Almost any small business can set up a rental department and offer equipment ranging from power tools to carpet cleaners to computer network modems. Even a small department can be a good way to increase your competitive edge and generate additional revenue. As the lessor, you’re not only responsible for purchasing and maintaining equipment, but also for protecting your business by making sure each customer signs a rental agreement.
Goals and Objectives
A simple equipment rental agreement clarifies the terms and conditions for what most often constitutes a short-term contract. This agreement identifies the type of equipment, the duration of the rental period and the payment amount. It also lays out specific guidelines for using, storing and returning the equipment. Once signed, the agreement becomes a valid contract, so make sure to address any questions or concerns before signing and delivering or giving the renter the equipment.
Standard versus Custom Contract
Small businesses have multiple options for creating an equipment rental agreement. You can work with an attorney and create a custom agreement or modify a sample agreement or template you find on the Internet and then review it with an attorney. Samples and customizable templates are available on websites such as RocketLawyer.com, LawDepot.com and FindForms.com.
Terms and Conditions
Terms and conditions are the rights and obligations of both parties as they pertain to the equipment. Clear, well-written clauses are vital to protect your business from liability or financial losses that may result from injuries due to misuse, damaging or failing to return the equipment. With a simple agreement, most terms and conditions are standard inclusions based on your company’s rental policy rather than on negotiated terms. For example, most rental policies have standard rental periods, charges and security deposit fees.
Rental agreements for power tools and machinery should include a warranties and representations section. In this section, you make certain promises about the condition of the equipment. These promises serve to protect your business from liability if the customer gets hurt and claims the injuries were due to malfunctioning or damaged equipment. For example, state that the equipment will be in good working condition and fit for its purpose on delivery. Some agreements also include no alterations, assumption of risk, and release of liability clauses that increase protections from potential legal actions even further.
- Photo Credit kzenon/iStock/Getty Images
Simple Purchase Agreement
Purchase agreements are legal documents companies use when contracting to buy goods or services in the business environment. Contracts are quite common...
Equipment Use Agreement for Employees
If your business provides equipment such as cell phones, computers or tools that employees use both on-site and off, or if you...
How to Write a Basic Contract Agreement
In legal terms, a contract is any agreement between parties to exchange things of value, such as goods and services for cash....
How to Lease Mowing Equipment
Leasing lawn mowing equipment may be a good decision for you if the total lease costs are less than the cost of...
How to Get Free Forms for Farm Rental Agreements
Entering into a farm rental agreement protects all parties involved. When you have things in writing, you can always go back over...
How to Write Proposals for Office Computer Equipment
Office computer equipment is a costly expense for any business. Computer equipment can become obsolete or outdated very quickly and, in order...
Simple Monthly Rental Agreement
In a shaky economic climate or because of individual circumstances, many people choose to rent an apartment or house rather than entering...