What’s an RV Rental Agreement?
An RV rental agreement is a legally binding document between a rental company (lessor) and an individual or a business (lessee) hiring an RV. This contract details key aspects of the rental, such as what is being rented, who is authorized to use the RV, the rental period, payments, pick-up and return procedures, and repair responsibilities. Unlike purchasing an RV, which provides permanent ownership and permanence, renting it requires a contractual obligation, regardless of being for one day or one year . Not all legal agreements are considered contracts, but for an agreement to qualify as a contract, it must include a series of essential elements. These elements must be present for both parties to be legally bound. However, not all rental agreements for recreational vehicles conform to this. Motorhomes with customizable interiors and mobile homes intended for more permanent residence often have custom contracts, in which case standard RV rental contracts may not apply.
RV Rental Agreement Essentials
The key elements of an RV rental agreement include rental terms, rental fees, insurance, and responsibilities of both the rental company and the renter. Let’s discuss each.
Rental Terms
The rental agreement will contain essential information such as the starting and ending dates of the rental period, which will help confirm the return date, and what is proposed to be rented such as a Class A gas or diesel motorhome, Class C motor home, travel trailer, or module trailer. The rental agreement will also indicate the pickup location and drop off location. The rental agreement may also contain provisions regarding "Early Return Fees" and "Late Return Fees." If you are thinking about returning the RV early, verify that it is permissible to do so, and whether it will result in a refund of any prepaid fees or payments due. Some RV rental companies do not handle early returns well. If the RV is returned after the previously scheduled time, late fees will likely be charged based on the terms of the rental agreement. Most RV rental companies establish later times on Sundays and Mondays than the rest of the week. Check your rental agreement for how late you can return the RV.
Rental Fees
The rental agreement will contain other fees associated with the rental. For example, mileage fees are often charged for additional mileage over a certain number of miles. The rate may be as much as $0.35 per mile. Be careful; some SUV rental companies charge as much as $1.50 per mile if the mileage exceeds 100 miles. Many RV registries charge daily fees based on the number of nights rented. Taxes will often be charged. Other charges that may be on the rental agreement include: cleaning, black tank dumping, vehicle leaving the area of operation fees, wasting time in the office fees, no smoking in RV fees, unauthorized driver fees, appliances fees, extra generator fees, late fees for returning the RV after agreed-upon time, and fueling fees.
Insurance
Confirm that the rental company carries liability, collision, fire and theft insurance. In most cases, you should never rent from an RV rental company that does not carry this insurance. No matter what the rental contract says, you can be held responsible for any damage. It is best to check with your auto insurance company BEFORE you rent the RV. Specifically, confirm with your insurance agent that your auto insurance policy extends coverage to operate RVs along with the limits of that coverage.
The RV rental company may offer you supplemental insurance, but check your insurance company for the extent of your coverage first. The supplemental coverage may be unnecessary and you do not want to pay for an additional policy that duplicates coverage. If you require additional supplemental insurance, you may be able to buy a single day policy from a travel insurance company.
If you have purchased travel insurance, confirm with the travel insurance company that it covers an RV rental. Most property insurance policies do not cover RVs, so check your policy language carefully.
Some RV rental companies may offer damage waivers to cover damages. Damage waivers are available as a daily charge (up to $30 per day). As long as the damage waiver is properly disclosed before the rental, they are enforceable. But don’t be duped. For example, damage waivers are NOT coverage for: Damage waivers are NOT liability coverage. If you kill someone in an accident, you will be personally responsible for any judgment entered against you and any deductibles owed. Some courts do not enforce damage waivers contained in the rental contract if they were not signed. Some RV rental companies do not require you to purchase additional supplemental insurance or a damage waiver, and some only recommend purchasing these products as part of a business sales technique. But be careful; if your insurance policy excludes RVs, the RV rental company may not honor your insurance policy.
Inspect the RV and document all scratches and dents in writing and with photos before you drive off. You may even want to take photos when you return the RV to keep record of any pre-existing damage.
Common RV Rental Clauses
The written rental agreement for the RV should be very similar to rental agreements for other motor vehicles. However, they will contain some unique clauses that are specific to the vehicle being utilized. While it is impossible to cover every clause and version of rental contracts, most RV rental contracts will contain the following: Recreational Vehicle Rental Contract. It is no surprise that the contract used to rent a recreational vehicle will indicate that the property being rented is indeed a recreational vehicle. This section of the contract is designed to prevent any confusion during the rental period and to ensure that no one is mistaken as to whether it is a full-time residence or simply a rental vehicle. While the public often thinks of RVs as the former, the latter is much closer to reality. Mileage Limitation. Most practical RV uses include long-distance travel. If that is your plan, make sure that the contract does not contain mileage limitations. It is common for motor vehicle rental contracts to have mileage caps, requiring that any overages be paid at a specific rate. RV contracts may also have mileage caps, though they tend to be more flexible than car rental contracts. It is important to understand your particular rental contract in order to avoid unnecessary fees. Use Restrictions. Many vehicle rental contracts expressly state any restrictions on use of the vehicle. For instance, most RV contracts are going to apply restrictions for races, off-roading, moving or freight purposes, etc. It is particularly important that you understand the scope of local regulations. For instance, the owner of the vehicle may have liability for accidents that occur in the state where the vehicle is registered. While proof of insurance from the renter will still satisfy that requirement, it can devastate an owner if the renter ends up being underinsured or uninsured. It is recommended that the owner check with a local attorney to understand their liability and the liability of their insurance carrier. In addition, you should seek to understand and control the areas where the vehicle can operate. For example, many rental agreements specifically prohibit rental cars from being driven across international borders. Travelers often violate those terms, punishing the car rental company when the vehicle is damaged and lost overseas. That means unexpected costs for the carrier, which may be passed on to you. Make sure that you don’t put yourself in that position by understanding the terms of the contract. Maintenance and Inspection Responsibilities. An RV can have many mechanical problems as compared to your ordinary car. For that reason, numerous contracts specifically place the burden of maintenance and repairs on the renter. While those responsibilities typically involve simple things such as changing the oil or ensuring the proper fluid levels, they can be complicated by the unusual size and distance of travel that is common with RV rentals. On a car rental, it is common for the company to provide service stations for inspection and repair. However, on an RV rental, that is likely to fall onto the renter, so be prepared.
Things to Keep In Mind Before Signing
Before signing an agreement, it is crucial for you to carefully review the terms and conditions. Rental agreements should clearly disclose all exactions, whether in the agreement or in supplemental schedules. If any other documents will be incorporated by reference, those documents should be attached and clearly identified. Some of the most common issues I find with rental agreements are strict damage liability provisions and failure to disclose additional charges. Do not assume that the RV will be covered under any type of insurance beyond the company’s standard coverage provision; you should check to see if further coverage can be purchased for extra peace of mind.
It is important to inquire into the standard customer damage policy for the specific RV you are renting. Standard damage liability coverage usually only covers damage to the RV itself. However, you may be liable for damage to third parties caused by your use of the RV, and you may also be liable for any vehicle or RV on which you cause property damage. Again check to see if additional coverage is available if you are renting a trailer or towable RV.
Please also keep in mind that often times, damages are not observed until you have driven the RV, which may result in the rental company blaming you for damage that occurred before you took control. I would highly advise taking before and after photos and getting the agent to inspect the RV before you leave the lot.
State RV Rental Laws
It is important for both RV renters and owners of RV rental companies to be aware of the applicable state laws in their particular area. In 2015, Oregon introduced House Bill 2067, legislation that "requires, for purpose of renting a recreational vehicle, operator of recreational campground to be specified type of business entity." Other states have similar laws with different provisions. Regulations vary by state , but in some cases, the law may require the RV rental company to register as a business, obtain insurance and obtain the necessary permits. It is possible that the state could take action against a business that rents out recreational vehicles without being properly licensed. On the flip side, such laws may provide certain consumer protections for RV renters.
Negotiating an RV Rental Agreement
When the time comes to negotiate the terms of your RV rental agreement, you have a lot more room for negotiation than you may have thought possible. As a general rule, there are certain areas of flexibility in any RV rental contract, and by knowing which parts may be open to change, you can customize the terms to fit your needs more closely.
The Area Charter
A major part of your negotiations will involve where you pick up and drop off the RV. By being flexible with your timeline, you can often find a rental center that will meet your needs. After all, the agencies depend on availability of well-maintained RVs, but the greater the distances they travel, the fewer RVs they have available for other renters.
Contract Terms
Most rental agreements specify the total number of miles that you can drive the vehicle for the length of your rental term. It also usually specifies an additional cost if you exceed that mileage. When negotiating the terms of your rental, you should look at these costs as a whole. Sometimes it’s more economical to pay the additional mileage than the fee.
Insurance Expenses
Sometimes, insurance coverage on the rental vehicle is included with the rental, but sometimes it’s not. When you find the "perfect" RV for your rental adventure, check to ensure that you have appropriate insurance coverage. You may need to buy a rider for your own insurance policy, or you may need to purchase coverage through the rental agency. If you’re unsure about how to cover the RV for the duration of the rental, ask for advice through your insurance agency.
Equipment Specifications
An RV rental is similar to a car rental, in that it’s important to know what equipment is part of the package, and what is an optional add-on expense. While it may be tempting to go with the "extras" offered by the rental company, many times this is an area where you can save money by sourcing things yourself. For example, if the company charges $200 a week for an extra camp chair, it’s better to simply make arrangements to head to the nearest store to buy a couple of folding chairs.
Inspecting the RV
Finally, don’t skimp on having the RV inspected before you take possession. This is part of the negotiation process; you don’t want to pay for damages that may have been caused by the last person to rent the vehicle. Take plenty of photos of the RV while you inspect it, so you can prove the condition it was in when you took possession.
In Case of Dispute
When those renting RVs have problems with the agreement and the use of an RV, the first step is to try to resolve the dispute directly with the rental company.
If speaking with the rental company fails to resolve the disagreement, a renter has several options for mediation and legal recourse. For mediation, the parties can agree on a mediator and share the costs of the mediation session or they can use the services of an outside organization specializing in mediation, such as the American Arbitration Association. In this case, the party claiming the dispute generally pays the entire cost of the mediation session. After the session, the mediator may draft an agreement for the parties to sign documenting the outcome.
RVs are personal property so cases involving RVs typically fall under state law. This means that a renter’s case technically has to be filed with the court in the jurisdiction where the RV is registered. In some cases , this means paying fees and traveling to a court located hundreds of miles away from the renter’s home. A state court hearing generally will occur within 30 days of filing the case.
Another option for renters with smaller disputes is to file a small claims case against the rental company. Again, the case will have to be filed with the appropriate local court and follow all established procedures for filing and arguing a case before a judge. Typically, small claims courts will only hear cases in which the plaintiff’s damages don’t exceed $5000. Most RV rental companies also only rent RVs valued at less than $5000, although damages may exceed the RV’s value, so it is important to carefully budget the amount of the claim before moving forward with the case.
Renters should remember that they are responsible for following all procedures and making any payments to the court in small claims cases. If a case is filed with the appropriate court and against the correct party, a judgment can be awarded in favor of the plaintiff, but if the case is not properly filed, the judge may dismiss the case or rule against the plaintiff even if the rental company committed breach of contract.