How to Write an Equipment Lease
No matter if you are a lender or tenant, you need to have a written agreement to avoid any unforeseen trouble. If you are letting somebody use your equipment then it becomes more important to write a lease agreement so that you can claim in case of any damage or violation of the agreement.
Though, it is a complicated paper work but with little bit practice and knowledge anyone can go through this process without the help of a legal representative.
First of all you will have to clearly mention in the agreement that who is the other party. Usually, the following format is followed:
This is an agreement between [name of lessor] and [name of lessee] according to which the former will lease [mention equipment] to the latter.
After mentioning the owner and renter, you will describe the equipment in the following manner.
[Name of the owner] is allowing [name of the lessee], and [name of the lessee] is acquiring from [name of the owner] the following described equipment [give complete details of your equipment]
Now you will write down the terms and conditions. That includes the date of beginning of deal and the date when it ends. You may use the following sample.
The lease will start from [date] and it will remain valid till [put the relevant date].
If you are willing to transport the equipment to other party’s premises then simply mention it otherwise let the lessee take your equipment to his place.
Now you can mention the monthly rent. You should clearly state that the renter is responsible to pay rent well in advance. You may add some penalty in case of any delay. Following sample can help you.
The monthly rent shall be paid in advance, starting from [relevant date] and on the first day of every month.
Your next step should be to mention fair usage policy as it will be helpful for you to claim the damages. Similarly, do not forget to mention that repairing is the responsibility of the lessee.
You should clearly state that lessee is responsible to return the equipment in same condition as it was at the time of agreement.
Include ownership rights. Do not forget to mention that the equipment is and will remain the sole property of the lessor and lessee shall have no right to make deals over this equipment.
In the end you should add a statement that both parties have read the agreement thoroughly and it will not change after it is signed.