Personal Property Rental Agreement FAQ - United States

Personal Property Rental Agreement FAQ - United StatesPersonal Property Rental Agreement FAQ - United StatesDefinitionsWho is the Lessor?The person who owns certain property that they are willing to rent to a lessee.Who is the Lessee?The person who needs to rent certain property from a lessor.What is the governing law for a Personal Property Rental Agreement?The governing law is the law of the jurisdiction in which the personal property is located at the time that the Personal Property Rental Agreement is entered into.What is the Lease Term?The Lease Term is the time length of the Personal Property Rental Agreement. At the end of the term, the Lessee must return the personal property rented and pay any outstanding rental amounts under the Personal Property Rental Agreement.What is Interest?Interest is an amount charged to the Lessee for overdue payments. It is usually expressed as a percentage of the rental amount owing. The interest rate is the annual interest rate.What is a grace p eriod for paying rent?A grace period relates to when the Lessee fails to make a scheduled payment on time. A grace period is a period of time during which a payment may be made after its due date without incurring a late penalty. If the lessee (renter) has bedrngnis made its late payment before the end of the grace period, the lessor, in certain circumstance, may elect to terminate the lease.What does Renewal mean?Renewal means that the Lessee can extend the lease term once the original term has expired without the further consent of the Lessor.What is a damage deposit?The damage deposit is money that the Lessee pays to the Lessor at the start of the lease term to cover the costs of any repairs caused by the Lessee. If some of the damage deposit still remains after all repairs are completed, the remainder of the damage deposit will be returned to the Lessee, or if there are no repairs that need to be done to the property, then all of the damage deposit will be returned to the Lessee . Sometimes it is referred to as a security deposit. The deposit can also be used to pay any outstanding rental charges owed by the lessee.What is an Assignment?An assignment transfers all of the rights and obligations that a fete to a contract has to a third party. The party assigning the contract gives up its rights under the contract to the third party, who becomes a party to the contract.What does Automatic Renewal mean?Automatic renewal means that the rental agreement continues indefinitely on the agreed upon time period (weekly, monthly, or yearly) until either the Lessor or the Lessee gives notice to the other party that they will be terminating the rental agreement.What is the cash value of the property?The cash value would be an estimate of what the property is worth at the time the agreement is made. This amount may not necessarily be the same as what the Lessor paid to acquire the property.What is delivery?Delivery refers to the time at which actual physical possession o r control of the rented property is transferred from the Lessor to the Lessee.What does Merchantable Quality mean?Merchantable quality means that at the time of delivery, the property is fit for the intended purpose stated by the Lessee in the Personal Property Rental Agreement.Is there a difference between renting and leasing?These two terms are actually interchangeable in that they have the same legal meaning. The only possible difference between them is that leasing is sometimes used mora for long term arrangements, and renting for short term arrangements. Further, leasing is more often used for real estate and renting is used for personal property.Personal Property Rental Agreement DetailsWhy would I want to use a Personal Property Rental Agreement?You are not required to have a written contract in order to lease personal property. However, it is a good idea to use the Personal Property Rental Agreement so that all of the terms of the lease are clearly known to both the Lessor and Lessee. A written lease will help to prevent potential disagreements from arising in the future between the Lessor and the Lessee.Can the Personal Property Rental Agreement be used to lease real estate?No, real estate is considered to be real property, not personal property, so the Personal Property Rental Agreement cannot be used. To rent real estate, use either LawDepots Commercial Property Lease Agreement or LawDepots Residential Property Lease Agreement.Can I use the Personal Property Rental Agreement to rent equipment?Yes, the Personal Property Rental Agreement can be used to rent equipment. However, this agreement may not be sufficient for all schriftarts of equipment, in which case, try LawDepots Equipment Rental Agreement which is tailored for dealing with equipment more extensively.Do I have to use the long version of the rental agreement?No, you are free to decide which version of the rental agreement you wish to use. The short version of the rental agreement is frequ ently used where the terms of the lease are straight forward, or where the Lessor has an existing relationship of trust with the Lessee and does not need all of the protections provided in the long version.How much should the damage deposit be?Damage deposits are frequently equivalent to the value of one months rent, but can be any amount that the Lessor decides upon.Should the Lessee have insurance for loss or damage to the property?It is strongly advised that the property should be insured. It is common practice for the lessee to have to get such insurance.Should the Lessee have insurance for Public Liability and Property Damage?This type of insurance will indemnify individuals or property that are injured or damaged by the Lessees use of the rented property. The Lessee is advised to obtain this form of insurance only if the rented property can conceivably cause damage to other people or property. For example, this type of insurance may not be necessary for a leased watch, but sho uld be obtained for a rented automobile.As the Lessee, can I assign the rental agreement to someone else?Usually the Lessee cannot further assign the rental agreement unless the Personal Property Rental Agreement clearly states that the Lessor has given permission for the Lessee to assign the rental agreement.As the Lessor, can I assign the rental agreement to someone else?Usually the Lessor is free to assign the rental agreement without the Lessees permission. However, to avoid a potential legal dispute, the Lessor should ensure that the Personal Property Rental Agreement clearly states that the Lessor can assign the rental agreement.If the rental agreement is not for a fixed term, how much notice do I need to give the Lessee before I terminate the rental agreement?The minimum amount of notice may vary depending upon the jurisdiction the type of personal property and the reason for giving notice. You must consult your jurisdictions applicable laws to determine the minimum notice wh ich you are legally required to provide.What if I select a notice period that is too short?You must provide the Lessee with at least any statutory minimum amount of notice. If the notice period is less than any minimum period prescribed by law, then the notice may not be legally valid.Who should pay for the delivery?There is no statutory requirement as to who should pay for the delivery. The parties are free to decide this issue however they see fit.How should the property be returned to the Lessor once the rental agreement has expired?The parties are free to decide how the property will be returned the Lessor can retrieve the property from the Lessee, or the Lessee can deliver the property back to the Lessor. Whichever method is agreed upon and included in the Personal Property Rental Agreement must be followed, unless both parties subsequently agree to an alternative method of returning the property to the Lessor.Should I put restrictions into the Personal Property Rental Agreemen t as to how the Lessee can make use of the rented property?The Lessor has the vorkaufsrecht of putting restrictions on the use of the property. However, if the Lessor does not include any restrictions, then the Lessee will be entitled to use the property as he/she sees fit.What happens if I forget to include a specific tax or fee that I want the Lessee to pay in the Taxes section of the Personal Property Rental Agreement?If a specific tax or fee is not listed in the Tax section of the Agreement as being paid by the Lessee, then the Lessor will be responsible for making that specific payment. The Lessee is only responsible for paying taxes and fees that are included in the Personal Property Rental Agreement or that are required by law to be paid by the Lessee.How should an option to renew be phrased?Typically, an option to renew will state at what point in time the Lessee can notify the Lessor that they are going to renew the lease, the method of notice, the terms on which the rental agreement will be renewed, and the duration of the new rental agreement.For example Within 60 days of the end of the term of the Agreement, the Lessee may notify the Lessor in writing at the Lessors personal address that he/she is exercising his/her right to renew the Agreement on the existing terms of the Agreement for an additional 2 years.How much interest can the Lessor assess against the Lessee for overdue payments?The Lessor and Lessee are free to negotiate a rate of interest for overdue payments in the Personal Property Rental Agreement. However, some jurisdictions have established a maximum level of interest that can be assessed, and the Lessor cannot exceed this maximum rate of interest even if the Lessee consents. As a lease is not a loan, the various usury limits are not applicable.Signing DetailsI do not know when the Personal Property Rental Agreement will be signed. Can I fill in the date later?Yes, by selecting Unsure as the date the agreement will be signed, a blank line will be inserted into the lease so that you can add the correct date after printing the document.Do I need witnesses to sign the Agreement?No, it is not necessary for witnesses to sign the Personal Property Rental Agreement. Only the Lessor and Lessee must sign the document to make the lease legally valid.