Common Contracts

Equipment rental lease template

August 8th, 2022

• Filed
  August 8th, 2022

An equipment lease agreement enables businesses and individuals to rent machinery, tools, electronics, or equipment in exchange for periodic payments made to the owner. Rentals can be leased on a daily, weekly, monthly, and even yearly basis depending on the industry and type of equipment. What is an Equipment Lease? An equipment lease is a contract that outlines how an owner of equipment will rent it out to another person (the “renter” or “lessee”). In exchange for having the right to use the equipment, the renter makes consistent payments to the rental company. Renting equipment is popular in many industries as buying the equipment outright is very costly, especially if one only needs the equipment for a short period of time. In construction, a common rule is if equipment will be used less than 60-70% of the time, it makes more financial sense to rent instead of buy. While each industry has its own standards and “rules of thumb,” equipment rental serves an important role in allowing