One must keep in mind before leasing out heavy equipment

We usually get to see companies looking for sellers or leasers who are will to sell or lease their heavy equipment but they very rarely find givers in the market. At the same time, there are many people who have heavy equipment in their possession that are lying idle as they are out of projects or because they simply do not have any use of those equipment. What ironical is that they just like to keep the equipment with them instead of leasing them out to prospective takers. They often have the fear that the buyers/takers will make extreme rough use without taking proper care of the equipment. This will result in early wear and tear of the machine and they have to eventually sell it off as scrap.

In order to counter the fear of theirs, we would be focusing on few pointers that will protect the interest of the leasers and also help them to make some money.

Make your terms crystal clear in the advertisement:-

Setting up your expectation is the first thing you must do before you let out your machine to anybody. If you want them to use your machine in a particular way, then it has to be in that way and no other way or else, the person using it will be liable to pay you for the damages as well. You also have to be very specific with your terms. There should not be any scope for ambiguity and your terms should be crystal clear to the reader. If you still get calls from people, it means that they have read and understood your terms and are ready to accept it. In case, you want to pass this message to them verbally, you can talk out to them while you meet them for the deal. This will give you a message to them that you do care for your machine and if they do not comply by your terms, they will have to face the music.

The rental part should be agreed on by both the parties:-

You should know how much you can expect as rent on a monthly basis. The amount should be mentioned very clearly in the contract. If you are ready for any sort of negotiations then that also should be mentioned in it. However, if you want to stick to the price you have decided then that should be it. You can state that people willing to take the equipment on lease should have no problem with the rental amount. They may check the item and if they find it to be appropriate then make no negotiation with the rent as that will not be acceptable.

These clear messages from your end will not give the prospects any second chance to think and will be left with 2 options. If they like the stuff, then take it or else leave it. Making an agreement is very important in these cases where the period should also be clearly mentioned.