In most cases, travelling is synonymous to automobiles. A cross country adventure is never complete without a memorable road trip of travelling through towns, breathtaking ocean views, picture-worthy sceneries, and a pleasant stopover at a famous deli. Unlike your suitcases, it’s not easy to get your vehicle past airports and boundaries. Before you hop off to a wonderful adventure, make sure that you’ve signed a reliable and accurate car rental agreement. A well-structured auto lease agreement ensures that the agency is providing its clients with the best car hire experience and protects the rental company from unscrupulous renters who might cost their business trouble. Needless to say, it’s a staple for every vehicle rental industry.
A car rental agreement contains the agreed terms between a rental agency or the vehicle owner and the renter regarding the leasing of a vehicle unit. It outlines all responsibilities a renter must observe while using the unit and the incurring charges when a violation occurs.
In the United States, the car rental industry grossed a revenue of approximately $16 million with an expected annual growth of 16.3%. It’s a lucrative business venture, but its success wouldn’t be possible without a good transaction process between renters and rental owners, and only the best car rental agreement can do that. Learn how to make your own vehicle lease agreement with the following steps:
Renting a mobile can prove to be a challenge because unlike real estate leasing agreements, it’s in motion. Your renter can bring it to a specific destination away from your vicinity. When there’s a presence of rogue intentions, it’d be easier to execute illegal activities or to hide damages. This is why it’s essential to include a detailed description of the rented model on your rental car agreement’s fill in the blanks of a rent a car form. Include not only the model type and brand but also the unit’s color, registration number, and even the condition. This is not to doubt your every client’s move but to check if the right model has been rented and returned in the right shape. This is also to distinguish the car from all other vehicles in the rental shop.
It’s imperative that you should include payment terms on your rental agreement to let your clients be aware of their compensation and financial obligations. Include the exact amount per mileage and the additional charges when it exceeds the location limit. It’s also vital to include fuel requirements and when the rental company expects the pay to come in or the payment schedule. Another important thing to discuss on your payment terms is the security deposit. Security deposit is a necessary payment in case a loss or damage happens to the vehicle. If no unfortunate circumstance arises, the renter can get the deposit after the lease period. If the opposite occurs, the security deposit can cover the expenses, and the renter will have to pay additional charges of the loss or damage exceeds the amount deposited.
Your agreement shouldn’t only clarify all terms pertinent to your leasing transaction, but it should also protect you from rogue transactions. This is why you should put in protective clauses on your rental contract. An example of that is the indemnification clause. The indemnification clause declares the business or the vehicle rental owner not guilty in case the renter gets involved with traffic violations and illegal activities while operating the unit during the leasing period. To prevent a renter from blaming the rental company of any concealed damage that might occur during the operation of the car, the owner should include a warrant stating that the owner knows that the is in stellar condition. Any damage that may occur during its use is not the rental company’s doing.
This is not possible in most cases because you’ll have to depend on the available car models that your rental agency has.
In the US, you have to be at least 21 to rent a vehicle.
Yes, most companies in the US provide a GPS upon the renter’s request.
Whether you’re a renter or a rental operator, it’s important to clear out any underlying questions and layout all terms regarding your transaction before getting any paperwork signed. Oftentimes, poor agreement management leads to complications that can take up too much energy and resources. Settle your transaction with a professionally-made car rental agreement from our collection. They are all customized according to your varying needs. Download now!