Best Practices, NBSRA, V4I1

Due Diligence

This principle from Johnson holds true in all aspects of life, but can be particularly important in business practices. As we discussed in the last issue, there is a high importance on having a complete and accurate set of paperwork between your company’s RTO provider and your customer. We briefly discussed the different forms that make up a comprehensive set of RTO paperwork.

In this issue, we will highlight a single form and discuss, in detail, the importance of the Landowner’s Permission form and the ramifications your company could face if your RTO provider does not require the documentation.

First and foremost, doesn’t it just make good business sense to have the written consent of the landowner when a customer wishes to place a product on property that belongs to someone else?
Most landowners are likely to say “yes” to anyone willing to show the respect and courtesy of asking permission before placing something on their land.

The Landowner’s Permission form helps to build the relationship of trust between your company and the landowner on mutually agreed upon terms. The entire experience will go smoother if both parties know what is expected throughout the rental term.

The form is designed to grant your company and the RTO provider’s company permission to access the property at any time during the duration of the rental or lease period for the purposes of
maintenance, repair, or pickup of the product. This can then be done without requiring additional permission to access the property.

Many times, landowners have “No Trespassing” signs on their property. If the Landowner’s Permission form is signed and dated, those listed on the form have already been granted rights to
enter the property despite the “No Trespassing” warning posted.

Finally, the Landowner’s Permission form also can state that in the event retrieval of the product is required, the landowner agrees to make no objection to the removal of the unit from the
premises. This may even state in detail to include the landowner granting permission for any movement or removal of objects that may be in the way during retrieval of the product. This
is important to have whether your customer is the landowner themselves, or they rent from someone else.

Every RTO provider is unique in the forms they may require of their manufacturers at time of rental. It is your job as the manufacturer to ensure the paperwork linked to your products and
company encompasses all the possibilities you feel are warranted and need to be addressed. Release of responsibility from damage that may occur in the delivery or pickup of a unit may also be
addressed in the Landowner’s Permission form. If this is discussed at the point of sale, it does not come as a surprise later to the customer should something unforeseen happen.

Just as we discussed in the last issue, it is always better to cover more bases than to find yourself in a sticky situation due to lack of proper, detailed documentation.

When your RTO provider fails to receive adequate landowner permission at the time of rental, it may result in delayed retrieval of a delinquent account or refusal to return property to the RTO
provider or manufacturer, both of which can then lead to legal ramifications and expenses accrued by your company.

In conclusion, failure to receive signed consent on a detailed Landowner’s Permission form can ultimately cost your company valuable time and money down the road. Ensure your company and its RTO provider is doing due diligence from the very beginning.


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April/May 2024