Needless to say, it’s best practice for any independent rental company or private lender to provide a standard rental agreement.
Although this isn’t a hard rule, a contract is important because it reduces the risk of misunderstandings and provides evidence for enforcing the agreement.
It is crucial, however, for your Vehicle Lease Agreement to comply with Australian Consumer Law. In general, this means that the contract should:
Be presented clearly and explained in plain language
Contain fair terms that don’t subjugate consumer rights
Be made readily available to any party affected by it
The vehicle owner may also need to register their security interests on the Personal Property Securities Register if the lease is longer than two years (according to the Personal Property Securities Act 2009).
This helps ensure that the owner has priority over any other security interest in the vehicle. In other words, if a debt collector pursues the lessee, their claim to the vehicle will have less priority than the vehicle owner.