Tyranny of the Urgent,” noting that most American churches were built in the late 1950s and early 1960s and are now approaching the end of their functional life without significant renovations. Most churches have not saved the funds needed to make such upgrades, including AC, roofs, and plumbing. The central theme was proactive stewardship rather than property sales.
- Churches should understand their assets, mission, deferred maintenance obligations, and future options before a financial crisis develops.
- Foundry emphasized capital reserves, flexible use of space, careful leasing practices, and understanding zoning and historic designation impacts.
1. Deferred Maintenance and Capital Reserves
- Many churches face aging roofs, HVAC systems, and infrastructure.
- Congregations without capital reserves lose strategic flexibility.
- Major repairs can quickly force difficult decisions, such as property sales.
- Recommendation: Build dedicated capital reserves before a crisis occurs.
Background note:
In 2025, the PCC Finance Committee voted to set aside a strategic reserve as a portion of the two land sales to pay for future maintenance. The plan is to continue saving a predetermined amount each year to meet future building and infrastructure needs. The UMC Book of Discipline does allow land sale income to be used in this way.”
2. Historic Designation: Benefits and Risks
- Potential downsides include restrictions on renovation, demolition, redevelopment, and future property use. The facilitators strongly advised against seeking or allowing any such designation. The restrictions apply not only to the exterior of the building but potentially to interior elements as well.
- Historic status may increase long-term costs and reduce flexibility. The main benefit of an historic designation is in property tax breaks, but churches already avoid property taxation. Historic designations also may qualify a property for modest grants and potential public goodwill.
- Recommendation: Fully understand future restrictions before pursuing designation. There are many downsides and few upsides.
3. Churches Becoming Landlords
- Many congregations are leasing classrooms, offices, fellowship halls, and other underused spaces.
- Potential tenants include schools, nonprofits, counseling services, and community organizations.
- Leasing can create revenue without selling property. However, if the tenant’s business or activities are deemed not to be part of the church’s mission, a local government may impose a property tax on the portion of the church property used for the business. It should be clear in the lease that the renter pays all of that tax bill and the payment should be collected monthly, not just when the bill is due at the end of the tax year.
- Recommendation: Evaluate whether tenants advance the church’s mission as well as its finances.
4. Shared Space Requires Strong Agreements
- Clearly define utility responsibilities. Measure how a tenant’s moving into the church building affects water and electricity use.
- Assign maintenance obligations.
- Require adequate insurance coverage. This applies to self-help groups too.
- Establish security and access procedures.
- Create scheduling and priority-use policies.
- Recommendation: Put every expectation in writing.
5. Flexible and Multi-Use Facilities
- Future church facilities are likely to emphasize utilization rather than square footage.
- Rooms should support multiple ministry and community functions.
- Security and child-protection considerations should be incorporated into all shared-space planning.
Major Downsides and Risks
- Becoming a landlord requires ongoing management.
- Rental income can be overstated if costs are not carefully tracked.
- Mission drift can occur if tenants become the dominant users of church property.
- Historic designation may limit future redevelopment options.
- Deferred maintenance compounds over time and reduces available choices.
Key Takeaways for Pasadena Community Church
“Remember what business you are in. Churches are not in the business of owning real estate. Churches are in the business of leading people to Christ. Everything we do should connect to that mission.”
Develop a formal capital reserve strategy. Constantly monitor those accounts to meet anticipated future needs.
Evaluate the utilization of every major building and room.
Carefully assess any future historic designation discussions.
Ensure all shared-use agreements are professionally documented.
Focus on how property can best advance ministry
A few projects to explore:
Skycrest UMC Clearwater: the church closed its preschool/daycare but is about to lease that space to a training center for adults with special needs. The lease will produce “significant” revenue.
First UMC Pinellas Park: owned 9 acres in two parcels. Church considered 10 offers for the land and took an offer that was not the highest, but planned to build affordable housing on the property.
1st UMC downtown Orlando owns 100,000 sq feet of building space and is about to lease a significant portion of it.
Quotes worth remembering from the workshop:
“Be careful what you give up to get what you want right now.”
“Property should serve the vision. Vision dictates ministry.”
“A church should be more than a building.”
“The best shared-space partnerships are ‘full-mission’ partnerships not just a revenue stream.”
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