When you rent out equipment to customers, you’ll need an equipment rental Terms & Conditions agreement for them to sign.

A Terms & Conditions agreement constitutes a legally binding contract, so it’s important that you make sure that it includes the right information, in the right language. If it’s not written and worded correctly, you could end up having to go through formal litigation in the event of a dispute with a customer.

Here’s what you’ll need to include in a Terms & Conditions agreement for equipment rentals – the types of clauses involved, what they mean, and how they help protect your rental business and your equipment

Since Terms & Conditions agreements are important legal documents that need to be written in the right kind of legalese, we recommend consulting with a contract lawyer to have yours created.

What to Include in The Terms & Conditions for Your Equipment Rentals

The terms and conditions agreement for an equipment rental contract should include certain kinds of clauses, so that you can cover all of your bases and make sure that everything is clearly outlined and delineated in the document. 

The clauses and information that you need to include here will help protect your business and property in case your  equipment is damaged or lost, if a customer defaults on payments, or if things otherwise go wrong. 

You’ll definitely make sure that you include the following information in your Terms & Conditions agreements:

• Indemnification clause
• Rental period
• Stipulations for the use of the equipment
• Loss or damage clause
• Transportation stipulations
• Information about your insurance coverage and warranties for the equipment
• Event of default clause

Here’s some more information about each necessary section.

What to Include in Your Terms & Conditions Agreement for Equipment Rentals

The terms and conditions agreement for an equipment rental contract should include certain kinds of clauses, so that you can cover all of your bases and make sure that everything is clearly outlined and delineated in the document. 

The clauses and information that you need to include here will help protect your business and property in case your  equipment is damaged or lost, if a customer defaults on payments, or if things otherwise go wrong. 

You’ll definitely make sure that you include the following information in your Terms & Conditions agreements:

• Indemnification clause
• Rental period
• Stipulations for the use of the equipment
• Loss or damage clause
• Transportation stipulations
• Information about your insurance coverage and warranties for the equipment
• Event of default clause

Here’s some more information about each necessary section.

Indemnification Clause

In commercial contact agreements, an indemnity clause helps determine where the risk involved in the agreement is allocated between the two parties involved. 

The term “indemnification,” also referred to as “indemnity,” refers to when one party involved in a contract compensates the other party for costs and expenses. 

In the case of a rental equipment terms and conditions agreement, this covers what’s known as “direct claims.” That just means that the claim is made by one of the two parties against the other. For example, if a customer damages your equipment by using it in an irresponsible way that’s forbidden by the contract, they’d have to compensate you for the associated costs.

Here’s a quick overview of the typical components of an indemnification clause that would apply for an equipment rental Terms & Conditions agreement. If you want a more in-depth explanation, we highly recommend checking out this comprehensive breakdown from Thompson-Reuters, a world-renowned data firm that works closely with law firms, corporate legal departments, and governmental regulators.

• Obligation to indemnify. This requires the customer to reimburse you for specified costs and expenses.
• “Hold harmless” provisions. The language used in indemnification clauses in typical contracts, like your own T&C agreement, requires the indemnifying customer – which, in this case, is the customer who’s renting from you – to “identify and hold harmless” the “indemified party” (which is you). 
• Recoverable damages. This defines what kinds of damages are covered by the indemnification clause – the cases where the renter needs to pay you back.

Rental Period

This section just specifies how long the renter has agreed to rent the equipment from you, and when they need to return it.

Use of Equipment

This section outlines how the renter is allowed to use your equipment. It’s meant to prevent them from using it in irresponsible or inappropriate ways that could lead to damage or losses.

Loss or Damage Clause

This clause specifies what happens if the customer loses or damages your equipment during the rental period. It says that the customer is agreeing to assume this risk and responsibility.

Transportation Information

This specifies how and when the equipment is permitted to be transported.

Insurance and Warranty Information

This section provides some information about what kinds of damage your insurance, and any applicable warranties on your equipment, will cover.

Event of Default Clause

An event of a default clause is a must-have in a commercial contract like a T&C agreement. It specifies what happens when one party fails to uphold their end of the agreed-upon deal.

In this case, it allows you to terminate the agreement, declaring all outstanding amounts owed immediately due and payable, in the event of a breach of contract on the renter’s part.

Simplify Your Rental Business Management with Quipli

Quipli makes it easy to manage multiple aspects of your business from one convenient, user-friendly software platform. It’s a great solution for handling inventory management, your online storefront, and more.

Explore additional helpful resources like our equipment purchase agreement template or our equipment rental form excel template.

Hit the button below to book your demo today and find out more about what Quipli can do for you!

Learn About Quipli’s rental Software

When you’re running an equipment rental business, inventory management is a central aspect. Having a good system in place is crucial to keeping everything running smoothly.

There are a number of different options for rental inventory tracking, from old fashioned paper records, to dedicated rental business software solutions like Quipli.

If you don’t have an inventory tracking system in place yet, using Excel or Google Sheets can be a great low-cost, yet effective, solution.

We’ve created a free rental inventory tracker template for Excel and Google Sheets, which you can use to keep track of the status of your rental equipment.

Download Our Free Equipment Rental Spreadsheet Template

We’ve put together a free downloadable Excel and Google Sheets template for inventory tracking. Just hit the link below to download it, so you can start using it today!

need better inventory tracking? click here to download our free spreadsheet template

Why Inventory Management is Crucial to Your Business

If you’re renting out equipment, you absolutely need to keep track of the status of each item in your inventory – whether it’s currently being rented out, whether it’s been inspected or undergone maintenance prior to being rented out again, and ongoing trends in rental patterns over time. 

Using digital spreadsheets via Excel or Google Sheets makes it simply to update an item’s status, keeping everything up to date and accurate.

How to Track Your Rental Equipment Inventory with Google Sheets or Excel

Here’s how you can use our free equipment rental tracking spreadsheet template to keep tabs on rentals and equipment status.

Our spreadsheet contains five pages for tracking:

• Equipment
• Orders
• Top Customers
• Inventory Calendar
• Revenue Trend

1. Enter the equipment and its stock number into the Equipment sheet.

This sheet is for listing all of the assets from your equipment inventory. At the top, you can list the total number of items, the number rented, and the number left in stock.

For each item, you can specify:

• Daily Rental Rate
• Asset Name
• Asset Description
• Number of that item in the total inventory
• Number of items currently being rented out
• Number of items left in stock

This tab is for tracking your current inventory – what’s rented out and what’s available to be rented.

2. Input your contract rental orders into the Input Orders sheet.

For each rental contract, enter the details into the Input Orders tab in the spreadsheet. You’ll need to specify the following information:

• Order Number
• Order Total
• Order Date
• Asset Information
• Quantity Rented
• Date of Rental
• Return Date
• Customer Name
• Customer Address
• Customer Phone Number
• Customer Email

There’s also a Notes column for additional information about each rental.

3. Add each customer’s information into the Top Customers sheet to track and sort by total revenue.

The Top Customers sheet lets you keep tabs on which customers are generating the highest amounts of revenue.

4. Use the Inventory Calendar tab to track revenue over time for the various products you have available to rent.

In this tab, you can track price, inventory, and total revenue for your products, over monthly periods of time. You can view how many of an item are rented out, versus still in stock, for each day of a month, helping you pinpoint trends over time in rentals and revenue.

5. The Revenue Trends tab lets you plot and graph revenue over time, based on return dates.

You can enter the order totals for the day for each return date, generating a graph of daily revenues.

Learn How Equipped Saved 10 Hours a Month by Automating Inventory Management with Quipli

Read Our Case Study

Quipli Makes Rental Inventory Tracking Easier Than Ever

If you’re looking for more robust inventory tracking functionality and features, check out Quipli. Our inventory management software lets you view product categories, inventory calendars, product availability, and more, all in one centralized and user-friendly interface. You can also integrate your inventory tracking with your rental Point of Sale systems, data and analytics tracking, and customer-facing website.

Ready to get started? Reach out any time to book your demo with Quipli!

Looking for more useful templates to grow your business? Explore our equipment rental agreement form or our equipment rental terms and conditions form.

Learn About Quipli’s rental Software

The world is full of equipment that can be rented or sold to consumers or business interests, from medical and construction equipment to golf carts and water sports vehicles. Even dumpsters, scaffolding, and party equipment. 

As an entrepreneur, you can use your knowledge and interests to launch a business that offers equipment rental booking, outright sales, or both.

With that being said, when you sell equipment, you want to make sure everyone understands the terms associated with the transfer of ownership, especially since something like a medical ventilator machine could go for $30,000 to $50,000, while a Caterpillar Excavator could cost anywhere from about $100,000 to $850,000. 

These large sums are why you need an equipment sales contract in place. What are equipment purchase agreements, and what should you include in yours?

Free Downloadable Equipment Purchase Agreement Template

Need to create a standardized purchase agreement for selling used equipment? We’ve created a free downloadable PDF template you can start using today!

Need a rental purchase agreement? Click here to download your free template!

*Consult with your lawyer to ensure this template correctly applies to your location, county and contains the proper terms and conditions before use. 

What Are Equipment Purchase Agreements?

As a business owner, you’ll turn to all kinds of targeted software solutions to run your operation, from QuickBooks for managing your finances to Google Analytics for tracking the success of your online efforts and gaining insights that help you improve. 

You can also find a range of templates to help you do everything from sending out email blasts to creating professional invoices.

An equipment purchase agreement is a legal contract that spells out the terms of a sale, as agreed upon by the seller and the purchaser. It serves to protect both parties in different ways.

The agreement protects the seller from claims that the equipment is not what the buyer agreed to purchase. However, it also protects the buyer if they actually receive the wrong piece of equipment or the condition is not as stated. 

A proper equipment purchase agreement template will include everything you need to ensure that both parties understand the terms of a sale, but you may have to tweak it a bit to make it suit your particular needs.

Free Equipment Purchase Agreement Template

The easiest way to get started when it comes to making your own sales contract is with a simple equipment purchase agreement template. After all, why start from scratch when someone has already done the heavy lifting for you? 

Even if it’s not exactly what you need for your business, it acts as a blueprint from which you can create a customized contract.

What Should an Equipment Sales Contract Include?

If you’ve offered equipment rental for a while, you probably already have some idea of what should go into your equipment sales agreement template. However, since you’re not booking rentals temporarily but instead turning over equipment ownership outright, there will be a few differences. A standard sales contract should include:

• Names and contact information for all involved parties
• Description of the equipment
• Payment terms
• Delivery terms
• Warranties and guarantees

While you might choose to include additional information or terms, either as part of your regular contract or for individual sales, these elements are the basics that will serve to protect you in the event of a dispute after the fact.

Names and Contact Information for All Involved Parties

The legitimacy of contracts can turn on a misspelled name, so it’s really important to make sure you nail down the correct names and contact information for all parties involved in your equipment purchase agreement.

Description of the Equipment

A major part of equipment sales management is making sure everyone knows exactly what pieces are being purchased. A generic equipment name such as “ventilator,” “excavator,” or “jet ski” won’t do the trick. What information do you need to include in the equipment description portion of your contract?

Naturally, a basic equipment purchase agreement template won’t include the specifics, so for each individual sales contract, so prepare to fill in details like:

• Manufacturer
• Model name and/or number
• Serial number
• Visual description of the equipment

You might also include the condition of the equipment at the time of sale. This wording could include terms like “new,” “used,” “as is,” “excellent,” “good,” “fair,” or “poor.” If there are known issues, you may want to spell them out, so everyone is aware of what they’re agreeing to. This approach could help to prevent disputes and legal action later on.

Payment Terms

Before you jump right into scheduling delivery, you need to make sure the payment terms are understood by the purchaser. Payment terms are relatively simple to add to a contract. Include the total amount to be paid for the purchase, as well as acceptable forms of payment and the due date.

If you offer payment plans, you will have to stipulate them, as well as any penalties for late or missed payments. Don’t forget to include that the buyer is also responsible for sales tax or other taxes associated with the sale.

Need help nailing down your equipment pricing? Here’s a handy guide on rental equipment values.

Delivery Terms

Whether you offer delivery as part of the purchase price or you charge extra for this service, it’s best to include your terms as part of the equipment purchase agreement so the buyer knows what to expect. 

In some cases, you may expect the buyer to arrange for pick-up from a storage location. You can make any arrangements you like where equipment delivery is concerned. Just make sure the buyer is aware and agrees to your terms.

Warranties and Guarantees

Any time someone purchases an expensive piece of equipment, whether it’s for business or personal use, they’re going to want some kind of guarantee that it’s not going to fall apart or fail immediately. They’ll also want to make sure they’re not buying something that “fell off a truck.”

The average equipment sales contract template should include some standard language to the effect that you are the rightful owner of the equipment and that when it is delivered to the buyer, legal ownership will be transferred. 

It should also stipulate that the buyer agrees to take the equipment in its current condition and that the buyer indemnifies you against damages that may occur later.

If the equipment includes any transferrable manufacturer warranties or if you offer a warranty through your business, you should also include the information in the agreement.

Download SAMPLE PURCHASE AGREEMENT TEMPLATE

The Value of Equipment Purchase Agreements

Equipment purchase agreements are an important part of any business operation that sells new or used equipment. With careful planning and attention to detail, these documents help to protect both your company and your clients.

If you’re looking for a platform that gives you the tools to better manage rental business inventory, orders, and more, book a demo today to learn more about Quipli and what it can do for you.

Learn About Quipli’s rental Software