RV Rental Contracts 101
For both the owner and the renter, a properly executed RV rental contract is a necessity. For the owner, it protects you in the event that damages are later discovered or if you simply become involved in a civil dispute with the renter. For the renter, it serves as a way of ensuring that you have access to the property during the rental period at the price set forth in the contract. Both parties’ rights and responsibilities are set forth in the contract, and each has obligations to make sure that the contract is fulfilled .
The typical rental contract contains a number of important terms that are critical to the success of any rental. They include: a description and pictures of the RV, a list of renters and users of the RV, a list of all accessories that will accompany the RV, insurance requirements, fees and rental pricing, the duration of the rental, the times and locations for both vehicle pick up and drop off, the amount of the deposit required for the vehicle, and the identity of the party responsible for damages. This list is not comprehensive, but it does capture several of the important elements appropriate for contracts.
What Should be Included in an RV Rental Contract?
When crafting an RV rental contract template, it’s essential to ensure that it contains all the inevitable sections. As with any rental agreement, the rental contract for RVs should have clearly defined terms on duration, price, liability, and insurance. Without these parameters, rental contracts are not complete.
Rental Duration
The rental period must be clearly laid out in the RV rental contract. Without and without ambiguity, the rental period should detail the days that the rental period begins and ends. This allows both parties to understand how long of a time commitment is involved in the transaction. Clearly defined rental periods also protect renters from having the contract altered in the middle of their time with the vehicle.
Price
Along the lines of rental duration, the rental price for the vehicle must be clearly delineated. This portion of the contract should also specify whether the rental price includes or excludes taxes and fees for additional services. The renter must also be made aware of any and all services that will cost additional money.
Security Deposits
Another important portion of the RV rental contract template is the security deposit. Many property owners require security deposits prior to allowing prospective tenants to rent. This portion of the template should state the amount of the deposit, how it can be recovered, and when it will be recovered.
Restrictions
It’s also important to lay out restrictions in the contract. This way, both parties are aware of what is and isn’t acceptable. This section should spell out any restrictions on where the vehicle may be driven, smoke in the vehicle, or undertake other actions. Vehicles should also not be allowed to be driven off-road unless it is expressly stated. Additionally, if the owner offers pet-friendly rentals, the terms of the pet policy should be clearly spelled out in the contract.
Insurance Requirements
If your RV rental service only accepts rentals that are insured, it’s important to make that clear in the contract. Each party should be clearly informed of the insurance requirements prior to signing the contract. Furthermore, if the company offers insurance plans, the terms of the plan must be clearly spelled out so that the renter knows what he or she is agreeing to.
How to Personalize Your RV Rental Contract Template
Although using an RV rental contract template can mean just filling in the names of the two parties and the details of the rental, you may want to customize the template to make it fit your situation better.
For example, you may want to leave out language that applies only to short-term rentals if you plan to rent longer. If you intend to rent your RV for as few as 60 days per year, ask your tax professional whether that requires you to charge sales tax. You may need a modification to add language pertaining to sales tax if you are required to collect it.
A different type of modification to an RV rental contract template takes into account the laws of the state where you live. For example, some states only allow RV rentals by a licensed RV dealer. These states will have their own templates with requirements pertaining to the rental of RVs.
You may also want to customize your RV rental contract template to better reflect the particular situation in which you find yourself, such as:
When you start with a generic template, either online or in a software package, you avoid the expense of hiring an attorney or other professional who can create a rental contract from scratch for you. Although it may take a little time to fill in the details, much of the work is done for you.
Legal Essentials in RV Rental Contracts
The legal aspect of RV rental contracts cannot be understated. An effective contract will include two critical parts: a liability waiver clause and a maintenance responsibilities clause. In addition to these two essential provisions, a rental contract for RVs must also address compliance with relevant state RV rental laws and local government requirements for RV rentals.
Unfortunately, many RV renters do not think much about the legal effect of the contracts they sign. Most RV renters consider the contract the final step before they can drive off in their new temporary home. But in reality, an RV rental contract can be a sophisticated legal document that can have far-reaching implications if anything goes wrong during the rental term.
As a beginning point, a rental contract for an RV should always contain a liability waiver clause. This provision will minimize the parties’ (and their insurance companies’) exposure to liability resulting from any potential legal claims. Despite the liability waiver clause, the RV owner will still be liable for any injuries or property damage caused by the RV renter if it was caused by the owner’s negligence. But without a clear understanding of the parties’ respective rights and obligations, there are significant questions about the extent of the RV owner’s liability in the event of a lawsuit.
Some typical liability risks for RV owners and renters to consider include: (1) injuries caused by reckless or negligent driving; (2) injuries to pedestrians or to people inside other vehicles on the road; (3) injuries to passengers in the RV; (4) damage to the RV and other vehicles while parked; (5) injuries in a campground or on an RV site; and (6) damage to the RV or property at a campground, site or RV park .
In addition to liability risks, any rental of personal property involves issues of maintenance and repair responsibilities. A typical liability question involves damage to the RV due to unexpected mechanical failure. For example, if the RV failed to adequately brake on a steep downhill road, the RV owner may be held responsible for any resulting injuries. On the other hand, if the brakes failed under normal use, the RV owner will generally be held responsible for those accidents.
Another common maintenance issue involves changes in the condition of the road where the RV is parked. If a gravel or dirt road washes out due to heavy rain, for example, and the RV falls off the cliff, the RV owner may have some liability. On the other hand, if the rental property was hazardous and the RV owner did not properly warn the renter before the accident, the renter may have liability.
Finally, special attention should be given to state and local RV rental laws when drafting a rental contract. Where RV rentals are regulated by statutes or local ordinances, rental contracts must comply with those requirements. Where certain provisions are mandatory or prohibited, the contract must be drafted accordingly.
In addition, local zoning and planning ordinances may have an impact on the legality of the rental. For example, the rental may have to occur on a property zoned for commercial use. Further, certain permits may be required before the rental can occur. Thus, specific attention should be paid to your state RV rental laws and local zoning ordinances.
RV Rental Contracts: Mistakes to Avoid
One of the most common mistakes is not knowing what to look for when reviewing the contract. As stated above, you can either draft the contract (preferably in consultation with an attorney), or accept an RV rental contract template provided by your rental company. One way or another, you will need to read through and understand the terms before you sign the contract. Here are some of the most common mistakes made by renters:
Failing to Ask Questions
Any ambiguities or unclear terms should be clarified before both parties sign. Just like with any contract, any misrepresentations before you sign may not allow you to pursue remedies. If something doesn’t seem right, follow up and ask questions.
Assuming Your Understanding of a Term is the Same as the Owner
For example, if the terms state that you will be charged for "overages," you should clarify whether this means exceeding the given number of miles, or exceeding the given number of hours.
Not Reading the Entire Contract Before You Sign
You should read through the entire contract before you sign it, and you should get clarification on any confusing terms. Failing to do so means that you are agreeing to every term in the contract as they are written, and you may find yourself stuck with an unfavorable obligation when you think you’re in the clear.
Helpful Resources when Seeking RV Rental Contract Templates
While it is relatively easy to find examples of RV rental agreements online, it is important to ensure that they are applicable to your state and make sense in relation to your circumstances. Just because a template exists doesn’t mean it should be used as-is. Most would benefit from being revised to include your own specifications and to be applicable to the state in which you intend to rent your RV.
Here are some places you can check for RV rental contracts templates you can download and customize:
Legal Websites
Some legal websites, such as Rocket Lawyer, offer RV rental contract templates for RV rentals. You can create and save a rental agreement customized to your own needs . More general vehicle rental agreements are also available for cars, trucks and other vehicles.
Online Resources
Another resource for RV rental contracts is the website for the Recreational Vehicle Industry Association, or RVIA. They offer a "RV Rental Contract Builder" that you can customize to your own team. It also provides information about what should and shouldn’t be included in your rental agreement.
Professional Services
You can check with an attorney or a local RV rental company for help creating a rental contract. While not always free-especially an attorney-you may be able to get a template that has been tested and works. Sometimes it’s worth the investment to save you from problems down the road.