Yes, this is definitely a problem with rental equipment. Most rented tools I've used are in bad shape, though still usable on a one-off basis. Rental companies

Yes, this is definitely a problem with rental equipment. Most rented tools I've used are in bad shape, though still usable on a one-off basis. Rental companies tend to charge for excessive damage to the tools (if they bother to inspect the tools upon return). So that can help to align the incentives. But it doesn't work as well with individuals lending to each other. Think of all the bad eBay experiences people have reported. The reputation system was supposed to solve that, but apparently it hasn't. I take good care of my tools, and I wouldn't lend them to a stranger. Especially knowing that I'm not guaranteed payment in the event of loss or damage.