Bicycle / Electric bike rental contract

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Admit it, it's happened to you too. You bought too quickly, you missed the little size 6 lines at the very end of the contract, or even worse, you didn't even think of signing one, and then the seller disappeared, vanishing into thin air, leaving you stunned, with your poor merchandise on your hands.
With no possibility of recourse.
Nada.
As a bike rental company, this has certainly happened to you. A false name, a forgotten clause and you're not protected against equipment breakage, having to take financial responsibility for theft or an unlisted accident on your own. It's precisely to prevent this kind of problem that a bike rental contract is essential.Article 1101 of the French Civil Code defines a contract as "an agreement that creates obligations, implying an agreement of will between at least two persons", according to the French Ministry of the Economy.
Thank you, Mr. Minister.

Bicycle/electric bike rental contract: protection for lessor and lessee

Obligatory and essential for your peace of mind and your wallet, the bike rental contract is therefore an official document to be prepared with care. It's the document that binds you and the renter as a rental company, and it must contain certain information to protect, secure and limit the risks for both parties. And if it's necessary to use it according to the regulations for renting bicycles, it's also a good way of reassuring your customers and allowing you to operate with complete peace of mind.

All right, but what does it say? In reality, there's no such thing as a standard bike rental contract. However, there are a few essential clauses that must be included, to create simple and effective General Terms and Conditions (GTC) detailing the responsibilities of each party, so as to protect both you and your customers.

1. Indicate who is involved in the rental contract

"I, the undersigned, Mr. Smith, do take for my husband..."
No, we're joking, but having said that, a rental is like a mini-marriage with an expiration date. So, yes, there are indeed "undersigned", i.e. the parties involved in this short marriage: the person renting, i.e. you, your bike rental company, and the individual or professional wishing to use your equipment as a tenant.

So here, it's just like at City Hall. We are NOT exhaustive. We write everything down. Don't just put "Lulu" or "Tom", even if nobody, including at work, ever calls you by your full first name. On the contrary, remember to include all your legal information, your business address and the full name of the company's legal representative.

The same applies to the tenant concerned by the contract. If it's a professional, ask him or her to fill in all the relevant information. If it's a non-professional renter, remember to fill in the full name, address, telephone number or e-mail address. Don't forget to verify this information by checking the ID, Kbis or siren number for a professional.

The aim is to guarantee the veracity of the contract without going through the Don Corleone process. We're joking.

2. Describe what is involved in the rental

Yes, it seems obvious, the lessor must specify the object to which the general rental conditions apply, i.e. :

1. The product for hire: mountain bike, VAE, Fatbike ...
2. Rental quantity
3. Its reference
4. Accessories also rented with main equipment: helmet, gloves, pump, etc. 

3. Add conditions of use for the rental

The description of the equipment may be accompanied by conditions of use to prevent misuse of the equipment. Various elements can be specified here: use is for tourist purposes, no lending/subletting, restriction to a given territory, etc.

Example clause: "When parking equipment, it is compulsory to use the anti-theft devices provided and to take detachable items with you."

Lokki's advice 💡
Whether you have a small or large fleet of bikes on hand, consider referencing your products using ID numbers. That way, you'll be able to differentiate them easily and save time later!

4. Specify the condition of the rented bike in the contract

When the bike is handed over and returned, a report on the condition of the equipment is drawn up to ensure that everyone knows what is being rented. This condition must be mentioned in the rental contract.

This enables the lessor to ensure that the equipment is returned in the same condition as when it was handed over to the lessee. The hirer will be responsible for any damage to the equipment noted on the exit ticket.

Lokki's advice 💡
Remember to take photos of the bike and any scuffs, scratches.

‍5. Specify rental price

This includes the rental price (per calendar day) and how it is calculated, as well as any penalties for late payment and the request for a potential security deposit.

You can also detail in this clause the consequences of a reservation cancellation, for example.

Lokki's advice 💡
‍Indicate the type of deposit selected. Please note that it is forbidden to deposit any form of identification!

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6. Indicate the dates of the bike rental

In essence, a rental is a fixed-term loan. You should therefore indicate the start and end dates in your bike rental contract, to specify exactly how long your equipment will be made available.

Whether you are renting by the hour, half-day, day or over several days, you must indicate precisely :

The contract specifies the rental period and defines :

1. Date and time of delivery
2. Date and time of return of equipment

This clause is all the more important as the transfer of risk takes place when the hirer takes possession of the equipment.

*Please note that for medium/long-term rentals, it may be the renter's responsibility to take care of equipment maintenance.*‍

‍Lokki's advice 💡
Make a clear note of the consequences of failing to return it on time.

7. Specify the place of delivery of the rented product

Again, this may seem trivial, but it's important to specify in your rental contract where the equipment is to be dropped off and returned, and who will take care of it.

This is important because, as a rental company, you can offer your tenants several options:

• A deposit at another branch
• In-store depot
• Home delivery.

Whatever happens, this service must be included in your contract, and you need to make sure you've understood the same thing, otherwise you'll get lost in your diary.

Lokki's advice 💡.
‍ If you want to ensure a good quality of service, offer several options depending on the customer. Make sure you have a contract template specifying all these choices, and don't forget to tick the relevant box to leave no doubt about the borrowing terms!

8. Specify rental payment method

In euros, dollars, dinars, bitcoins? Specify, below the price including VAT to be paid by the renter, the different means of payment authorized and available:

- Cheques
- Cash
- Credit card
- Bank transfer

9. Provide a security deposit and a deposit cheque

Because your bike has cost you a lot of money (or not) and you want to take good care of it, it's a good idea to add a rental deposit to the contract, which the renter may or may not accept before validating your transaction.

This amount should not be chosen lightly. It must take into account compensation in the event of major incidents, as well as maintenance and repair of your equipment throughout the year.

10. Take care in drafting your general rental conditions

Here they are. The famous CVGs that every self-respecting retailer knows by heart. What are they actually for? Quite simply, to protect you and enable you to rent out your beloved products legally.

Typically, this is where you'll find all the terms and conditions of your rental service as such: purpose of the contract, user responsibility, payment terms, equipment, clauses in case of dispute, bike insurance, civil liability, return or deposit of rented equipment.

→ The tenant's obligations

This clause defines the obligations incumbent on the person renting the equipment: taking care of the equipment, complying with the Highway Code, not subletting it, respecting the agreed use...

The lessor may agree that theft, loss or damage to the equipment will be at the lessee's expense, or may propose that the lessee take out insurance in this respect, thereby increasing the rental price.

Lokki's advice 💡
‍Remind the renter that third-party liability is useful, as it covers bodily injury and property damage caused to self and third parties.

→ The lessor's obligations

The rental company must provide equipment that is in good working order and safe. This implies regular maintenance of the equipment, and a precise check before each new rental. He must also inform and warn his renters of the risks involved in using the product he provides*.

‍Thelessor is obligatorily liable in the event of damage caused by a latent defect in the item, whether or not he was aware of it when the equipment was made available (manufacturing defect, for example).

Lokki's advice 💡
When renting, it can be interesting to create an inventory of fixtures specifying how the equipment is to be maintained.

11. Leave some room for autographs and legal notices

Again, this may seem strange, but you need to specify how the contract commits both parties, by adding a small sentence above the tenant's signature.

For example:

• "I hereby certify that I have read and accept the general rental conditions set out in the contract.
• "I acknowledge that I have collected the equipment in good working order and undertake to return it in the same state of wear and tear."

It's time to sign, and always remember to preface a signature with the handwritten words "read and approved".

Oh, and the latest tips for your rental contract?

Don't forget to have the contract, including the CGL, signed in duplicate, with the handwritten phrase "read and approved". An informed customer is worth two!

E‍t above all, be sure to modify your contract to your activity! If you add accessories or features, don't forget to indicate this in black and white in your rental contract.

If you still need a little help, we've put together a contract template just for you 🧅.