What is an Equipment Rental Agreement?
This agreement includes two parties- one who rents equipment and the other who gives it on rent. An equipment rental agreement is crucial to leasing heavy machinery, tools, vehicles and more.
This allows temporary use of heavy goods, without making any major commitments. Equipment rental agreements are signed to ensure quality of goods and timely delivery. Also, to avoid any conflicts regarding payment deadlines.
Why are Rental Agreements Important?
Signing an agreement will provide both parties with clarity and confidence. Since these are legal documents, both parties can file petitions in case of any glitches. A rental agreement will also include guidelines in case of any damage.
All in all, it helps both parties from facing insecurities during the rental tenure.
What to check before signing an equipment rental agreement?
There are a few factors that one needs to consider before signing a rental agreement. A little misunderstanding can lead to major conflicts.
So, why take the risk? Read this article and discover the factors that’ll help you choose one of the best equipment rental companies.
1. Breakdown of Payment
Let’s begin by addressing the elephant in the room- money. No one wants to be charged for stupid add ons. So, the best way to initiate the journey would be to gain full clarity on the fee structure. Including late fines, handling charges, advanced deposits, etc.
Also, if the client fails to meet deadlines there remain legal implications. Thus, rental of goods agreement ensures clarity between both parties.
2. Maintenance disputes
Conflicts of varying degrees take place when equipment rental agreement terms and conditions aren’t met.
This could range from a late fine to a damaged trailer. Such maintenance conflicts can have adverse effects on the experience of both parties.
To avoid such hitches, make sure you give the agreement a thorough read. Understand the guidelines provided against damage and missed deadlines.
Make sure you understand the maintenance policies clearly before signing the equipment rental agreement.
3. Accurate personal information
While filling out the equipment rental agreement form, be very careful. Recheck the credentials provided to spot any inaccuracies.
If you do find one, consult with the provider immediately. Don’t submit the form with any confusion in mind.
4. Insurance
All equipment rental companies offer insurance and liability clauses. This defines the monetary liability of the renter.
Reading these details will give you an idea of the charges that you are expected to cover as well as those covered by the provider.
Having a clear idea will keep you safe from exorbitant maintenance charges.
Often delivered materials are faulty. Such cases are also covered in the insurance section. This will help you avoid paying unnecessary handling fines.
5. Restraints
Although rented, all such supplies come with limitations. Not only tenure but also operations.
Some supplies are restricted from being used in certain locations or for certain purposes. Acting against such guidelines may have adverse effects.
Thus, be well-informed before signing the agreement.
6. Added responsibilities
Heavy machinery and supplies require effort to be loaded, unloaded, assembled and dismantled. Therefore, each duty is divided between two parties.
Often such liabilities are with the renter and often not.
Giving the document a thorough read will give you an idea about who has which duty. Therefore, lowering risks of dispute.
Raed More:
How to Choose The Right Equipment Rental Company?
5 Common Mistakes to Avoid When Renting Equipment
The Bottom Line
Equipment rental journeys are often long and exhausting. To combat which, we’ve tried to put together a list of things that’ll help you avoid setbacks during the process. From insurance charges to recommendations, we have it all covered.
Make renting equipment easier than before with a click and a few minutes of reading.
