Equipment rental agreement template you can fill in online
Updated · Reviewed by Israel Margulies, founder and CEO of High Point GPS
An equipment rental agreement records who rents which machine, for how long, at what rate, how many hours each period includes, and who pays for fuel, damage and late return. Fill in the template below, print it or save it as a PDF, and have both sides sign at checkout. It is a starting point, not legal advice: have your own lawyer review it for your state.
Most disputes on a rental come down to three things nobody wrote down: the hour meter and fuel level at checkout, how many hours the rate includes, and what condition the machine has to come back in. This template puts all three on the first page, next to the rates.
The terms follow the usual structure of rental contracts used by equipment rental companies: rental period, rates and overtime, payment and deposit, use and operators, daily care, maintenance, loss and damage, insurance, return, late return and default, indemnity and the whole-agreement clause. Change any of them to match how your business works.
If you rent equipment out every week, the agreement is only the paperwork. The work is tracking which machine is where, reading meters at checkout and return, billing overtime correctly and sending the invoice. That is what rental software is for.
Equipment rental agreement
Fields: Owner (rental company) · Owner address and phone · Renter (company or person) · Renter contact and phone · Renter address · Job site or delivery address · Equipment (make and model) · Serial or unit number · Attachments included · Hour meter at checkout · Fuel level at checkout · Start date and time · Expected return date · Rate per day / week / month · Hours included per day / week / month · Overtime rate per hour · Deposit · Delivery and pickup charge · Renter's insurance policy number · Governing law (state)
Condition at checkout
- Walk-around done, existing damage noted and photographed
- Fluids checked, fuel level recorded
- Attachments and accessories listed
- Operator shown the controls and safety devices
- Operator's manual and safety decals on the machine
- Rental period. Owner rents the equipment listed above to Renter from the start date until Owner has it back, by return to Owner's yard or by Owner's pickup. Stopping work with the equipment does not end the rental.
- Rates and overtime. Rent is charged per started day, week or month at the rates above. Each period includes the hours shown. Hours above that, read from the hour meter at checkout and return, are charged at the overtime rate.
- Payment and deposit. Renter pays the deposit before checkout and the rent on the terms shown on Owner's invoice. Owner may apply the deposit to unpaid rent, fuel, cleaning or repairs and returns the balance.
- Use and operators. Renter uses the equipment only for its intended purpose, within its rated capacity and at the job site above, and only through operators who are trained and authorized as the law requires. Renter does not lend, sublet or move the equipment to another site without Owner's written consent.
- Daily care. Renter carries out the daily checks in the operator's manual, keeps the equipment fueled and greased, and stops using it and calls Owner at the first sign of a fault.
- Maintenance and repairs. Owner carries out scheduled maintenance and Renter gives Owner access to the equipment to do it. Renter does not repair or modify the equipment without Owner's approval.
- Loss and damage. From checkout until Owner has the equipment back, Renter is responsible for loss, theft and damage other than normal wear, and reports any accident, theft or damage to Owner within 24 hours.
- Insurance. Renter keeps liability insurance and coverage for the equipment at its full replacement value for the whole rental, and gives Owner proof before checkout.
- Return. Renter returns the equipment clean, with the fuel level recorded at checkout and in the same condition apart from normal wear. Fuel, cleaning and repairs needed at return are charged at Owner's rates.
- Late return and default. If the equipment is not returned when due, rent continues until Owner has it back. If Renter breaks this agreement, Owner may end the rental and recover the equipment.
- Indemnity. Renter will cover Owner for claims that arise from Renter's use of the equipment, except claims caused by Owner's own negligence or by a defect Owner knew about.
- Whole agreement. This document, with the details above and any terms written below, is the whole agreement. It is governed by the laws of the state named above, and any change must be in writing and signed by both sides.
Fill it in the right way
- Fill in both parties, the job site and the machine's make, model and serial number.
- Write the rates and the hours each period includes, and the overtime rate per hour.
- At checkout, read the hour meter and fuel level together with the renter and write them down.
- Walk around the machine with the renter, tick the condition checklist and take photos of any existing damage.
- Both sides sign, and each keeps a copy. At return, read the meter again and compare the condition.
Tips
- Photos with a date stamp at checkout settle most damage disputes before they start.
- Write the included hours on every agreement, even if they never change: overtime you didn't agree in writing is hard to bill.
- Ask for the certificate of insurance before the machine leaves the yard, not after.
- Keep the signed agreement with the invoice, so the meter readings and the bill can be checked together.
Do it in FleetZap
- Reserve, check out and check in machines on one rental board.
- Bill per started day, week or month, with overtime above the included hours worked out from the hour meter.
- Record the return inspection with photos on a phone.
- Send invoices with online card payment, synced to QuickBooks Online.
- Give each customer a portal to see their rentals and invoices.
FleetZap Rentals
Reservations, rental billing and a customer portal. Explore FleetZap Rentals.
Frequently asked questions
What should an equipment rental agreement include?
The owner and renter, the machine and its serial number, the rental period, the rates and the hours each period includes, overtime, the deposit, who pays for fuel, damage and loss, insurance, the return condition, what happens on late return, and both signatures.
Who is responsible for damage to rented equipment?
Under most rental agreements the renter is responsible for loss, theft and damage other than normal wear from checkout until the owner has the machine back. That is why the condition at checkout is recorded and photographed.
How is overtime billed on an equipment rental?
Each rental period includes a set number of hours, often 8 a day, 40 a week and 160 to 176 a month. Hours above that, read from the hour meter at checkout and return, are billed at an overtime rate, often half the hourly equivalent of the period rate.
Is this equipment rental agreement legally binding?
A signed agreement is a contract, but rules differ from state to state. Use this template as a starting point and have a lawyer review it before you rely on it.