How should the condition be recorded?

Describe it in the agreement and attach dated photos at handover. That makes deposit deductions for damage much easier to justify.

What happens if the equipment breaks down?

If it fails through no fault of the renter, the renter stops using it and tells the owner, and rent stops until it is fixed or replaced.

Does the renter need insurance?

The template lets you choose. For expensive equipment, requiring the renter to insure it is common.

Free template

Equipment rental agreement template

An equipment rental agreement covers renting out tools, machinery, cameras or any other gear: how long, at what rate, the deposit, how the equipment must be used and who pays if it comes back damaged. Edit it in the browser and send it for signature from the same page; the free plan includes 5 sends a month and never asks for a card.

Start free with this template

When to use it

Renting construction equipment, tools or vehicles to a customer.
Lending camera, audio or event gear for a shoot or a show.
A business renting out spare equipment to another business.

What's in it

1.Equipment
2.Rental period
3.Rent and deposit
4.Use and care
5.Maintenance and breakdowns
6.Loss and damage
7.Return
8.Liability
9.General

Plus signature, name and date fields for owner and renter.

The full template

The text you start from, exactly as it opens in the editor. Bracketed blanks are yours to fill in; highlighted fields are filled by each signer.

Equipment Rental Agreement

This Equipment Rental Agreement (the “Agreement”) is made as of Date signed — Owner between [Owner name] (the “Owner”) and [Renter name] (the “Renter”).

1. Equipment

The Owner rents to the Renter the following equipment, with any accessories listed (the “Equipment”): [description, make, model, serial numbers, quantity]. Condition at handover: [describe, or attach photos].

2. Rental period

The rental begins on [start date and time] and ends on [end date and time]. The Equipment will be [picked up by the Renter at / delivered by the Owner to] [address].

3. Rent and deposit

Rent is $[amount] per [day / week / month], for a total of $[amount], due [on signing / at pickup]. The Renter will pay a security deposit of $[amount], which the Owner will return within [seven (7)] days after the Equipment comes back, less any amounts owed under this Agreement, with an itemized statement.

4. Use and care

The Renter will use the Equipment only for its intended purpose at [location or area], by competent people, following the manufacturer's instructions and applicable law. The Renter will not sell, lend, sub-rent or modify the Equipment, or take it outside [area] without the Owner's written consent.

5. Maintenance and breakdowns

The Owner confirms the Equipment is in good working order at handover. The Renter will do routine care such as [cleaning / refueling]. If the Equipment breaks down through no fault of the Renter, the Renter will stop using it, tell the Owner promptly, and rent stops until it is repaired or replaced.

6. Loss and damage

From handover to return, the Renter is responsible for loss of, theft of and damage to the Equipment beyond normal wear and tear, and will pay the reasonable cost of repair, or replacement value of $[amount] if it cannot be repaired. The Renter will [maintain insurance covering the Equipment / not be required to carry insurance].

7. Return

The Renter will return the Equipment clean and in the same condition, apart from normal wear, by the end of the rental period. Late returns are charged at the daily rate for each day or part day late.

8. Liability

The Renter is responsible for injuries and damage to others caused by the Renter's use of the Equipment, and will indemnify the Owner against claims arising from it, except to the extent caused by a defect the Owner knew of or by the Owner's negligence.

9. General

The Owner keeps title to the Equipment at all times. This Agreement is governed by the laws of the State of [State] and is the entire agreement on its subject.

Signatures

Owner

Signature: Signature — Owner

Name: Full name — Owner

Date: Date signed — Owner

Renter

Signature: Signature — Renter

Name: Full name — Renter

Date: Date signed — Renter

This template is a general-purpose starting point written in plain English for use in the United States. It is not legal advice and has not been reviewed for your situation; for anything high-stakes, have a lawyer review the final version.

How to send it for signature

Step 1
Start from the template
It opens as a document in the editor with both parties' signature, name and date fields already placed. Fill in the bracketed blanks and change any clause.
Step 2
Add who signs
Put an email address on each party, set the signing order if it matters, add an access code if you want one, and add a viewer for anyone who only needs to read it.
Step 3
Send it and track it
Each signer gets a link and signs in the browser, no account needed. You see who has opened and signed, and everyone gets the completed PDF with a certificate of completion.