Working out the details of your equipment rental agreement is a lot of work. We at EquipCalendar understand and hopefully we can help with our series of blog posts about the basics of an equipment rental agreement. Today's post focuses on care of the equipment. Here are some suggestions:
Specify that the Renter agrees that Equipment will be used in the prescribed manner for which it is intended. Remind the Renter that the Equipment can only be used in a careful and proper manner, and in a way that is consistent with Owner's instruction and/or Equipment manuals (especially if you will be furnishing manuals only).
Be sure to note that the Renter cannot undertake any repairs or alterations, or the addition of any accessories, without Owner's prior written consent. Also, any repairs made during the rental Terms, shall be paid by the Renter, including but not limited to labor, materials, parts and other items.
In case you missed the first post in this series, regarding "Defining the terms", you can find it
here.
In case you missed the second post in this series, regarding "Payment", you can find it
here.
In case you missed the third post in this series, regarding "Location of Equipment", you can find it here.
Working out the details of your equipment rental agreement is a lot of work. We at EquipCalendar understand and hopefully we can help with our series of blog posts about the basics of an equipment rental agreement. Today's post focuses on payment. Here are some suggestions:
Explicitly define the rental rates the Renter agrees to, for each and every piece of equipment included in the rental. Define the amount per minute, hours, days, weeks or months they are renting the equipment for.
Include an "authorization to charge" the debit or credit card on file and that all payments and fees due under this Agreement will be charged using that card.
List all "other charges", this can include optional services, such as cleaning and repair, applicable taxes, loss or damage or repair, late fees, expenses to recover unreturned equipment by the Renter, and all costs to collect unpaid monies due (including insufficient funds).
Also, should your business support installment payments, define the terms (days or dates within a due date) for making those payments and any surcharge per period (hours, days, weeks, months) for late payments.
In case you missed the first post in this series, regarding "Defining the terms", you can find it
here.
The best place to start designing your rental agreement is to define the terminology you will be using in your equipment rental agreement. Think of it as a glossary or dictionary, i.e. give meaning to the words you are going to be using repeatedly. Here are some suggestions:
Renter: The exact name(s) of the person, persons or business, including staff name(s), renting your equipment. Include their address and any or all contact info. Establish their identity!
Owner: The name of your legal entity representing your rental business. Include full address and multiple forms of contact. Give the Renter every available option for reaching you in need!
Equipment: The brand, model name and serial numbers of any or all equipment provided as part of this rental agreement. Even if it's just an accessory provided as part of the main rental, include it here.
Consent: Explain in your agreement that the Renter fully understands everything stated herein.
Use: The customary use of the rental equipment, including it's manuals, in accordance with any applicable law.
Agreement: This document and how it represents the entire understanding relating to the subject matter hereof and prevails over any prior or contemporaneous, conflicting or additional communications. The Agreement can only be modified by a written amendment signed by the Renter and Owner.
Inspection: Confirm the Renter has examined the rental equpiment items and found all items to be in good condition at the time of delivery, and agrees to return all items in the same condition as received (normal use expected).
Rental Period or Term: Explicitly state the absolute start and end dates. Define the return policy and any credits, or lack of refunds, for any unused minutes, hours, days, weeks or months. Also define any policy you may have regarding rental extensions, such as sufficient notice (no. of hours or days?).
Stay tuned for the rest of our ten part series on the basics of a rental agreement...