Special Conditions for Local Residents
We have instituted special “Local Residents” conditions (Clause 8) into our Rental Terms and Conditions and have created a special Local Residents Rental Application form which will be used to determine whether applications for rental will be granted.
The biggest single issue for car rental operators throughout the world is “theft by hirer” and renters who live within 100Klms of the rental depot are substantially over-represented in the statistics.
Each of the five specialist car rental fleet insurers operating within Australia have, in the last five years, experienced increased levels of claims resulting from hirers not returning vehicles at the end of the agreed rental term.
If someone arrives on a pre-booked plane and plans to depart on a pre-booked plane, they are much less likely to cause any concern about running off with the vehicle than people who have no such arrangements.
In order to stem the tide of these unnecessary and annoying costs, the insurance companies have instituted a range of sanctions against “local residents”. This has led to a significant proportion of rental companies declining to rent to people who live locally.
Many car rental companies impose higher costs and significant (e.g. $2,000) Security Bonds on local resident customers.
Our own insurer has notified us of their intention to require higher insurance premiums and insurance excesses on local resident renters across the board for all of their rental company fleet clients.
We have instituted special “Local Residents” conditions (Clause 8) into our Rental Terms and Conditions and have created a special Local Residents Rental Application form which will be used to determine whether applications for rental will be granted.
Customer compliance with these conditions will enable us to continue to deal with local residents on a non-punitive basis.
Clause 8 of our Terms and Conditions of Rental states:
Applications for rental must be supported by a mobile phone number and by a verified land line number (home or work), occupancy of the given address must have verification other than the driver's licence (e.g. confirmation from estate agent; electricity bill; rates notice etc.).
The Security Bond required is the amount of the Renter’s liability in respect of accidental damage plus $100 and is required to be paid in full at time of collection of the vehicle, minimum acceptable Security Bond is $200.
No extensions of rental can be requested less than 1 hour prior to the conclusion of the rental contract as documented unless the entire extension fee is paid prior to the commencement of extension.
The Renter is in breach of the Terms and Conditions of Rental where:
- Any telephone voice or text message made by the Owner is not responded to by the Renter on the day that the message or call is made.
- If the Renter changes their residential address during the Rental Term without providing the Owner with the details of such change of address, prior to making the change.
Failure to return the vehicle later than the contracted time and date may result in the forfeiture of the Security Bond and notification to the police that the vehicle has been stolen.
Local Residents Rental Application
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