Anyone that wishes to rent out equipment should ensure there will be room in the market they are looking to enter. If they are entering a heavily saturated market, they need to offer their rentals with a different approach, such as offering a low-cost alternative, high-end equipment, long-term rentals, and so on. Any gaps in the market can be effectively marketed to capture customers that other companies in the area aren’t reaching.

Equipment can be purchased new or used. Depending on the type of equipment, the owner may need to finance it or start out with a few major products.

Once the rental business has been established, owners commonly obtain more rarely used equipment to complete their offering.

To attract potential customers, the owner can use a number of different marketing tactics.

• Social media – With over 2.6 billion monthly active users, Facebook is a great website for creating a business page.
• Network – Looking into the local chamber of commerce is a great way to learn about new and established businesses that may need rentals.
• List it online – Equipment rental platforms such as EquipmentShare offer an easy means of reaching a wide range of potential customers.

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An equipment lease agreement keeps all of the parties on the same page in regard to the length of the lease, what the renter has to pay to the owner for use of the equipment, what the renter can use the equipment for, and more.

Once the form is drafted it can be reused for each customer, with only minimal edits needed.

In between renters, the equipment should be serviced with clear-cut maintenance schedules. This is especially important for high-value rentals.

The most cost-effective way is to replace the part even if it doesn’t show obvious signs of wear. This helps to avoid making repairs in the middle of a leasing period.

Start by entering the date on which the parties are officially entering into the equipment lease. Write the full name of the person or company leasing the equipment, followed by the name of the lessee, which is the person/company renting the equipment.

List the type of equipment that the lessee is renting. This can be one or more items. Try and describe the equipment in as much detail as possible, including any serial numbers, VINs, or other identifying features.

This section specifies how long the lessee has to use the equipment. This is also how long the lessee will be required to make payments on the equipment.

On the first line enter the amount of rent the lessee will be required to pay each month. Then, enter the full address to which the lessee should deliver/send payments.

Specify the number of days (after the due date) the lessee has to make the rent until a late fee will be charged. Then, specify the dollar amount of the late fee.

A security deposit is a payment made upfront by the lessee that is used to cover any damage caused to the rental. If the lessee returns the equipment in the condition is was initially received (not including normal wear), the lessor is required to reimburse the security deposit. Note: If the lessee causes more damage to the equipment than what the deposit covers, the lessee can be held liable to pay for all additional damage expenses.

If the lessor will be delivering and picking up the equipment rental, check the “SHALL NOT” box. If the responsibility will be on the lessee for picking up and returning the rental, check the “SHALL” box.

The lessor should state the general permitted use of the equipment on the lines provided. It is recommended that they include additional attachments on the proper care/use of the rental. This is especially important for more expensive pieces of machinery.

Write the name of the state in which the equipment was rented.

Write the mailing address of both parties. This is used if either party needs to send a notice to the other (such as terminating the agreement).

If there are any additional terms and conditions to the agreement, they should be written on the lines provided. Otherwise, write “none” in the space.

Write the date on which the parties will be signing the agreement. This is the date the contract will officially go into effect. Then, both parties will need to provide the following information:

• Signatures
• Dates they signed
• Printed names (in full)
• Company positions (if any)

While optional, it is recommended that the lessor includes a means of contact (name, phone number, and email address) for the lessee if they have any questions or concerns during the lease. This can be the lessor or another person within the company.