Story written for Compact Equipment Magazine and first appeared in April 2021 issue
You know how long you need to rent a machine. You know the rate and payment options. You even know how you want attachments factored into the agreement. Now, it is time to get down to the nitty gritty: do you know what all is included in the actual rental agreement?
In addition to everything discussed in part one of this two-part article series, here are a few things to know about the agreement.
First, if you missed Part 1: FAQs about equipment rental agreements or need a refresher on what is involved in renting equipment, the article is a helpful place to start.
The Rental Agreement
The agreement structure varies a bit based on the rental house. At RDO Equipment Co. we do quite a bit of equipment rentals in addition to selling new and used machines. Our process is to first set up a master rental agreement, then addendums as needed.
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The master agreement includes all the legal info. Insurance requirements would be noted here. While they will vary, RDO, for example, requires proof of General Liability and Property insurance for demo, loaner rental, and rent-to-purchase agreements.
The master also spells out that the renter knows how to safely operate, transport, and maintain the machine, as well as what happens in the event of damages to the machine, and any adjacent property or other equipment. If initial operator training or transport is needed, the agreement will include that. It also clarifies what maintenance is the responsibility of the renter and what is taken care of by the rental center or dealership. Basic daily maintenance typically is on the renter while more significant preventative maintenance is the responsibility of the center or dealership.
Finally, an agreement will clarify that rental payments are not being applied to a future purchase of the machine, unless it is a rent-to-purchase agreement.
The addendum notes the equipment-specific details like the model number and monthly payment, and that the renter accepts the condition and will bring back the machine in like condition. The monthly payment portion will have a bit more info than the number itself.
“Every company has additional costs built into rental agreements, like taxes and fees, so it is important to ask about all costs outlined in the agreement and have the full picture of what is being charged,” Mike Fenton, RDO general manager of rental, advises.
Rental is growing in popularity and often the right choice for many companies and unique situations. To have the best rental experience, be prepared to know all these details behind the rental agreement.