How to Create a Bike Rental Agreement (Includes a Template)

Written by
Akseli Lehtonen
Published on
May 27, 2025
Updated on
May 27, 2025

Whether you're renting out bikes for urban exploration, outdoor tours, or seasonal commuting, having a clear, professionally written bike rental agreement protects your business and your customers. A well-structured agreement helps define who’s responsible for the rental bicycle, what happens in case of damage or personal injury, and how equipment should be returned.

In this guide, we’ll walk you through each part of the agreement step by step, provide examples, and explain how to create a dynamic contract that works across every rental, whether it’s a short hour-long ride or a week-long tour.

Legal Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Always have a qualified legal professional review your rental agreement before using it with customers — especially if you're dealing with high-value items or business-to-business rentals.

What is a Bike Rental Agreement?

A bike rental agreement is a legally binding document between the rental company and the customer. It defines the rental duration, conditions of use, payment terms, responsibilities, and risks involved when riding bicycles rented from your shop.

It often includes:

  • The rental period and return policies
  • Pricing, deposits, and repair fees
  • A release agreement and waiver of liability
  • Use and safety instructions, including the required use of protective equipment
  • Terms for returning bikes in good condition

Whether you're offering road bikes, e-bikes, or mountain bikes, your agreement ensures that all rental agreement terms are understood and enforced, and that you're covered in case of property damage, severe injury, or equipment issues like bent rims or broken spokes.

Key Components of a Bike Rental Agreement

Section Purpose Example
Parties Involved Makes the rental agreement enforceable by identifying the shop and the customer renting the bike. Lessor: CityRide Rentals
Lessee: Chris Thompson, 108 Main St, Portland
Rental Bicycle Description Defines exactly which bike is being rented, avoiding confusion and false damage claims. 2023 Trek FX 3 Disc, SN: 1423589, Size M, includes helmet, lights, and lock
Rental Period Sets the start and end times and helps enforce late returns or early drop-offs. Start: May 28, 2025 at 10:00 AM
End: May 30, 2025 at 5:00 PM
Payment and Deposit Outlines total fee, deposit held, and acceptable payment methods. $60/day, $100 security deposit, paid by card or online prior to pickup
Usage Instructions Reduces risk by detailing safe use, rules of the road, and required safety gear. Helmet required. Do not ride on gravel trails or after dark without lights. Must follow traffic laws.
Damage and Liability Spells out who covers repairs for damage like bent rims or damaged frames, and includes waiver of injury claims. Lessee agrees to pay regular shop rates for repairs and specifically release the shop from injury claims due to unavoidable risks.
Cancellations and Extensions Gives policies for rescheduling, no-shows, or longer rentals. 24-hour cancellation notice required. Late returns incur $20/hour. Extensions subject to availability.
Problem Situations Explains how renters should report damage, loss, or accidents. If the bike is stolen or breaks down, the renter must contact the shop immediately. File a police report for theft.
Acceptance and Waiver Confirms renter understands and agrees to the full set of terms, including the release agreement and indemnity agreement. Signed and dated by the customer before release. Optional electronic signature if rented online.

How to Draft a Bike Rental Agreement

Creating a bike rental agreement involves specifying distinct elements that protect both the business and its clients. Start by detailing the rental period—clearly state the start and end times while allowing for possible extensions. Define the fee structure comprehensively, including any deposits and charges for late returns. Outline the return requirements, such as the designated drop-off location and timing, with provisions for flexibility where applicable.

Identify the Parties

Start your bicycle rental agreement with the basics: who’s renting the bike, and who owns it. This section ensures both parties are clearly defined and accountable under the rental agreement terms—especially important if a personal injury, property loss, or legal claim arises later.

What to Include

What to Include Purpose
Full Legal Names of Both Parties Establishes who is bound by the agreement—both the shop and the customer.
Contact Information Ensures you can follow up about returns, claims, or repairs.
Printed Name and Signature Legally confirms the renter’s agreement to all terms, especially release clauses.
Date of Agreement Execution Defines when the rental duration officially begins for legal and billing purposes.

Tip:

TWICE fills in renter name, contact details, and order ID automatically based on order details, so you don't have to type these manually.

Describe the Rental Equipment

You need to be crystal clear about which bike is being rented—and what’s included. This avoids disputes over damage, accessories, or components replaced after return. Whether you're renting e-bikes, cruisers, or mountain bikes, this section helps protect you from claims of damaged frames, broken spokes, or missing gear.

What to Include

What to Include Purpose
Make, Model, and Size Identifies the bike clearly to avoid equipment swaps or mistaken claims.
Serial Number or ID Provides proof of which exact rental bicycle was released to the customer.
Included Accessories Lists all gear included—helmet, lock, light, repair kit, etc.—so nothing gets lost.
Condition Notes Documents normal wear, scratches, or prior damage to protect against false liability.

Tip:

TWICE links each order to your product catalog, so the bike and equipment info is pulled automatically—model, variant, accessories—into the agreement without typing a thing.

Define the Rental Period

Whether your customer is renting for a few hours or several days, your bike rental agreement needs to define the exact rental duration. This helps avoid misunderstandings, enforces timely returns, and ensures bikes are available for the next renter.

What to Include

What to Include Purpose
Start and End Time Prevents disputes over whether a return was late or early.
Pickup and Return Location Clarifies where the bike should be picked up and dropped off—especially for multi-location rentals.
Grace Period Defines a short buffer before late fees apply.
Late Return Fee Policy Sets the rate (e.g., $15/hr) to avoid surprises and ensure the next customer isn’t impacted.

Tip:

TWICE tracks exact rental start and end times for every order. When the rental period ends, late return charges can be applied automatically or manually—based on your shop’s policy.

Set Payment Terms

Clear payment terms make sure your customers know what they’re paying, when it’s due, and what happens if something goes wrong. This section of your bike rental agreement helps enforce accountability while protecting your margins.

What to Include

What to Include Purpose
Rental Fee Specifies your daily/hourly pricing or flat rate.
Payment Method Explains how the customer can pay (e.g., credit card, online checkout).
Security Deposit Protects you from property damage, bike loss, or damaged frames. Refunded if returned in same condition.
Refund/Adjustment Policy Outlines how cancellations or early returns are handled financially.
Late Fees or Repair Charges Lets renters know they’ll pay regular shop rates for components replaced or repair if the bike is returned damaged.

Tip:

TWICE automatically tracks deposits, refunds, and late charges. You can define custom rates, refund logic, and billing rules based on your rental setup.

Add Usage and Safety Instructions

Bikes may be simple to operate, but the risks are real. A strong bicycle rental agreement should set expectations around proper use, required gear, and environmental risks like traffic or road conditions. This helps reduce accidents, protect your business, and enforce rider responsibility.

What to Include

What to Include Purpose
Basic Operation Guidelines Protects your shop by specifying safe, legal use—helmets, lights, no off-roading unless allowed.
Prohibited Uses Helps avoid damage by restricting riders from stunts, racing, or riding in unsafe terrain.
Physical Requirements States that riders must be in good physical health and accept the unavoidable risk of riding.
Liability Acknowledgment Confirms that the renter assumes full responsibility and specifically releases the shop from injury or property damage claims.

Tip:

In TWICE, you can attach a waiver or usage policy to each product. These show up during checkout and are included in the rental agreement, ensuring every customer agrees to your safety terms before they ride.

Define Damage, Liability, and Waivers

Bikes take a beating, and liability can escalate quickly. This part of your bike rental agreement defines what happens if the rider crashes, the bike is damaged, or something goes missing. It also includes a release agreement and an optional waiver to protect your business legally.

What to Include

What to Include Purpose
Renter Liability States that the customer assumes full responsibility for loss, property damage, or theft during the rental period.
Damage Assessment Clarifies that damage like bent rims, broken spokes, or damaged frames will be repaired at regular shop rates.
Waiver of Claims Outlines that the customer specifically releases the shop from injury or legal theory–based claims.
Indemnity Agreement Ensures the customer agrees to hold harmless the shop for personal injury or claims from traffic or road conditions.
Insurance Clause (Optional) States that renters are encouraged (or required) to carry coverage for severe injury, property loss, or theft.

Tip:

TWICE supports waiver and liability documentation. Upload your PDF or embed your digital release into each booking, so customers can sign in person or at checkout—giving you enforceable proof before handing over the bike.

Cancellations and Changes

Even short-term rentals need flexibility. Your bike rental agreement should lay out how renters can cancel, extend, or reschedule—without leaving you stuck with unbooked inventory or unclaimed bikes.

What to Include

What to Include Purpose
Cancellation Policy Specifies how much notice is required and whether the customer receives a refund or credit.
No-Show Terms Clarifies what happens if a bike is booked and never picked up (e.g., full charge, deposit forfeited).
Extension Requests Outlines how riders can keep the bike longer—subject to availability and additional fees.
Change Request Method Requires all changes be submitted in writing (email, form, etc.) to protect both parties.

Tip:

TWICE allows you to automate cancellation windows, change fees, and extensions. If a rider cancels too late or doesn’t show up, your refund policy is already applied.

Agreement and Acceptance

This section makes the entire bicycle rental agreement enforceable. It confirms that the renter has read, understood, and accepted all terms—especially around liability, waivers, and equipment condition.

What to Include

What to Include Purpose
Printed Name and Signature Creates a legally enforceable release agreement and confirms renter has read all terms.
Date of Signing Marks when the rental agreement terms take effect—important for insurance or legal claims.
Initials on Critical Clauses Optional, but reinforces awareness of clauses like injury waivers and equipment return responsibilities.
Digital Signature (if applicable) Supports contactless bookings, especially for advance online reservations or multi-renter groups.

Tip:

TWICE auto-generates a digital agreement with every order. You can print it for in-store signing, or use your preferred external e-sign tool for online bookings. Either way, the contract is attached, stored, and legally binding.

How to Use the Bicycle Rental Agreement Template in TWICE

Once you’ve got your terms nailed down, you don’t want to waste time copy-pasting customer names or printing waiver forms manually. With TWICE, you can create a dynamic bicycle rental agreement that pulls in renter details, bike info, and payment terms automatically, for every single order.

Customizing the template does require some basic familiarity with HTML and CSS, but tools like ChatGPT make it approachable, even if you’re not a developer. Once it’s set up, you’ll have a fully branded, legally sound agreement that scales with your business.

Below is a ready-to-edit HTML agreement you can paste directly into your Documents section in TWICE. Simply update the placeholder content and refine the Terms and Conditions to align with your own policies.

<html>
<head>
<style>
 body {
   font-family: Arial, sans-serif;
   font-size: 12px;
 }
 .container {
   width: 92%;
   max-width: 600px;
   margin: auto;
   padding: 32px 16px;
   color: black;
 }
 h2 {
   font-size: 16px;
   margin: 24px 0;
 }
 table {
   border-collapse: collapse;
   width: 100%;
 }
 table, td, th {
   border: 1px solid #e8e8e8;
   padding: 6px;
 }
 .order-table {
   font-size: 10px;
   text-align: left;
   margin: 16px 0 0 0;
   padding: 6px;
 }
 .signature-line {
   margin: 48px 0px;
 }
 .total-info {
   margin-top: 16px;
   margin-bottom: 16px;
 }
 .sm-font {
   font-size: 10px;
 }
 .pricing-row {
   display: flex;
   flex-direction: row;
   justify-content: space-between;
   align-items: center;
 }
 @media print {
   .pagebreak {
     page-break-before: always;
   }
 }
</style>
</head>
<body>
<div class="container">
 {{#if store.logo}}
   <img style="width: 15%; height: 100%" src="{{store.logo}}" alt="logo" />
 {{/if}}
 <h1>Bicycle Rental Agreement Template</h1>
 <p style="color: red;"><strong>NOT TO BE USED IN COMMERCIAL PURPOSES</strong></p>
 <p><strong>Order ID:</strong> {{order.orderId}}</p>
 <div style="display: flex; justify-content: space-between; gap: 16px;">
   <div class="left" style="flex: 1;">
     <b>Rental Company</b><br />
     {{store.name}}<br />
     {{store.address}}<br />
     {{store.phone}}<br />
     {{store.email}}<br />
   </div>
   <div class="left" style="flex: 1;">
     <b>Renter Information</b><br />
     {{order.liablePerson.firstName}} {{order.liablePerson.lastName}}<br />
     {{order.liablePerson.email}}<br />
     {{order.liablePerson.phone}}<br />
   </div>
 </div>
 {{#each order.persons}}
   <h2>Product Details</h2>
   <table class="order-table">
     <thead>
       <tr>
         <th>Products</th>
         <th>Rental Dates</th>
         <th>Rental Fee</th>
         <th>Security Deposit</th>
       </tr>
     </thead>
     <tbody>
       {{#each products}}
       <tr>
         <td>{{productName}} {{#if variantNames}} - {{#each variantNames}}{{name}}{{#unless @last}} - {{/unless}}{{/each}}{{/if}}{{#if productCodes}} ({{productCodes}}){{/if}}</td>
         <td>{{formattedDate}}</td>
         <td>{{pricing.subtotal}}</td>
         <td>{{#if pricing.deposit}}{{pricing.deposit}}{{else}}-{{/if}}</td>
       </tr>
       {{/each}}
     </tbody>
   </table>
 {{/each}}
 <div class="total-info">
   <div class="pricing-row">
     <b>Total</b>
     <b>{{order.pricing.total}}</b>
   </div>
   {{#each order.pricing.taxes}}
     <div class="pricing-row">
       <span>Tax: ({{rate}}%)</span>
       <span>{{price}}</span>
     </div>
   {{/each}}
   <div class="pricing-row">
     <span>Paid</span>
     <span>{{order.pricing.paid}}</span>
   </div>
   {{#if order.pricing.leftToPay}}
     <div class="pricing-row">
       <span>Left to pay</span>
       <span>{{order.pricing.leftToPay}}</span>
     </div>
   {{/if}}
   {{#if order.pricing.deposit}}
     <div class="pricing-row">
       <span>Deposit</span>
       <span>{{order.pricing.deposit}}</span>
     </div>
   {{/if}}
 </div>
 <h2>Signatures</h2>
 <p>By signing below, the renter confirms they have read, understood, and agreed to the terms outlined in this rental agreement.</p>
 <div class="signature-line">
   <p>Signature: ________________________________ Date: _____________________________________</p>
   <p>Name: {{order.liablePerson.firstName}} {{order.liablePerson.lastName}}</p>
 </div>
 <div class="pagebreak"></div>
<h2>Terms and Conditions</h2>
<p><strong>1. Equipment Ownership:</strong> All bicycles and accessories provided remain the sole property of the rental company. The renter may not sell, sublease, loan, or otherwise transfer use of the bicycle to any third party without written consent. Each rental bicycle is to be used only by the individual listed on this agreement.</p>

<p><strong>2. Rental Period:</strong> The rental period begins at the time the bike is released and ends at the specified return time. Late returns beyond the agreed return window may incur a late fee per hour or per day as outlined in your order summary. Early returns are accepted but do not warrant refunds. All extensions must be requested in advance and are subject to availability.</p>

<p><strong>3. Payment and Security Deposit:</strong> All rental fees must be paid in full before the release of the bicycle. A security deposit may be required at the shop’s discretion. The deposit will be refunded within 7 business days, provided the bike and accessories are returned in the same condition. Any deductions for repairs, cleaning, or loss will be detailed in the final invoice.</p>

<p><strong>4. Proper Use and Rider Responsibility:</strong> The renter agrees to operate the bicycle responsibly, in accordance with all local traffic laws and road conditions. Use of the bike is restricted to paved roads or authorized bike trails unless otherwise specified. Use on rough terrain, curbs, stairs, or off-road areas is prohibited. Riders must be in good physical health and wear protective equipment (helmets are strongly recommended or may be required by law).</p>

<p><strong>5. Condition of Equipment and Return:</strong> Each bicycle is provided in proper working condition and will be inspected with the renter before departure. The renter agrees to return the bike in the same condition, excluding normal wear such as dust or surface scuffs. Charges may apply for bent rims, broken spokes, damaged frames, or missing components. Any damage must be reported immediately upon return or during use if severe. Repairs will be billed at regular shop rates.</p>

<p><strong>6. Damage, Loss, and Theft:</strong> The renter assumes full responsibility for the bicycle during the rental duration. This includes damage, theft, or property loss, regardless of cause. If the bicycle is lost or stolen, the renter agrees to cover the full replacement cost. In case of theft, a police report is required. Damage waivers, if offered and accepted, cover minor issues but do not apply to gross negligence, intentional damage, or improper use.</p>

<p><strong>7. Liability and Waiver of Claims:</strong> By signing this agreement, the renter acknowledges and accepts all risks associated with riding bicycles rented from the company. These risks include but are not limited to: falls, collisions, equipment failure, weather, traffic or road conditions, interaction with wild animals, and personal injury such as head injury, spinal trauma, or other severe injury. The renter agrees to hold harmless, indemnify, and specifically release the rental company, its employees, and owners from all liability, claims, and expenses arising out of any incident or accident. This release is a legally binding document and extends to all injuries or damages, including those resulting from the negligence of the rental company.</p>

<p><strong>8. Cancellations and Modifications:</strong> Cancellations made at least 24 hours before the start of the rental are eligible for a full refund. Cancellations within 24 hours may be charged up to 50% of the rental fee. No-shows are non-refundable. Rental extensions must be submitted in writing and approved in advance. Changes to date, rider, or equipment are subject to availability.</p>

<p><strong>9. Legal Enforcement:</strong> This rental contract constitutes the entire agreement between the parties and overrides all prior communication. If any provision of this agreement is found unenforceable, the remaining clauses shall remain in full force. Disputes will be governed under the rental company’s jurisdiction and subject to applicable local law.</p>

<p><strong>10. Signature and Acceptance:</strong> By signing this contract or submitting payment, the renter confirms they fully recognize and accept all terms listed in this release agreement, including responsibility for the equipment, waiver of claims, and return of the bike in undamaged condition.</p>
 </div>
</body>
</html>

Here's how the document looks:

The front page of the agreement form lists the parties involved to the agreement, the equipment covered by the agreement, the price and duration details, and the signatures. The layout and content can be modified by adding dynamic or fixed sections. In this contract template, the order ID, customer information, and product and price information are retrieved dynamically based on the order information. No need to fill out forms manually, except for the signatures.
The back of the contract is dedicated to the rental terms and conditions. These T&C for the template are kept very simple. Do not use them as such in your own rental business, but always check your contracts with a professional before using them commercially.

Step-by-Step Setup

  1. Create your TWICE account
    Create a TWICE Commerce account — purpose-built software for bike rental shops.
  2. Add your bikes and rates
    Enter your product catalog: make, model, sizes, accessories, and pricing. This information is automatically fed into your agreement.
  3. Go to Settings → Documents
    From your dashboard, open the Documents section. You can edit the default agreement or create a new one.
  4. Paste your HTML agreement
    Use the template provided in this guide. TWICE will populate it dynamically with:
    • Customer name and contact info
    • Bike model and order details
    • Rental period, security deposit, payment status
  5. Customize as needed
    Update the Terms and Conditions to match your local laws and shop policies. Want to change the layout or styling? Use HTML/CSS or ask ChatGPT for help.
  6. Sign, send, and store
    Each agreement is attached to the order and ready for signature. Print for in-store signing or export to your preferred e-signing tool.

Additional Tips for a Solid Bike Rental Agreement

Even if your contract covers all the basics, these pro tips will help you avoid edge-case issues, disputes, and paperwork headaches—whether you're renting a dozen cruisers or a single high-end e-bike.

1. Be Blunt About Responsibility

Don’t assume renters know what “normal wear” means. Spell it out: bent rims = damage. Dusty tires = not a big deal. State that components replaced due to misuse are billable.

2. Make the Waiver Unmissable

The most important part of your bicycle rental agreement is the release of liability. Highlight it, bold it, get it initialed. If something goes wrong—personal injury, property damage, or worse—it’s your best protection.

3. Keep It Simple and Repeatable

Use the same bike rental contract format for every customer. Don’t reinvent it for group rentals, one-day bookings, or casual riders. Consistency makes training easier and legal review cheaper.

4. Revisit It Regularly

Update your agreement when:

  • You start renting higher-value bikes
  • You add protective equipment to every booking
  • A new staff member finds a gap or common misunderstanding
  • Your insurance carrier suggests revisions

A solid bike rental agreement does more than protect your bikes—it protects your business. It sets expectations, clarifies responsibilities, and gives both you and your customers peace of mind. Whether you're running a high-volume city fleet or a seasonal mountain bike shop, your agreement should be clear, enforceable, and easy to manage.

With the help of this guide and the included bicycle rental agreement template, you can put together a reliable contract that covers everything from security deposits to liability waivers. And with TWICE, you don’t have to start from scratch each time—your documents can be automated, updated, and delivered with every order.

Start your circular business with TWICE