Renting equipment to consumers requires a rental contract. The trouble is, not everyone has legal training, and it can quickly turn into a headache.
Under French law, drawing up a contract is based on the freedom of contract: in other words, the rental business is free to write the clauses it wants. Beyond stating the purpose of the contract or the customer's contact details, adding clauses can help limit risks and make your business as secure as possible.
So how do you make sure you don't forget anything? How can you protect yourself while protecting your customers? How should responsibilities be shared?
Whether you are just starting your rental business or already have some experience, here are the 5 essential clauses for any equipment rental contract.
For the contract to be valid, it essentially needs to set out:
1. The type of equipment provided
Yes, it seems obvious, but the rental business must specify the item covered by the general rental terms, namely:
- the product available
- its reference
- any other accessories, such as a helmet, that may come with the rental
This clause can come with terms of use to guard against misuse of the equipment. Several points can be specified here: use for tourism purposes, a ban on lending or subletting, restriction to a given area…
Example clause: "When the equipment is parked, the locks provided must be used and any detachable items must be taken."
Lokki's tip 💡
Whether your fleet of equipment is small or large, give each product an ID number. You'll be able to tell them apart easily and save time!
2. The duration stated in the equipment rental contract
The contract specifies the rental period and sets out:
- the date and time the equipment is collected
- the date and time the equipment is returned
This clause matters all the more because the risk passes to the renter when they take possession of the equipment.
Note that for medium or long-term rentals, the renter may be responsible for maintaining the equipment.
Lokki's tip 💡
Clearly state the consequences if the equipment is not returned on time.
3. Pricing terms in the rental contract
This is where you state the rental price and how it is calculated, as well as any late payment penalties and whether a security deposit is required.
You can also use this clause to set out what happens if a booking is cancelled, for example.
Lokki's tip 💡
State the type of deposit you take. Be careful: in France, it is forbidden to hold on to an ID document as a deposit!
4. The renter's obligations
This clause defines the obligations of the person renting the equipment: taking care of the bike, following the highway code when riding on cycle lanes, paying the price, using the equipment as agreed…
The rental business can agree that theft, loss and damage to the equipment will be charged to the renter, or offer them insurance for this, which in turn increases the rental price.
Lokki's tip 💡
Remind the renter that personal liability insurance is useful, as it covers injury and damage caused to themselves and to third parties.
5. The rental business's obligations
The rental business must provide a bike in good working order, which means maintaining its equipment regularly. It must also inform renters and warn them of the risks involved in using the product provided.
Under French law, the rental business is always liable for damage caused by a hidden defect in the item, whether or not it was aware of the defect when the equipment was provided (a manufacturing defect, for example).
Lokki's tip 💡
It can be worth creating a condition report that sets out how the equipment should be maintained.
As you'll have gathered, there is no such thing as a standard rental contract. However, with these few essential clauses, you can create simple, effective general rental terms that set out everyone's responsibilities, protecting you while protecting your customers.
One last tip for rental? Remember to have the contract, including the general rental terms, signed in duplicate, with the handwritten words "read and approved" (lu et approuvé). Forewarned is forearmed!
Finally, always make sure you adapt your contract to your business!
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