When setting up an event equipment rental business, it is important to establish a solid rental contract that can be used to protect your equipment and your customers. A good rental contract will include restrictions on use, as well as equipment return policies.
You should include a section that establishes penalties for equipment that is damaged during the rental period, as well as a statement that indicates your company’s responsibility for ensuring the maintenance of all rental equipment. In addition, make sure to review party equipment rental contract examples when designing your own.
What Should Be Included in a Party Rental Contract?
An event equipment rental contract should include several specific items to establish an understanding between the company and the client. The agreement and its terms should be clear to both parties. Common items included in a party equipment rental contract example include:
- Personal details of the owner and the renter
- Details of the event, such as dates and location
- Dates the equipment is to be rented for
- Any restrictions on the use of the equipment
- How the equipment is to be returned to the rental company
The event equipment rental contract spells out the agreement between the company and its customer, so both parties should have a full understanding of its terms.
Party Rental Agreement
The introduction of a party rental agreement should define who the contract is between. It should set out the introduction to the contract, establishing that the agreement is for the rental of party equipment.
Every introduction should also set out clear definitions of terms used within the agreement. Common terms include ‘Agreement,’ ‘Company,’ ‘Renter’, ‘Rental Items,’ and ‘Event.’ However, there may be other terms that should be included as well.
The parties section includes all of the identifying details of the renter and the company. Common details consist of names, addresses, phone numbers, email addresses, and any other relevant information.
This section essentially describes who is taking responsibility for the contract, as well as their full details.
The Rental Information section defines the details of the event that the equipment is being used for. In a party equipment rental contract example, this may include the date of the event, type of party, and the number of people expected. It should also indicate the location of the party.
Items Included in Rental
The list of items that are to be rented by the customer should be included in the list of party rental equipment. Common party items that are rented by event equipment rental companies include:
- Chair covers
- Dishes, cutlery, and glassware
- Sound system
- Heating and cooling
- Staging and flooring
- Generators and power
While these are common types of equipment rented during a party, every event is different. Some parties may require all of these, while others may include only a few.
Rental Rates and Fees
The rental rates and fees section of the event equipment agreement should establish a clear definition of the rental costs of each item for the party.
Each equipment item should be clearly defined, as well as the quantity of each. A price should be indicated for each component. The price may be charged by the day or for a certain number of hours.
The agreement should also include a section for damaged, missing, or late equipment return fees. By including these amounts, the company will have the right to collect them should any of the equipment be damaged, lost, or otherwise abused.
A cancellation policy should be included in the equipment rental agreement. This part of the contract should indicate the fees that will be charged to the customer should they decide to cancel their rental.
It should also indicate any extenuating circumstances that will result in the waiver of such fees, such as new COVID-19 restrictions or a natural disaster.
Common policies include 50% of the contract price if an event equipment rental contract is canceled within a certain period, such as a week. 100% of the entire contract may be requested for event equipment rentals that are canceled in a shorter time frame.
Typically, equipment rental contracts will require payment of rental fees in cash, by check, or by using a credit or debit card.
Some companies will need repayment in full prior to the event, while others will require an initial deposit and payment after the event. The company should decide upon the payment arrangements that it is most comfortable with.
In addition to covering how payments will be made, a list of fees associated with the rental should be included. Common fees included in party equipment rental contracts include:
- Cleaning of any items rented
- Assembly of event equipment
- Disassembly of event equipment
- Fees for missing items that are unreturned
- Damage fees
It’s important to make sure that all fees are properly indicated within the contract. There should be no room for misunderstandings on fees and payments.
In Witness Whereof
The final part of the agreement will include the signatures of the owner as well as the renters. The date of the signing should also be indicated.
There are many sample event rental contracts available that can be located online. You can also work with a legal advisor to develop a contract that covers all of the bases and ensures that both you and your customer are protected.
At a minimum, your contract should include information related to the equipment that is being rented, as well as the pricing details.
It should also discuss related fees, the dates that the equipment is being rented for, and the parties to the agreement. To ensure that the contract is valid, signatures on behalf of the renter and the rental company should be obtained.
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