What Exactly is a Trailer Rental Agreement?

A trailer rental agreement is a document that clearly establishes the relationship between a trailer renter and a trailer renting company. It helps both parties understand their obligations to one another, including what their rights and responsibilities are. Without this document, misunderstandings can often result between renters and trailer renting companies.
Basic terms that are commonly used in trailer rental agreements include identifying the trailer or trailers, describing the fees , outlining the duration of the rental agreement, and more. The people involved in trailer rental transactions include the renter, who is the individual who will be renting the trailer from a trailer renting company; the rental company, which is the company providing the trailer or trailers to a renter; and the lessor, which is the company or person leasing the trailer or trailers to a renter.
An example of a trailer rental agreement form, for which there is no standard design, is included with this article.

Essentials to a Trailer Rental Agreement

The rental agreement for leasing a trailer should generally specify the following items:
TRAISG 1. Identification – The trailer leased should be identified by its vehicle identification number (VIN or serial number), physical description, and the address of the location where the trailer is kept.
TRAISG 2. Lease Term – The term of the lease is to be indicated, whether for a specified period of time, or month to month, or an indefinite period. If for a specified period of time, then specify the start date and end date. If there is a grace period for return of the trailer, such as 48 hours, specify that in the lease.
TRAISG 3. Rental Payments – Specify amount due each time period prior to rental, the date when rent is due, the place where the rent can be paid, and the method of payment (by mail, in person, or electronic transfer). Generally, the net amount should be indicated before the addition of taxes, fees, or service charges. In addition, specify penalties for late payments or early termination of the rental agreement. State if there is an interest charge on unpaid balances after a specified date.
TRAISG 4. Terms of Use – Specify where the trailer may or may not be used, if it may be used away from the trailer lot, and if it is permitted to be used in conjunction with the operations of a business. Indicate how the trailer is to be kept, such as kept locked and the trailer empty when not in use. Indicate whether it may be used for more than one person or purpose. Specify if it may be loaned, rented, leased, or assigned to a third party. State if the trailer is to be picked up at the vendor’s facility and whether such pickups are on weekends. Indicate if the trailer may be driven away from the facility empty to be filled elsewhere, and whether it can be filled with other than those materials that are the same as the trailer’s rated capacity.
TRAISG 5. Inspection/Condition – State if there are any restrictions on the condition of the trailer upon return, such as free of debris, clean, everything working, etc.
TRAISG 6. Damage – State if the company wants the customer to return the trailer in the same condition as when it was rented. If so, whether the customer is required to return the trailer with a full tank of gas.
TRAISG 7. Insurance/Indemnity – The rental form should indicate whether or not insurance is available to cover damage to the trailer while in the customer’s possession, whether or not azers will be held harmless against an accident involving the trailer, and if so, whether the customer waives all claims against the company in favor of an insurance carrier.
To supplement the rental agreement, the company may provide customers with a separate indemnification/additional insured form.

Completing a Trailer Rental Agreement

Filling out a trailer rental contract form accurately and completely is crucial to avoid misunderstandings. The trailer rental agreement form for a cargo trailer rental is very simple, consisting primarily of fill-in-the-blank information. This agreement generally takes the form of a one-page document. Simply: 1) Fill in your name, address, phone number (and email, if applicable), then the names of your payments, as well as their addresses and phone numbers; 2) Provide driver’s license, social security number, and insurance info for each person listed in Step 1; 3) List the type and size of trailer desired to rent, the rental rate, pick-up location, the amount you are putting as a security deposit, amount of insurance deductible, and number of hours you might need the trailer for; 4) Sign and date the front page; 5) Fill out the back page, which is your agreement to return the trailer safely and at the designated time; 6) Initial the back page right where it indicates "Initial Here" at the bottom of the page; and 7) Return the completed form to the rental company. Read the entire form carefully. Make sure there are no blanks for any of the fields requested. Fill in all spaces. Be honest when filling it out. Do not supply false information or omit material information. This could cause problems later between you and the rental company, in case something goes wrong with the safety and suitability of the trailer. If there are questions on who the agreement should be made with, make sure to clarify and get agreement and approval from the rental company before you sign the agreement. Make sure that the rental trailer that you get is suitable for your needs. Bring the completed agreement to the rental company and pay the deposit and payment for the period you intend to use the trailer.

Legal Matters in Trailers Rentals

When renting a trailer, legal considerations are integral to ensuring you have a hassle-free experience. Liability issues arise when dealing with insurance coverage, damage of goods in transit, and accidents in general. When you rent a trailer to haul cargo, you don’t need added stress in case something goes wrong.
Protection against undue liability is a must when renting a trailer. You don’t want to pay for the other person’s mistakes. Whether you’re hauling home appliances or automobiles, having the right trailer rental insurance coverage makes sense. That can mean choosing between insurance policies provided by the rental company or purchasing your own insurance coverage.
Liability Coverage: The provided insurance policy covers claims arising out of the trailer rental resulting in property damage or a bodily injury to a third-party. With bodily injuries, the insurance will cover the injured party’s medical bills and lost wages as well as the injured party’s pain and suffering. With property damage liability coverage, the insurance policy will provide coverage for damage to another person’s property that is deemed to be the fault of the insured.
The rental company won’t be liable for damage to personal property caused while using the rented trailer. For instance, if you are transporting batteries and they leak corrosive material onto the carpet of the trailer, you’re responsible for cleaning it up and for damages incurred as a result of the damage. If you purchased the trailer rental insurance, you may be covered under the terms and conditions of the insurance contract.
If your automobile insurance does not extend to rented trailers, you should consider the supplemental liability policy provided by the rental company.
When loading clothing, electronics, and other personal items into a trailer, or adding personal items to an already loaded trailer, personal effects insurance provides coverage for any loss or damage that may occur to the items in transit.
Trailer rental companies may also offer or require the purchase of cargo protection insurance. This insurance protects against loss or damage to the cargo being transported.

Advantages of Using Standard Rental Forms

Standardized trailer rental agreement forms play an essential role in ensuring that all parties to the lease understand their rights and obligations under the contract. Where possible, trailer rental agreements should, to the extent practicable, be standardized across all transactions to ensure complete transparency of the terms on which the parties have agreed to transact. Given the lack of regulations relating to property leased in the transportation industry, trailer rental forms provide the opportunity for the parties to delineate their respective rights and obligations. This affords all parties an opportunity to understand how they are expected to conduct themselves in the performance of their obligations under the lease. As such, standardized rental forms provide certainty that everyone, including lessors, lessees, and third parties, all have clarity as to the expectations and governing terms and conditions of the lease. Standardized rental forms can be used to create uniformity across multiple transactions. For example, if a fleet company has multiple heavy bank trailers and they are leasing them all to one sole lessor, the company can utilize the same form of rental agreement to ensure that uniformity exists when interchanging information and contacts for the trailer(s) at the end of the term or during the term. It also reduces discrepancies regarding the amount payable under the lease and which party is responsible for any damages or maintenance costs during the term. Further, standardized trailer rental agreement forms can assist companies in streamlining their administrative processes and cut costs. If a company uses the same form of rental agreement for each transaction, it only needs to save the template in its repository. The leasing company only needs to keep the rental form as a PDF on its computer and does not have to print off new copies for each transaction. By saving these forms in a central repository , the parties save on time and money that would otherwise be spent preparing the documentation from scratch for every transaction. Standardized trailer rental agreement forms can assist in avoiding disputes between the parties and can also provide the parties with potential workarounds to predetermine how disputes should be resolved. Although the general law provides the framework in which the parties operate and will settle a dispute, sometimes further clarity is required when specific issues arise. In particular, the parties are encouraged to provide additional clauses to their rental agreements. For example, if the lessee has exclusive possession of the property, a regime should be provided for maintenance, repair, or additional provisions as to the return of the property at the end of the lease period. However, the use of a rental agreement form whereby the lessor requires a lessee to provide a security deposit as collateral in case of default in payment (or as prepayment) raises its own challenges. In BOE Bank of Africa Ltd v Mann; 2004(6) SA 27 (SCA), for example, the court was faced with a clause in a rental agreement that expressly gave the lessor a lien over the movable property in the event of the lessee’s default. The lessor had argued that this right was tantamount to that of a prohibited pledge. The Supreme Court of Appeal found that what had been created by the agreement was a pledge of a movable thing in the possession of the pledgor as security for the due performance of an obligation. The Court further concluded that the lessor had to exercise its right over the movables within 30 days upon acquiring possession, failing which the right would lapse. This case confirmed that the lessor does not have an indefinite right to exercise a lien over the movable property. Otherwise, it would be tantamount to a pledge without the other formalities being complied with.

Source of Trailer Rental Agreement Forms

Businesses and individuals looking to hire or lease a trailer for transportation or storage can find a variety of trailer rental agreement forms on the Internet. There are two main types of sources for these forms. The first are free online form sources. The second type are fee-based services that provide more support and can help the individual customizing the form in a manner specific to their needs and the laws of their applicable jurisdiction.
Free Online Sources:
There are a number of websites where free legal forms are available to download and customize. These forms are often provided by lawyers who have a large variety of legal templates available to fill out in a fillable PDF format. These forms are usually designed for individual use. A more recent development is form builders that help customize a formal agreement. However, most are limited by the laws of whichever US state you are in. If you want a free form for your use only, Legal Templates are usually US state specific.
Fee-Based Online Sources:
These sources usually have a completely guided experience through the process of creating a custom trailer rental agreement. These forms are often guided and get more specific about the requirements and restrictions of each US state. They are useful for both individuals seeking trailer rentals and businesses who frequently rent trailers.

Modifying Your Trailer Rental Agreement

Customizing your Trailer Rental Agreement
Scenario 1: You’re renting out your trailer for the first time. You want to ensure that all 50 states agree to your rental terms and conditions. The most prudent course of action is to reach out to legal counsel to discuss a trailer rental agreement form that is the most likely to be enforced.
Scenario 2: You’ve rented out your trailer five times this summer and you scrawled your agreement on the back of a napkin each time. You feel like that was sloppy and you want something that looks more official. Do you really need an attorney to prepare a trailer rental agreement for you? You can do this yourself rather easily without the need to contact legal counsel.
Scenario 3: You rent out your trailer several times each summer and you use the same agreement ten times. However, you use a different agreement every time you rent out your home to a vacationer on Airbnb. Would it make sense to use the same trailer rental agreement for your trailer rental as you do for your vacation home? Or does that not make much sense? In this scenario, you want to have counsel draft your trailer rental agreement. You have mastered the art of combining several different agreements into one. You are, indeed, the Mozart of agreements.
Scenario 4: You come to me and say, "Danielle, please take my money and draft an all-purpose rental trailer agreement for my company that will be perfect for 100% of the transactions I’m going to complete." At that point, I will tell you that you’re crazy. I will also tell you that there is no way that I could even begin to generalize the requirements of both parties in the many different states where your transaction could possibly occur.
Whether your agreement is booked out on Airbnb or used in different states , it needs to be customized to the state where the trailer is located. When entering into an agreement with a customer, the terms will vary based on the location of the trailer, especially when injury claims arise. There are many different rules regarding liability, damages, warranties, and trucking regulations in each state.

  • Customize the Trailer Rental Agreement. It may be worth your while to have an attorney review your trailer rental contract and provide advice about which terms you should apply in different states.
  • Limit Your Liability. You may choose to limit your company’s liability in your trailer rental agreement. At the same time, you may also choose to limit the ability of customers to seek damages from your company. But, if you use a particular contract with an individual that you believe is an independent contractor, then you cannot simply state, in your contract, that the individual is a contractor if he or she meets the definition of "employee" under federal law.
  • Anticipate and Avoid Consequences. Make sure that you amend your trailer rental agreement to reflect the degree of control you maintain over your trailer and the circumstances surrounding its rental, you can avoid future problems with the IRS. You also need to consider that there are many different states where your trailer may be rented. Should a customer sue you or your company, you have to anticipate that different states have different laws regarding liability. Obtain the legal advice of counsel and ensure that you can defend your company in different states under various sets of laws.