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What is an Equipment Rental Agreement?
You can use this document to outline the terms and conditions of an equipment rental.
Whether you’re leasing machinery, tools, electronics, or furniture, it’s crucial to clarify each party’s responsibilities and obligations. A contract is evidence that an agreement between the equipment owner and renter exists—which is important if a dispute arises.
What can I use this template for?
LawDepot’s Equipment Rental Agreement works for short-term or long-term rentals and can apply to a variety of items, such as:
- Heavy machinery and power tools (e.g., forklift, skid steer, excavator, or other construction items)
- Catering and event equipment (e.g., tables, appliances, or tents)
- Electronics (e.g., computers, cameras, or other IT devices)
- Home/office appliances or furniture
Although you can easily customize this template for vehicle rentals, we do offer a Vehicle Lease Agreement that includes more specific terms for that situation.
How to write an Equipment Rental Agreement
Customize LawDepot’s Equipment Rental Agreement template to suit your needs. Simply answer our questionnaire to generate your document. Then, download your file as a PDF or print a copy for your records. (Variation for the experiment: Then, send it to the renter to sign online or print a copy to use in person. You can also download your file as a PDF to store digitally.)
The information you’ll need to fill out the form is as follows:
1. Describe the equipment
Provide as much information as is needed for a complete description. This can include identifying features such as:
- Its make, model, and/or serial number
- If the item is in new or used condition
- Its manufacture date
- Its value
2. Clarify lease terms
Specify any restrictions on how the renter may use the equipment. You can use the standard restrictions included in the template, write specific terms yourself, or allow the renter to use the equipment freely.
Our template also allows you to include terms such as:
- Pick up or delivery at the beginning and end of the rental agreement
- If the renter is responsible for maintenance or repair
- Required actions should the renter cause irreparable damage
Next, state general information about the lease agreement, including:
- The lease term (i.e., start and end dates)
- The rent amount and payment dates
- The damage deposit amount (optional)
LawDepot’s template walks you through many other terms that are often applicable to equipment rentals. For instance, we give options to include terms for renewing the lease, purchasing the equipment, or transferring the lease.
Feel free to skip whatever doesn’t apply to you, or use our document editor to make final changes to your agreement.
3. Address insurance and taxes
Some owners require renters to get insurance when renting special equipment. This can help cover repair costs if the equipment gets damaged. Coverage may also extend to any property damage or personal injury the renter causes while using the equipment.
Depending on the type of equipment and the length of the rental period, some states may legally require a renter to obtain insurance.
4. Add personal details
Provide the name and contact information of the equipment owner and the renter. Parties can be either individuals or businesses.
