Equipment Rental Agreement

What is an equipment rental agreement template?

An equipment rental agreement is a legal document that defines terms and conditions for renting certain equipment between a client and a rental provider.  This is a simple document that defines mutual rights and obligations for both parties, a description of equipment, the rental period, and fees involved. The present sample equipment rental agreement is suitable for various types of equipment, for instance:

• microphones and recording equipment (e.g., recording a podcast, filming TikTok or YouTube content);
• industrial equipment (e.g., refrigerators for shops);
• machinery equipment (e.g., construction of shopping malls, houses);
• agricultural equipment (e.g., for harvesting crops, keeping cattle), etc.

This document could only be used for tangible assets or equipment. If you are planning to rent out real estate as a short-term rental, a residential lease or short-term lease agreement shall be used instead.

What to include in a rental equipment agreement template?

Drafting a comprehensive equipment rental agreement from scratch is a challenging task. While the law does not define the exact list of clauses this type of a contract should have, inclusion of certain elements remains essential. Below we made a list of key elements a solid rental agreement for equipment template must have.

Identification Details

The parties involved in an equipment rental agreement are a client and a provider. A client, also known as a renter, is an individual or a business that needs certain equipment for temporary use. A provider is a professional rental business that has necessary equipment.

The text of a document must include their full name, residential or business address, and contact information. At the end of the document, both parties shall put their signatures.

Description of Equipment

Another essential component for every rental equipment agreement sample is a detailed description of equipment. The description must include:

• make and purpose of the equipment;
• quantity of equipment; and
• quality or in which condition the equipment is being provided.

The parties can provide a general description of equipment directly in the text of a contract and attach a more detailed description in a separate contract’s addendum.

Rental Period

Every equipment rental lease agreement form must state the exact period of time within which a client will use rented equipment. The rental period could start on the date of signing this agreement or on any other later date in the future. A client can use rented equipment until a specified date or as long as a client needs such equipment (i.e., an undefined period of time).

Once the rental period expires, a client has the following obligations:

• to return equipment immediately to a provider;
• to return equipment in the same condition at the start of a rental period;
• to pay late fees in case the return is made later than agreed.

Payment Terms

A sample rental agreement for equipment requires inclusion of detailed payment provisions. This section must include:

• payment model (e.g., fixed fee, hourly rate, or daily rate);
• payment instructions (e.g., in full on the date of signing this agreement, every week);
• payment method (e.g., cash, PayPal).

Insurance Clause

In the course of equipment’s usage, equipment could be damaged or lost. To prevent a provider from incurring substantial losses, it is common for an equipment rental agreement template to have a standard insurance clause.

This insurance clause obliges a client to take additional insurance coverage against equipment loss or damage.

Termination Clause

A rental equipment agreement sample is a simple document that parties can end any time. In order to do so, the text of a contract shall provide a notice period within which one party must inform the other party about termination.

Upon the contract’s termination, a client undertakes to pay for all the services rendered, as well as to return equipment.

How to customize an equipment rental agreement at FasterDraft?

To get a fully customized legal document template, follow the instructions given below:

1. Click the “Create Document” button.
2. Answer simple questions in our equipment rental agreement form.
3. Select a template’s format—equipment rental agreement PDF or Word.
4. Make a payment.
5. E-sign, download, print out, and use the document.