Damage, Loss and Disputes Overview

Hiring equipment through Local Hire Marketplace should be straightforward and secure. However, accidents, damage, loss, theft or disagreements can sometimes occur. This guide explains the steps Owners should take to protect their equipment, document its condition and resolve issues with Hirers fairly.

1. Fair Wear and Tear Explained

(See Fair Wear & Tear Policy for full details)

Equipment naturally deteriorates through normal use. Fair wear and tear refers to the reasonable deterioration that occurs when equipment is being used correctly for its intended purpose.

Fair wear and tear is different from damage caused by misuse, negligence, an accident or failure to follow operating instructions.

Examples of Fair Wear and Tear

  • Minor cosmetic scratches
  • Small scuffs and marks
  • Normal tyre or tread wear
  • Normal wear to handles, grips and controls
  • Gradual blade, chain or cutting-edge wear
  • Minor paint deterioration
  • Normal battery capacity reduction over time
  • General wear consistent with the equipment's age and amount of use

Damage May Include

  • Cracked or broken components
  • Bent frames or structural components
  • Major dents or impact damage
  • Burnt-out motors resulting from misuse or overloading
  • Equipment being operated incorrectly
  • Missing components or accessories
  • Damage caused by using equipment for something it was not designed to do
  • Damage resulting from ignoring Owner or manufacturer operating instructions

Owners should allow for reasonable wear when setting hire prices and should maintain equipment appropriately between bookings.

2. What to Do if Equipment Is Damaged

If your equipment is returned damaged, remain calm and document the issue before arranging repairs.

Step 1 – Inspect the Equipment

Inspect the equipment as soon as reasonably possible after it is returned.

Compare its condition against your pre-hire photographs, videos and inspection records.

Step 2 – Take Evidence

Take clear date stamped photos of:

  • The damaged area
  • The overall equipment
  • Serial numbers or identification markings
  • Missing or broken components
  • The equipment attempting to operate, where safe to do so

Do not operate damaged equipment if doing so could create a safety risk or cause further damage.

Step 3 – Contact the Hirer

Contact the Hirer through Local Hire Marketplace and explain what you have found.

Where possible, give the Hirer an opportunity to explain what happened.

Many damage issues can be resolved quickly when both parties communicate clearly and respectfully.

Step 4 – Obtain Repair Information

Where repairs are required, obtain reasonable evidence of the cost, such as:

  • A written repair quotation
  • Replacement part pricing
  • Technician assessment
  • Repair invoice
  • Replacement value where the equipment cannot economically be repaired

Step 5 – Report the Issue

If the matter cannot be resolved directly with the Hirer, report the damage to Local Hire Marketplace and provide the available evidence.

Do not dispose of damaged equipment or undertake unnecessary repairs before documenting the damage where a claim may be required.

Urgent repairs needed to prevent further damage or address an immediate safety issue should still be documented carefully.

3. What to Do if Equipment Is Lost or Stolen

If equipment is not returned, has been lost or you believe it has been stolen, contact the Hirer immediately through Local Hire Marketplace.

First determine whether there has been a misunderstanding regarding the agreed return time or location.

If the equipment cannot be located:

  1. Keep copies of all communication with the Hirer.
  2. Record the equipment description, brand, model and serial number.
  3. Gather photographs and proof of ownership where available.
  4. Report the issue to Local Hire Marketplace.
  5. If theft is suspected, report the matter to the relevant police service.
  6. Keep the police report or reference number.
  7. Follow any instructions provided as part of the applicable claim process.

Owners should never place themselves in danger attempting to personally recover equipment.

Where you believe equipment has been deliberately stolen, allow the appropriate authorities to handle the matter.

4. Reporting a Safety Concern

Safety concerns should be reported as soon as possible.

A safety concern may relate to:

  • Unsafe operation of equipment
  • Deliberate misuse
  • Dangerous modifications
  • Damage affecting safe operation
  • Safety guards being removed
  • Equipment being used by an unauthorised person
  • Unsafe towing or loading of trailers
  • Failure to use required PPE
  • Suspected tampering with safety systems
  • Behaviour that may place another person at risk

If equipment is returned in a condition that may make it unsafe, do not hire the equipment again until it has been inspected and, where necessary, repaired or serviced.

Where appropriate, have the equipment inspected by a suitably qualified technician.

Owners can report significant safety concerns to Local Hire Marketplace so the circumstances can be reviewed.

If there is an immediate risk to someone's safety, contact the appropriate emergency service or authority.

5. Resolving a Dispute with a Hirer

Local Hire Marketplace encourages Owners and Hirers to first attempt to resolve disagreements directly.

Most disputes can be resolved more easily when both parties focus on the facts and available evidence.

When Communicating with a Hirer

  • Remain professional and respectful.
  • Clearly explain the problem.
  • Provide photographs or supporting evidence.
  • Refer to the agreed booking requirements where relevant.
  • Avoid making threats or personal accusations.
  • Give the Hirer a reasonable opportunity to respond.
  • Keep important communication within Local Hire Marketplace.

Common Disputes May Involve

  • Equipment condition
  • Damage responsibility
  • Cleaning
  • Missing accessories
  • Late returns
  • Consumable usage
  • Additional charges
  • Security deposits
  • Booking requirements
  • Cancellation or refund disagreements

If You Cannot Reach an Agreement

If reasonable attempts to resolve the dispute are unsuccessful, contact Local Hire Marketplace and provide the relevant information.

Local Hire Marketplace may review information supplied by both parties, including:

  • Booking information
  • Listing details
  • Owner requirements
  • Messages between the parties
  • Before-and-after date stamped photographs
  • Inspection records
  • Repair quotations
  • Receipts or invoices
  • Police reports where applicable
  • Other supporting evidence

Owners and Hirers are expected to cooperate reasonably during the dispute review process.

6. Making a Damage or Compensation Claim

If you believe you are entitled to compensation following a hire, submit the matter to Local Hire Marketplace within 48 hours after the hire completion in accordance with the applicable claim requirements.

Information You May Be Asked to Provide

  • Booking details
  • Equipment listing details
  • Description of what occurred
  • Before-hire photographs
  • After-hire photographs
  • Videos where relevant
  • Serial numbers
  • Messages with the Hirer
  • Repair quotations
  • Repair invoices
  • Replacement cost evidence
  • Proof of ownership
  • Police report details for theft
  • Any other information reasonably required to assess the claim

Calculating a Claim

A damage claim should reflect the reasonable financial loss caused by the incident.

Owners should not use a claim to improve or upgrade equipment at the Hirer's expense.

For example, if a repair costs $180, an Owner should generally claim the reasonable repair cost rather than demand the full replacement value of otherwise repairable equipment.

Where equipment cannot reasonably be repaired, factors such as its:

  • Age
  • Condition before hire
  • Original purchase price
  • Current replacement cost
  • Current market value

may be considered when determining an appropriate amount.

Security Deposits

Where a security deposit applies to a booking, the existence of the deposit does not automatically mean the Owner is entitled to keep some or all of it.

Any proposed deduction should relate to a genuine loss associated with the booking and should be supported by reasonable evidence.

The applicable Local Hire Marketplace terms and dispute process determine how security deposits and claims are handled.

Protecting Yourself as an Owner

Good records are one of the best ways to prevent disputes.

For every booking, Owners should:

  • Photograph equipment immediately before handover.
  • Photograph equipment when it is returned.
  • Record existing damage.
  • Record serial numbers where applicable.
  • Confirm all accessories supplied.
  • Use an equipment handover checklist.
  • Provide clear operating instructions.
  • Clearly state pickup and return requirements.
  • Keep servicing and maintenance records.
  • Keep important communication within Local Hire Marketplace.
  • Report problems promptly.

A Simple Rule

Document the equipment going out and document it coming back.

Clear records help protect both Owners and Hirers and make it much easier to determine what happened if something goes wrong.

Working Together to Resolve Problems

Occasional damage and disagreements are an unavoidable part of equipment hire. Local Hire Marketplace encourages Owners and Hirers to communicate respectfully, provide accurate information and work together toward a fair outcome.

Where an issue cannot be resolved directly, Local Hire Marketplace can review the information available and assist in accordance with its applicable policies and terms.

Never make private arrangements designed to bypass Local Hire Marketplace's booking, payment, security deposit or dispute processes where those processes apply.

For further information, Owners should also review the Fair Wear and Tear Policy, Security Deposit Policy, Cancellations and Refunds Policy, Owner Terms and Conditions, and Equipment Safety Guidelines.