Equipment Rentals

An equipment rental agreement form is a legal document that outlines terms, conditions, and risks when equipment is rented out to a lessee by the lessor. These agreements benefit both parties by clearly defining the responsibilities, expectations, and liabilities related to the rental.

For example, a company offering boat rentals would name each party involved, list possible risks, explain the payment schedule or requirements, ask the renter to agree to follow certain guidelines and laws, include a mandatory release of liability clause, and ask for a signature.

A rental agreement focuses on the asset being loaned, while a liability waiver focuses on protecting the business if the renter is injured while using the equipment. Most equipment rental agreement forms include a liability cause or waiver.

Yes. You should use an equipment rental agreement form every time you rent out equipment, regardless of the equipment’s size or value. Skipping this step can cost your organization thousands. The Institute for Legal Reform found that small businesses are uniquely affected by litigation costs, with commercial tort costs for these companies amounting to $160 billion in 2021.

While these agreements are not guaranteed to keep businesses out of lawsuits, the potential protections and savings far outweigh the cost of creating one. Additionally, these agreements can improve your relationships with renters by ensuring you're all on the same page, help you meet insurance requirements, and generally protect your peace of mind.

Equipment rental agreement forms can be used for virtually any physical asset that you allow a lessee to use for a fee. These forms are most commonly used for heavy machinery, construction equipment, audiovisual and media gear, sports and recreational gear, electronics, and home improvement tools.

However, if you have rental equipment that doesn’t fall into these categories, you can still create an equipment rental agreement form for it.

While you should always consult a lawyer when drafting legal documents, equipment rental forms typically include:

• Acknowledgement of each of the parties involved
• A description of the equipment, along with identifying factors like a serial number (if applicable)
• A description of the rental fees and when they must be paid in full
• Details or guidelines relating to proper equipment usage
• Acknowledgement of risks of using the equipment and acceptance of the equipment in its current condition
• Indemnity clauses that govern compensation or lawsuits against you in the event that an accident occurs
• Designation of certain responsibilities, like repairing or maintaining equipment and providing insurance for it
• A termination clause

Additionally, your lawyer may recommend you add other clauses to the agreement depending on your business’s needs and operations. This is why it’s key to choose a digital waiver software provider with flexible, customizable forms, like Smartwaiver!