Motorhome Rental Agreements Explained
Before we delve into templates and examples, it’s important to understand the fundamentals of motorhome rental agreements. What is a motorhome rental contract? Who are the parties involved? What does it usually cover, and why is it so important? Furthermore, do I need a lawyer to help me draft one of these yourself?
In its most basic terms, motorhome rental agreements are legal documents which lay out the terms and conditions for renting a motorhome between the motorhome owner (LESSOR) and the motorhome renter (LESSEE). These agreements are not always limited to motorhomes-terms like these can apply to RV, trailer, mobile home, or camper rentals as well. It’s a contract with terms and conditions that both parties actively participate in completing, signing, and then abiding by. Failing to do so opens up both parties to legal liability down the road.
Motorhome rental agreements are governed by consumer protection laws in each state , and outline the rights and responsibilities of both renters and owners when renting out or leasing a vehicle. Though the terms may vary significantly between states, there are a few essential components that help form the backbone of every rental agreement, regardless of its contents. Every motorhome rental agreement should at least include the following: identifying details for the LESSOR and LESSEE, details about the vehicle, terms of use, deposits and payments, vehicle insurance requirements and liability, terms of termination, and dispute resolution.
The above list isn’t exhaustive, but it does provide a general framework for what a motorhome rental agreement should include. While it’s important that both parties understand the purpose of the contract and its terms, even in its absence, the state or local laws will likely still hold you and your renters accountable to them. This means that the above provisions might become legally binding even if they aren’t expressly spelled out in your agreement.
Essential Parts of a Rental Agreement
When embarking on the exciting venture of renting out your prized motorhome, enrolling in an RV rental business program is only half the formulation for a successful rental strategy. The other half is a well-constructed RV rental agreement template that protects you and that would-be renter from any avoidable legal risks. A good motorhome rental agreement should address the following critical elements: Terms of rental – how long can the motorhome be used, from what day to what day, and what times of day are restricted as compared to open for use rather than entry by you, if you choose not to rent it out during those times. Payment – many issues will require payment, such as rent, damage deposits and insurance. When and how much money changes hands should be addressed to reduce the possibility of misunderstandings, which can rapidly unravel any agreement. Security deposits – many businesses, including the motorhome rental industry, find that a security deposit does more than any lengthy and expensive agreement to protect themselves from blocks of unfair damages taken out of context from normal wear and tear amounts. Insurance – all motorhomes come with some bare-bones coverage. Check into whether additional coverage should be recommended or required for the comfort of you and your renters.
Legal Requirements and Relevant Laws
When writing an effective motorhome rental agreement template, it is imperative to consider the element of legal compliance – both for the owner and the renter. In this section we will detail considerations like local ordinances, zoning and licensing legalities that could come into play.
One of the most important considerations is that owners renting their motorhome or RV for short periods of time (less than 30 days) in many counties and municipalities are breaking laws prohibiting short-term rentals. Sections of Philadelphia, San Francisco, and New York – to name a few – have cracking down on brokers and individuals engaging in short-term rentals. In fact, in late 2016, Airbnb – a popular resource for short-term rentals of motorhomes and RVs (as well as residential properties) – was fined $80,000 for listing rentals for a bachelor party to the Super Bowl in San Francisco.
If you choose instead to use a platform like RVShare or Outdoorsy the contracts and agreements offered by these websites should cover all of the bases for you.
Another consideration are laws regulating vehicle leasing in your location. Some states have different leasing arrangements and specific rules regulating off-street parking of motorhomes or trailers. While states usually don’t regulate who can rent trailers, some regions do have specific regulations that may impact your ability to legally rent your motorhome or trailer.
There are also consumer protection considerations that a lawyer may identify to add to your agreement. For instance, you can have the customer acknowledge they are not a party to any other contract and agree they will not breach their own rental agreement with another motorhome rental company. You may also consider adding in information about consumers’ right to sue.
Finally, there may be insurance implications to consider. You may want to direct the renter to speak with their insurance company about providing coverage for property damage and personal liability that may occur during their rental period. Depending on where you live and how often your motorhome is rented, you may want to also consider carrying a specific rental business insurance policy.
To summarize, renters and owners should be aware of their own insurance policies and applicable laws before renting or leasing a vehicle.
Templates: Tailoring to Suit Your Purpose
A motorhome rental agreement template is a great starting point for customizing a deal with a renter. The flexibility of templates is that they do not dictate terms but merely provide a foundation for a rental, whether it be short-term or long-term. Specific needs should be incorporated into the document to best protect both parties.
To incorporate your specific needs into your rental, think about these points:
How will you get the motorhome back if the renter becomes ill?
Can the renter have the pet they weren’t supposed to bring with them if they find their dog at a shelter and wants to adopt it?
Are there going to be any service fees for mileage over a set number of miles in a day or week? How will that be calculated and paid?
Are pets ever allowed? How many?
Can a driver who is not on the contract drive, or are individuals included in the price given?
While templates are nice starting points, even companies that rent motorhomes use templates that are then customized to fit their needs.
The Advantages of Using a Template
The primary benefit of using a rental agreement template is that it saves time. It’s time-consuming and costly to write up a detailed contract every time you need to do so. It also runs the risk of key details being left out or miscommunication with the customer. With a template, you only have to go through the process of writing the document once. You can then reuse it for all your rentals by inputting the information pertinent to that rental. You might think this ends up being a simple copy/paste function, but the fact is that most motorhome rental companies will create more than one form of contract to cover different types of rentals. You might want a different contract for business rentals than personal rentals, or for local rentals versus long-distance ones. Whatever the case, it’s important to have a rental agreement template , so you can simply fill in the blanks and keep the process as simple as possible. This allows you to present the contract to the individual who will be using it, making sure you have all the details included, with no place for error. One example of this is time of pickup. If you want to stipulate what time the rental customers can pick up their vehicle, make sure you include it on the template. This will prevent false expectations when they arrive and you’re not expecting them until the next day at noon. It also protects you, because it gives you the ability to say you’re unavailable and can’t get their vehicle ready if they try to pick it up before you’re prepared for them. Other details you might like to include on your rental agreement template include the age requirements of those impact customers must meet, charges for extra mileage or fuel costs, fees for late returns, and anything else you consider necessary items in the contract.
Common Errors to Avoid
Even the most experienced motorhome rental operator can easily fall victim to a few common missteps. Here are a few of the most common mistakes that people make when creating a rental agreement template, along with some tips on how to prevent them.
Only highlighting the obvious details
If it seems like it’s going without saying, it’s written down twice in the rental agreement. Everything from the insurance policy to the pet policy to the fact that there is a security deposit should be outlined clearly. You may think that this clause about $50.00 per hour for every hour of late drop-off is self explanatory, but write it out anyway. This applies to the security deposit as well if you plan to hold it and give it back after the vehicle has been returned in good condition.
No details on maintenance
The very last thing you want is for your renters to find themselves stuck in the middle of nowhere because they took a rental motorhome out for a spin, but there wasn’t enough air in the tires. Or perhaps a blown fuse in the generator. It’s easy to fix these things with your own RV, but what will they do without you around? You need to provide instructions in your rental agreement template, and make sure that there is a location where the renters can read them. This can either be done with laminated instructions taped or nailed to the dashboard, or a pocket that contains those instructions and a rental map.
No details on drop-offs and pick-ups
Will you pick them up and drop them off? Will they have to make their way back to the rental facility on their own? Is there a fee if they cut their rental agreement short? All these things should be answered before you even meet them in person.
Choosing the Right Template Provider
The next step is to find a reliable source for your motorhome rental agreement template. Ideally, you’re looking for something that will be legally sound according to your local and state laws, so searching for free downloads online is probably not the best way to go. Instead, look for a trustworthy company offering rental contract samples or information, such as a rental and leasing convention, motorhome rental management software, or other motorhome rental licensing companies. These resources are usually more reliable than reviewing blogs or random user-generated online forums.
Another option is to visit your local Chamber of Commerce or rental company association for tips on the legal wording and clauses common in common motorhome rental agreements in your area. Chances are the resources they provide will address the phrasing that’s appropriate in your jurisdiction , and they may even be able to refer you to an industry lawyer who can assist you in fine-tuning your contract.
Finally, consider consulting with a real estate agent. Many of them can be great resources for standard rental contract verbiage, especially if they’ve had experience renting out mobile homes in the past.
Avoiding scams is another concern with searching online for contract samples. If you find services online that require registering with your credit card, be wary. While there are legitimate legal sites that charge a registration fee, many of them typically give a free trial period with an immediate free sample.
