Understand the Terms of Some Common Container Rental Contracts
We recently looked into some of the factors that influence storage container rental prices, as well as the fine print in leasing agreements that may affect transaction expenses. Here are a few more tiny print issues that can be found in some equipment lease contracts, but if you’re not careful, they can cost you a lot of money. I should clarify that I am not an attorney, have never portrayed one on TV, and have never been at a Holiday Inn Express. Nothing on this page should be construed as legal advice. This is just my opinion; if you have any questions about any of these topics, you should seek legal advice.
We’ve all done it: gone to the local rental store and rented a leaf blower (for example). We’re then handed an 8 12″ x 14″ piece of paper with legalese written in three fonts, single spaced on both sides, which we just sign and send on our way. You know it’s the rental company’s document in the back of your mind, so all the clauses will be in their favour and nothing in yours. On considerably larger contracts, such as for storage containers, the same thing happens.If you’re interested and want to learn more use this link
The leaf blower will cost $40 per day, and if we damage it, we’ll be on the hook for $400 or so, but a storage container will cost +/- $100 per month, and they’re often rented for several months to several years at a time, plus they’re much more expensive to buy than a blower, so more care should be taken when executing the contract.
The terms “lessee” and “lessor” will appear in the rental agreement; you are the “lessee,” and they are the “lessor.” If this is your first time doing business with this particular rental provider, you may be handed a “Master Lease” agreement. This is for both parties’ convenience; by signing this agreement once, you agree to be bound by the terms and conditions for all future transactions. This is done so that the conditions and terms only have to be negotiated and agreed upon once, and you only have to agree on the costs for all future container leasing.
Some rental contracts go even farther, implying that you agree to the contract’s terms and conditions without having signed anything other than taking receipt of the container. The point here is to study the contract language and, if you don’t understand something, ask what it means and, if you don’t like it, ask for it to be changed. Remember, they’re more concerned with getting the container moved than with getting bogged down in contract jargon. Finally, before accepting delivery of the container, double-check that you agree to all of the terms and conditions.
If you want the rental contract to protect you as well, request a copy of the rental agreement along with your quote so you may be prepared to negotiate the fine print as well as the costs.