Car hire or car rental services are great ways to give individuals to have a vehicle that they need to use but couldn’t own one currently because their current situation does not allow them to have their own. If you own multiple cars and you want to earn extra income or you’re planning to open a car hire rental business, one of the things you need to prepare to give to your future clients, who will be interested in renting your cars is to create a rental agreement to ensure that they will take good care of your vehicles and to return them to you once the rental period is up in the same condition before the car was rented out. If you want to know how to make a car rental agreement that is simple to create, this article will guide you on how to make one. Keep reading the article below.
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What is a Car Rental Agreement?
A car rental agreement, also known as a vehicle rental agreement is a legal written document signed by a car rental company operator or sometimes a car owner and an individual who wants to use the car temporarily for a fee. The simple process of renting a car is the renter gets the keys to the car they’re renting and the car hire can get full access to the car for the period they are renting it.
Details to Include in a Car Rental Agreement
A car rental agreement must contain the following information:
- The names and contact details of the parties involved
- A description of the rented vehicle. It must include details such as its model, maker, year, color, vehicle identification number, etc. Don’t forget to disclose any existing damage in the car.
- The duration of the rental agreement. Include the start and end dates of the rental.
- Rental fees and the responsibilities of the parties.
- An odometer disclosure statement. The car owner must disclose the current mileage of the car in the agreement.
- Security. The agreement must include details regarding any repairs or replacements in the car parts. If those are needed, and the renter paid for those, the owner must reimburse the renter for all the expenses they’ve incurred.
- Insurance. The agreement should indicate who will be responsible for any insurance expenses in case of an accident that may occur.
- Indemnity. Include an indemnity statement where the renter will not let the owner be responsible for any unfortunate events that may happen such as legal suits, losses, or damages that as a result of the renter disobeying traffic rules, mishandling of the vehicle, careless driving, parking fees, or any other arising issues that might be brought to court.
- Warrant. The warrant should also state that the vehicle was in good condition at the time of rental and the renter agrees to operate the vehicle properly and the renter must return the vehicle in good condition and order.
It should also capture the state where legal suites shall be pursued in case such a need may arise and who will be responsible for paying any legal fees.
- Include signature lines. Conclude your agreement with spaces for signatures where both parties can sign and include the date of the signing.
What to check first in a car before renting it?
Before you go ahead and rent a car you want, you need to make sure they are in good working condition. To know that the car you’re renting is in tiptop shape, you need to inspect these parts:
- Spare wheel, in case, if your wheel accidentally bursts or gets punctured.
- Wheel spanner and jack to change wheels.
- Engine oil and brake fluid should be at the right levels.
- The cooling system should be supplied with water and coolant fluid.
- Wheels tread for the steering wheel to ensure you get a good grip when driving.
- Steering must be powered enough to drive comfortably.
What disqualifies someone from renting a car?
Not everyone gets the privilege to rent a car from car hire businesses. They screen a renter and see if they are responsible enough to take care of the car and return the car in one piece. Here are some reasons why a car hire company disqualifies someone from renting a car:
- Invalid license: If they see that a person’s license is not renewed, revoked, or suspended, the car hire will deny you their services.
- Reckless driving: If the company finds out you have a record of recklessly driving, the renter will likely be disqualified from renting a car.
- Accidents: The renter might also be disqualified if the company finds in your records that you were in several accident reports.
- Drunkenness and drug abuse: The company can flat out deny a renter’s request if they show up at the car rental intoxicated with either alcohol or with drugs.
Once you’re done writing the agreement, make sure to review it to see if there are any spelling or grammatical errors or wrong information in it and discuss it first with your client before you sign the agreement. To help you get started making the contract, download our free sample templates above to use as your guide!
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