Renting out equipment to private individuals requires a rental contract to be drawn up. But not everyone is a trained lawyer, and this can quickly become a headache.
The legal principle for drawing up a contract is based on the freedom to stipulate, in other words, the rental company's freedom to draft clauses as it sees fit. In addition to mentioning the purpose of the contract or the customer's contact details, introducing clauses can prove useful in limiting risks and providing maximum security for your business.
So how do you make sure you don't forget anything? How do you protect yourself and your customers? How do you divide up responsibilities?
Whether you're just starting out in the rental business or you're more experienced, here are the 5 essential clauses in any equipment rental contract.
The validity of the contract essentially depends on demonstrating :
1- Type of equipment
Yes, it seems obvious, the lessor must specify the object to which the general rental conditions apply, i.e. :
- the available product
- its reference
- other accessories such as a helmet to accompany the rental
This clause can be accompanied by conditions of use to protect against misuse of the equipment. Various elements can be specified here: use is for tourist purposes, no lending/subletting, restriction to a given territory, etc.
Example clause: "When parking equipment, it is compulsory to use the anti-theft devices provided and to take detachable items with you."
Lokki's advice 💡
Whether you have a small or large fleet of equipment on hand, think about referencing your products with ID numbers. You'll be able to differentiate them easily and save time!
2 - The duration indicated in the equipment rental contract
The contract specifies the rental period and defines :
- date and time of pick-up
- the date and time of return of the equipment
This clause is all the more important as the transfer of risk takes place when the hirer takes possession of the equipment.
Be aware that for medium/long-term rentals, it may be the responsibility of the renter to take care of equipment maintenance.
Lokki's advice 💡
Make a clear note of the consequences of failure to return the goods on time.
3- Rental contract terms and conditions
Il s’agit ici d’indiquer le prix de la location, les modalités de calcul de celui-ci mais également les éventuelles pénalités de retard de paiement et la demande d’un potentiel dépôt de garantie.
You can also detail in this clause the consequences of a reservation cancellation, for example.
Lokki's advice 💡
Indicate the type of deposit required. Please note that it is forbidden to deposit any form of identification!
4- The tenant's obligations
On définit dans cette clause les obligations qui incombent à celui qui loue le matériel : prendre soin du vélo, respecter le code de la route en roulant sur les pistes cyclables, payer le prix, respecter l’usage convenu…
Le loueur peut convenir que le vol, la perte et les dégradations causées au matériel seront à la charge du locataire ou lui proposer de prendre une assurance à cet égard, augmentant de fait le prix de la location.
Lokki's advice 💡
Remind the tenant that third-party liability is useful, as it covers bodily injury and property damage caused to self and third parties.
5- The lessor's obligations
The renter must provide a bike in good working order, which implies regular maintenance of the equipment. He must also inform and warn of the risks involved in using the product he provides.
Thelessor is obligatorily liable in the event of damage caused by a latent defect in the item, whether or not he was aware of it when the equipment was made available (manufacturing defect, for example).
Lokki's advice 💡
It may be a good idea to draw up a statement of condition specifying how the equipment is to be maintained.
As you can see, there's no such thing as a standard rental contract. However, with the help of these few essential clauses, it's possible to create simple and effective general terms and conditions (CGL) detailing the responsibilities of each party, to protect both you and your customers.
A final tip on renting? Don't forget to have the contract including the CGL signed in duplicate, accompanied by the handwritten phrase "read and approved". An informed customer is worth two!
Last but not least, make sure you adapt your contract to your business!
