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

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!

*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.

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.

Equipment rental receipts and invoices are two key documents for your customers. Receipts are usually provided when your customer pays for their rental, while invoices are used when you agree to bill them for a rental, allowing them to pay later. 

Both include key information, however, such as details of the equipment rented, the length of the rental, itemized rental rates, and the total cost.

What to Include in Your Rental Invoices & Receipts

As mentioned, each rental invoice or receipt you create should contain essential information, including your company name and contact information, as well as the customer name and contact information. In addition, you’ll want to include a thorough analysis of the rented supplies, detailing the make and model of the equipment and a breakdown of the amount due.

If multiple pieces of equipment are rented, or if there are other items purchased, such as consumables like water or cleaning fluid, each will have its own line in the invoice or receipt. 

For an equipment rental receipt, you’ll include the amount paid and the payment method used (credit card or check). For invoices, you’ll include a due date for the amount owed and how the customer can pay. You can provide a link for credit card checkout or a mailing address if they choose to remit a paper check. 

You’ll also want to provide any other relevant information for the order, such as the purchase order number. Make sure to print the due date on the invoice as well to clear up any confusion and prevent issues. For example, an invoice created on Jan. 1, 2023, with “due in 30 days” terms means you’d arrange a due date of Jan. 31, 2023. 

Should You Offer Invoicing for Your Rentals?  

Generally speaking, equipment rental invoices or receipts are provided to a customer renting your equipment. 

Equipment rental receipts are typically provided once a customer pays for the rental service. You can provide an equipment rental invoice at the time of rental, but they are commonly provided (either mailed or emailed) after the rental is completed. However, invoices may be sent intermittently (such as weekly) for long-term rentals.

Say you have an excavator that’s been rented out for six months, and your customer is a state agency that has asked to be billed instead of having to pay upfront. You agree to invoice them weekly, and so every Monday, you’ll send them an invoice for the previous week’s rental period costs. 

Send Out Invoices in a Timely Manner

Invoicing is a great way to get a leg up on the competition, extending credit to your customers. Though your cash inflows might be delayed, offering invoicing options signifies that you’ll open your business to more potential customers.

If your equipment rental company does decide to offer invoicing services, you’ll want to ensure you get them out promptly. Set a precise schedule for invoicing, such as the same day each week, as delays in getting invoices out correlate with payment delays.

On the other end, make sure the payment process is as easy as possible. Include information about how your customers can pay their invoices, such as a direct link to making credit card payments if you’re emailing invoices.

Getting invoices out on time is integral to managing the accounts-receivable process. Invoices are often reconciled with purchase orders and need authorization from various department heads, which can take time — another reason to get invoices out as soon as possible.

Additional reasons to be timely with invoicing include keeping your invoice amount smaller — which is more likely to be paid quickly. Multiple approvals might be needed for larger invoices, which can delay payment. 

As well, some larger customers may batch their payments, meaning you might miss a payment cycle if the invoice comes in later than expected. 

Consider Using an Automated Invoicing System

A good rule of thumb is to invoice your customer as soon as possible. In order to remain transparent and clear about your expectations, keep the time between when the rental was completed and when the invoice is sent to a minimum. 

Providing rental receipts or invoices for each transaction or customer can be cumbersome — not to mention time-consuming. Thankfully, there’s software that can streamline the process and generate customer invoices and statements automatically. This software can speed up the billing process and remove the need for physical paperwork.

Utilizing invoicing software also means you’ll get your invoice in the hands of your customers sooner, and the quicker you get your invoices out, the faster you’ll get paid. Payment delays mean less cash inflow for you, leading to missed opportunities or additional interest spent on financed equipment. 

Free Equipment Rental Invoice Template

See below for a free equipment rental invoice template that you can use for any type of rental, such as farming, construction, or cleaning equipment. 

A suitable equipment rental invoice like the one below will contain details about the customer’s rental and an itemized breakdown of the costs. It’ll benefit both parties even further if it’s delivered automatically. 

Simplify Payments, Invoicing and Accounting With Quipli

Quipli is the all-in-one solution for rental businesses. Integrate your website builder, inventory management, scheduling, pricing, customer pick-up and invoicing all with Quipli. 

If you’re interested in finding out what Quipli can do for your rental business, book a 15-minute demo with our team today.

The construction industry has been burgeoning in recent years, and the United States Census Bureau reported that construction value in the United States reached a new all-time high in 2022, surpassing $1.7 trillion. This growth is expected to continue.

As the construction sector continues to expand, so does the demand for construction equipment. Many businesses have turned to renting vehicles instead of purchasing them outright to meet this demand.

Renting equipment can be a fantastic way to save money and avoid the hassle of maintenance and repairs. Nevertheless, if you’re in the business of renting out construction vehicles, it’s important to have a solid rental agreement in place.

A well-crafted equipment rental agreement will help ensure that both parties are clear on the terms of the contract and can avoid any misunderstandings down the road. This article will go over some crucial points that should be included in your equipment rental checklist template.

Downloadable Equipment Checklist Template

Understandably, not everyone is familiar with drafting a rental agreement. To help you get started, we’ve created a downloadable equipment checklist template. This template includes all the key points that should be covered in your agreement and a few extra clauses that can be added depending on your specific needs.

So if you’re looking for a starting point, download our template and use it as a guide while drafting your agreement. It will help make sure that you don’t forget any important details.

Before we look at the checklist, let’s first go over inspecting the equipment.

Click here to download our free equipment checklist template pdf

When Should You Inspect Your Rental Equipment?

As an entrepreneur, your vehicles are one of your most important assets. Not only are they essential for getting the job done, but they also represent a significant investment. That’s why taking care of them and performing regular inspections is important.

Before renting out any of your vehicles, you should always perform a thorough inspection. This approach will ensure that the equipment is in good working condition and help you avoid costly repairs down the road.

Ideally, it would be best to scrutinize your vehicles before each rental. However, we understand that this isn’t always possible. If you can’t check the equipment before each rental, you should still try to do it at least once a week.

How often you inspect your vehicles will depend on several factors, such as how often they’re being used and how well they’re maintained. However, as a general rule, we recommend inspecting your equipment before and after each rental.

A partial inspection might also be a good idea to ensure that the equipment is still in good condition during long-term rentals.

Key Things to Include in an Equipment Rental Inspection Checklist

Having gone over when you should inspect your equipment, let’s now consider what you should include in your equipment inspection checklist. Please note that this isn’t an exhaustive list and that you may need to add or remove items depending on the type of vehicle you’re renting out.

1) Basic Inspection

Here’s a quick overview of the things you should check for during a basic inspection:

2) Tire Condition

Check the tread depth and search for any signs of damage. Any nails or other foreign objects should be removed. If the tread depth is less than 1/16 of an inch, you should replace the tires.

3) Vehicle Lights

The vehicle’s lights should be checked, including the headlights, taillights, turn signals, and brake lights. The last thing you want is for your renter to get pulled over because a light is out.

4) Undercarriage

You should check the undercarriage for any leaks, as well as any damage that could have been caused by rocks or other debris.

5) Hydraulics

Obviously, this inspection is only relevant if you rent a vehicle with hydraulic equipment, such as an excavator. You’ll want to check for leaks and ensure that all hoses are in good condition.

6) Brakes

The brakes are probably the most important of everything on this list. After all, they’re responsible for stopping the vehicle. You should check both the brake pads and the fluid level.

7) Lifts

These are another set of items that are only relevant if you’re renting out a vehicle with hydraulic equipment. You should check the fluid level and look for any leaks.

8) Engine Inspection

In addition to the basic inspection, you should also perform a more thorough examination of the engine. This inspection is particularly essential if you’re renting out a vehicle with hydraulic equipment, as such equipment puts a lot of strain on the engine.

9) Engine Oil

More often than not, you’ll be able to check the engine oil level without having to remove the dipstick. However, even if that’s not possible, you should add this examination to your checklist.

10) Spark Plugs

Spark plugs are easily one of the most vital engine components, as they’re responsible for igniting the air-fuel mixture. Yet, they’re often overlooked. Give them a check, and ensure they’re gapped properly.

11) Air Filters

The air filter keeps dirt and other pollutants out of the engine. Over time, it will get clogged and will need to be replaced.

12) Equipment Cab

This section is the final part of our list. If renting a vehicle with a cab, you should check to ensure that all the safety equipment is in good working condition. This equipment includes:

13) State of the Cab Interior

Considering the time your renter will spend in the cab, you should ensure it’s in good condition. Sports to check include the floor, the ceiling, and the walls. They should all be free of dirt, dust, and other debris.

14) Equipment Controls

Like the brakes, the controls are an extremely important safety feature. You should ensure that all the levers and switches are correctly positioned and labeled. They should also be within easy reach of the driver.15) 

15) Window Condition

A clear view is paramount for safe driving. As such, you should ensure that all windows are clean and free of any cracks or other damage. Any windows that are cracked or damaged should be replaced.

Strict scheduling can often be the factor that differentiates between a successful rental business and one that struggles. It allows you to avoid many common problems that rental firms face.

So use the template to create a setup that helps you manage your business more efficiently. And if you require a more comprehensive solution, consider using a software platform like Quipli.

An All-in-One Equipment Check Process

With so much planning and commitment going into your equipment rental business, you should implement the best possible inventory and reservation management system.

Quipli provides equipment rental software that integrates your inventory with online equipment scheduling software, along with other benefits. You can reach out to our team today to book a demo and find out what Quipli can do for your equipment rental business.

Looking for more ways to grow your business? Learn more about equipment values and how to keep track of rental equipment with Quipli.

Learn About Quipli’s rental Software

If you’re in the business of renting out heavy equipment, an inspection checklist will help you maintain your equipment in safe operating condition, which means saving money in the long run. When used properly and diligently, these checklists will protect your assets and add an extra layer of accountability to ensure your business continues to run smoothly. 

While your techs may inspect the obvious components like tires and lights, it’s important to take advantage of comprehensive checklists like our free version below so that no detail goes unchecked. After all, you owe it to your customers to provide safe equipment that functions as expected.

Free Heavy Equipment Inspection Checklist PDF

Relying on memory during an inspection is a great way to ensure that something ends up getting missed. On the other hand, a well-constructed heavy equipment inspection checklist is a solid tool to keep your inspections streamlined. 

Using an equipment inspection from PDF can further increase business efficiency since your techs can complete their inspections with a mobile device rather than constantly needing to print new paper forms.

So take the first step in safeguarding your business and assets today with our free checklist PDF.

If you choose to use it digitally, make sure you still print off a few copies to give to your rental customers. You can even include one in the cab of each piece of equipment for their convenience.

Another benefit of using a digital checklist is the ability to catalog inspections easily and share them with your team. This way, logs don’t go missing, and you can streamline the maintenance request process too.

Download Quipli’s Heavy Equipment Checklist PDF

Why You Need a Standardized Heavy Equipment Inspection Form

By using a standardized heavy equipment inspection form, you will not only make sure your equipment functions properly, but you will also help to increase the life of your equipment and ensure its operators remain safe. 

You also reduce the risk of your business facing liability for accidents that occur due to a lack of proper maintenance. 

Prevent Accidents from Occurring

According to the Bureau of Labor Statistics, the construction industry saw 1,008 fatal occupational injuries in 2020 alone. Heavy and civil engineering construction accounted for almost 200 of those deaths, while specialty trade contractors accounted for 576. 

If you rent heavy equipment, the good news is that you can make a difference and reduce the risk of similar injuries and deaths when your customers choose to work with you. Checking your equipment regularly will safeguard you and your customers and limit casualties.

Reduce Overall Maintenance and Repair Costs

Performing routine inspections with a comprehensive equipment inspection log will help to limit costly repairs. By meticulously following a rigorous checklist, you’ll be able to identify problems early on before they become major ones, keeping your repairs cost-effective.

Replacing a major piece of equipment, such as an excavator or crane, can cost tens to hundreds of thousands of dollars. And due to inflation and supply chain issues, heavy equipment is only getting more expensive. However, if you properly care for your assets, major capital expenditures can be kept to a minimum.

What Should a Heavy Equipment Inspection Checklist Include?

Every equipment inspection form should comprehensively cover the components needed to start and operate a piece of equipment. After all, most operators will know to check the obvious things like oil levels, but it’s easy to forget something as minor as battery levels without a proper list.

You’ll want to perform three separate checks to ensure your equipment is client-ready: pre-start, warm-up, and shutdown.

Your pre-start check should be the most comprehensive, as you can get under the hood safely to examine the engine. As such, you’ll want to spend most of your inspection time here. 

Next, you’ll want to perform a check once the equipment has had 5 to 10 minutes of warm-up time, allowing you to check for issues like leaks that weren’t apparent during the pre-start inspection. This is when you’ll want to check for anything that requires power, such as lights and brakes. 

Finally, your shutdown should cover three key things: fuel, engine, and safe parking. 

Here’s a more comprehensive look at what each stage should entail:

Pre-Start

Before starting the equipment, you’ll want to check all of the following: 

• Parking: Before you start, ensure that the equipment is securely parked
• Seat Belts: Make sure all belts extend and lock properly
• Fluids and Oil: Check levels
• Visible Leaks: Examine the ground under the equipment
• Undercarriage: Look for worn or broken parts
• Engine: Check hoses, valves, and belts
• Tires: Look for nails or punctures, and check pressure and tread level 
• Rims: Look for damage to the rims and loose nuts
• Gauges and Lights in the Interior Cab: Make sure they are in working order
• Battery: Check that the battery is charged and connected
• Suspension: Check for vibration or concerning noises 
• Fan Belts: Look for any splits or tearing on belts, and check tension levels 
• Cooling System: Look for leaks or damage
• Fuel system: Check the fuel level and look for leaks
• General Condition of Cab Interior: Including horn, mirrors, wipers, and seats

Warm-Up

After the equipment has had a chance to warm up for several minutes, check the following: 

• Horns
• Back-Up Alarms 
• Air Filters: Replace if needed
• Lights: Including brakes, headlights, reverse, turn, etc.
• Hydraulics and Fluid Levels 
• Brakes: Check for air and fluid leaks

Shutdown

When shutting down the equipment, make sure to check the following items: 

• Fuel Tank: Fill the tank and securely tighten the cap
• Engine: Let the engine idle for a few minutes before shutting off 
• Parking: Park the equipment in a safe location 

Keeping Your Equipment in Great Condition with the Right Tools and Partners

The bottom line is that regularly inspecting your equipment can help you avoid customer complaints, expensive repairs and fines, and serious injuries. But inspecting your assets is only one facet of running an equipment rental business.

Thankfully, saving money and keeping your business running smoothly is what the Quipli team specializes in. That’s why we’ve provided a free equipment checklist that will protect your employees and your customers. 

The Quipli platform can further streamline your equipment rental business with equipment scheduling software, equipment checkout software, and a inventory management system to seamlessly keep track of your rental inventory. Reach out for a demo to learn more today. 

Download Quipli’s Heavy Equipment Checklist PDF

A Rental Platform for All Kinds of Equipment

No matter what your most rented piece of equipment is, Quipli provides an all-in-one system that combines an innovative inventory management and reservation system, rental website builder, Point Of Sale Software, and built-in reporting you need to make running your business that much easier.

Quipli’s equipment rental software will streamline your equipment rental business. Reach out for a demo to learn more today. 

Learn About Quipli’s rental Software