Equipment and Tool Rental Agreement

1. Who does what in the lease agreement?

"I, the undersigned, Mr. Dupont, agree to take as my spouse..." No, just kidding, but that said, a lease agreement is like a mini marriage with an expiration date. So, just like in a contract between two lovers, the first piece of information in this lease agreement concerns the "undersigned," that is, the parties involved in this union. Specifically, you must indicate:

1. The lessor, YOU, your equipment rental company, and more specifically:

- Your first and last name
- Your company's legal information
- Your business address
- The first and last names of the company's legal representative

2. The renter of your equipment, whether an individual or a business:

- Their first and last name (check carefully with their ID card!)
- If they are a professional, all relevant information: company, address, legal status

Lokki's tip 💡
‍Whatever happens, don't forget to write down the phone number or email address... and check this information, along with the ID, a Kbis certificate, or a Siren number for rental contracts intended for professionals.

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2. What are we renting?

Yes, we know. But sometimes, the simplest things escape us! So, let's recap: you know your equipment, so it's up to you to describe it as accurately as possible in your rental agreement, clearly specifying the general rental conditions, namely:

- The item being rented: mirror, drill, beer tap, mountain bike, evening gown, coffee machine, carpet cleaner, scooter... (you can rent anything, we told you!)
- The quantity rented
- Its reference
- Accessories also rented with the main equipment

Lokki's tip 💡
Specifythe condition of the rented equipment in the contract, when the equipmentis handed over andwhen it is returned. Objective: to ensure that everyone knows what has been rented. If possible, take photos of the equipment and any scratches or scuffs.

3. How do we rent?

It sounds very academic, we know, but don't fall asleep just yet, we still have more to tell you! And it's better to go into detail because, as we said, there is no standard rental agreement template! So, after the what comes the how. Basically, the description of the equipment is often accompanied by terms of use to prevent misuse of the equipment . For example, you can specify:
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- That the equipment is for tourist use only
- That it is forbidden to lend/sublet the equipment (yes, it happens!)
- That the equipment must not leave a specific area...
- That it is mandatory to protect the products if they are moved
- etc., etc.

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Lokki's tip 💡
Remember to reference your products using ID numbers, even if you only have a small fleet (for now... you have to aim high in life!). This will make it easy to differentiate between them and save you time (so you can develop your equipment rental business, of course!).

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4. How much does it cost to rent?

Who has ever seen a receipt without the price on it, except when it's a gift you don't like and you rush to exchange it as soon as Grandma turns her back?

Therefore, in your equipment rental agreement, clearly state:

- The rental price (per calendar day)
- How the rental price is calculated
- Any penalties for late payment
- Request for a potential security deposit
- The consequences of canceling a reservation

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Lokki's advice 💡
‍Be sure to specify the type of deposit required in your equipment rental agreement. Make sure it is proportional to the price of the item... A computer park worth tens of thousands of euros is not worth the same deposit as a bicycle helmet :-) Please note that it is prohibited to deposit an identity document!

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5. When should you rent your equipment?

Let's be clear about this. The equipment comes back home. It's not on a permanent contract with the renter. We know it likes it there, but no, sorry.

So, there is a beginning... and an end! Therefore, in the equipment rental agreement, clearly state

- The date and time of possession of the equipment
- The date and time of return of the equipment

This clause is all the more important given that risk is transferred when the equipment is collected by the lessee: legally, they are therefore responsible for the well-being of your equipment. Moreover, in some medium/long-term leases, responsibility for equipment maintenance is entrusted to the lessee. You guessed it: yes, this must of course be included in the lease agreement!

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Lokki's advice 💡
Clearly note the consequences of not returning the item on time. No, the corner doesn't work.

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6. Where can we rent?

Where, what, how? You must be thinking that Coach Lokki has lost his mind. Not at all. We are just being meticulous, that's all. So, we would like to remind you that your rental agreement must specify where the equipment will be delivered and returned, and who will be responsible for this.

Why is this important? Because as a rental company, you can offer your tenants several options:

- Drop off equipment at another branch
- Drop off directly at the store
- Return equipment at home.

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Lokki's tip 💡
If you want to ensure good service quality, offer several options depending on the customer. Make sure you have a contract template that specifies all these choices, and don't forget to check the relevant box so that there is no doubt about the terms of the loan!

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7. How do we pay for the rental?

In euros, dollars, dinars, bitcoins? Don't go overboard, though.

However, clearly specify, below the total price including tax to be paid by the tenant, the various authorized and available payment methods:

- Checks
- Cash
- Credit card
- Bank transfer

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Lokki's tip 💡
Consider adding a rental deposit clause to the rental agreement, which the tenant can accept or decline before confirming the transaction. When determining the amount, take into account compensation for major incidents as well as the maintenance and repair of your equipment throughout the year.

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8. What are the general rental terms and conditions?

You can also fill in the general rental terms and conditions, or GTC for short. These small lines that we never look at, because they are often written in 50-point font on contracts, are nevertheless very useful... Because they serve to frame all of your rental company's contracts and are therefore applicable to all potential renters, unlike the special conditions, whose clauses specifically frame the rental, depending on the product rented and the renter.

In order to be contractually binding, the general rental terms and conditions must be included in the rental agreement.

In concrete terms, the general rental terms and conditions clearly and explicitly specify what the rental service means for your company, in order to limit disputes and specify each party's responsibilities. They therefore serve as a basis for specific clauses and are negotiable.

You will obviously need to adapt the CVLs to the products and equipment you rent. The goal is always to make the activity as safe as possible:

CVs often consist of two parts.

1. One specifying the lessor's obligations:

- Provide equipment that is in good working order...
- And safe, thanks to regular maintenance and thorough checks before each new rental.
- Inform and warn renters about the risks associated with using the rented equipment.
- If necessary, create an inventory specifying the terms and conditions for maintaining the equipment.

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Lokki's tip 💡
‍The rental company is liable for any damage caused by a hidden defect in the item, whether or not it was aware of this defect when the equipment was made available (e.g., manufacturing defect).

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2. The other presenting the tenant's responsibilities:

- Take care of the equipment,
- Respect the rules of the road if it is a bicycle or scooter,
- Do not sublet the equipment,
- Respect the agreed use...
- payment terms,
- equipment,
- clauses in case of dispute,
- insurance,
- civil liability,
- return
- deposit for rented equipment.

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Lokki's advice 💡
‍Remind the renter that third-party liability is useful, as it covers bodily injury and property damage caused to self and third parties.

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9. How do you conclude a rental agreement?

Nothing in a contract should be subject to interpretation... So, in conclusion, it is necessary to specify how the lease agreement binds both parties, with this short sentence above the tenant's signature.

"I certify that I have read and accept the general rental terms and conditions set out in the contract."

or even

"I acknowledge that I have collected the equipment in good working order and undertake to return it in the same state of wear and tear."

It's time to sign, and always remember to preface a signature with the handwritten words "read and approved".

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Lokki's advice 💡
‍Don't forgetto have the contract signed in two copies, including the GTC, with the handwritten note "read and approved." And above all, make sure to modify your contract to suit your business! If you add accessories or features, don't forget to specify this in writing in your rental contract.

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Still lost in the location? We've put together a carefully crafted contract template for you.