Leasing on O/O?

Why do you want to drop your own Authority...??

 

he or she needs to have their own money to run on ,

 

Forget it...I misread..Sorry...

 

You Can Live Happy with What you have or You Can Wish You Have Never Saw a Truck in You Life.
Every Ticket Every Accident That one of your owner OP's Gets will be Counted against your Authority until you use up all your points.Let alone the Liabilities you will encounter with your insurance. your assets your savings can vanish over night. Most of these carriers that have owner Op's are self insured.Because no one will touch them.and I have not began to mention the IRS problems that you will have to face if you didn't have the proper accountants.Think of your loved ones before you jump in shark infested waters.I hope your first step would be to incorporate before the creditors come to your home looking to clean you out.

 

For fuel, personally I would want them to run on their own money, you can provide a card if you wish, but that is totally up to you. Most owner ops will need a fuel card, as the vast majority seem incapable of handling money responsibly. Insurance, they provide bobtail insurance, you provide the cargo and liability. Trailers, that one can go both ways, personally I would rather that the truck owner also supply the trailer.

If you do decide to lease someone onto you make sure that have a lease agreement, and if they have their own trailer make sure that is listed on there as well.

 

The only thing you need to provide an O/O is authority, liability, cargo ins., and access to loads. If the guy cant figure out how to have enough money for fuel, bob tail ins., IFTA, IRP, then hes not an O/O.

 

You can do the IFTA or the owner operator can have his own account. Most carriers who have owner operators will want owner operators to use the carrier's IFTA. You will need a lease contract. There are certain things that must be in any lease and you can find them on the fmcsa website. If you are a member of OODA, they also have a lease that you can use as a guide. You need to make sure that the owner operator is listed as an independent contractor and that is included in your lease agreement. You can add things to the lease over and above what is required. You will also need to have a driver qualifications file on each driver and a random drug screening program. If you already have your authority, you should already have that in place. You could have a lawyer draw up the lease or do one yourself and have an attorney look it over. As others have states, the only responsibility you have is to provide cargo and liability insurance. You will also need the owner operator to list your company on his cab card. It would be much better if you did not do advances and had the owner operators to run on their own money. There are several fuel cards around, but if you do advances, you will be on the hook for paying for them.

 

Good advise thanks. I too have a crude oil tractor/trailer that I want to lease out and I was told that the lease agreement should be very detailed. Ill check out that website. Any advise on how much I should lease it out for?