How to Manage Rental Orders in Odoo 18: Complete Guide
By Braincuber Team
Published on February 28, 2026
A $3.2M equipment rental company we onboarded last year was tracking rentals in a shared Google Sheet. Pickup dates in column D, return dates in column H, and the pricing? A formula so nested it crashed every time someone added a new row. Three double-bookings in one week. $8,700 in lost revenue because nobody knew a projector was already out when they rented it again. Odoo 18's Rental module kills this chaos with real-time availability checks, automated pricing by time unit, and a pickup/return workflow that actually tracks what left your warehouse and what came back. This beginner guide is the complete tutorial.
What You'll Learn:
- How to install and configure the Rental module in Odoo 18
- Setting up rental products with time-based pricing rules
- Creating and confirming rental orders with availability checks
- Managing the pickup and return workflow
- Enabling rental transfers for delivery orders
- Handling late returns and automatic fee calculation
- Generating invoices and printing pickup/return receipts
Install the Rental Module and Configure Products
Before you create a single rental order, the system needs two things: the Rental app installed, and at least one product configured for renting. Skip the product configuration, and you'll be staring at an empty order form wondering why nothing shows up in the product dropdown.
Install the Rental Module
Open the main Odoo 18 dashboard and navigate to Apps. Search for Rental and click Install. Once installed, a new Rental menu appears in your top navigation bar. This module integrates directly with Sales, Inventory, and Invoicing—no extra connectors needed.
Configure a Product for Rental
Go to Rental > Products and either create a new product or edit an existing one. Enable both the Sales and Rental checkboxes on the product form. This makes the product available for both standard sales orders and rental orders.
Set Up Rental Pricing Rules
On the product form, navigate to the Rental Prices tab. Define pricing rules based on time units: hour, day, week, or month. You can add multiple pricing tiers—for example, $50/day or $300/week. Also configure the Security Time field to block the product from being rented back-to-back, allowing buffer time for cleaning, maintenance, or transport between orders.
Security Time Prevents Double-Bookings
We've seen rental businesses skip the Security Time field and then wonder why a returned projector got rented out 15 minutes later—still dirty, unchecked, and missing a cable. Set at least 4-6 hours of buffer time between rentals. Your warehouse team will thank you. *(Your customers will too, when they don't get someone else's mess.)*
Create and Confirm a Rental Order
The rental order is where everything comes together: customer, products, rental period, and availability. Odoo 18 checks product availability in real time against existing bookings, so you'll know immediately if that conference table is already rented out for the dates your customer wants.
Create a New Rental Order
Navigate to Rental > Orders > Orders and click New. Select the Customer, then set the Rental Period by choosing a start date and a return date. Add rental products and their quantities. Odoo automatically validates availability against existing bookings to prevent scheduling conflicts.
Confirm the Rental Order
After filling in all details, click Confirm to validate the rental order. The status changes from Quotation to Sale Order, and the state updates to Booked. At this point, your inventory team can start preparing the items for pickup or delivery.
Quotation = Draft rental order, not yet confirmed
Booked = Confirmed order, items reserved for the customer
Picked-up = Customer has collected the rental items
Returned = Items returned back to your warehouse
Invoiced = Payment generated based on rental period
Handle Pickups, Returns, and Delivery Transfers
This is where most manual rental tracking falls apart. Your Google Sheet says the item was "picked up" but nobody updated the row. Three days later, a second customer shows up expecting the same item. Odoo 18 forces the status update at each stage, so there's no ambiguity about what's out and what's back.
Enable Rental Transfers
Go to Rental > Configuration > Settings and activate the Rental Transfers option. This enables delivery order creation for rental products, so you can track outbound and inbound shipments through the standard Inventory module. Without this, you're limited to walk-in pickup only.
Process the Pickup
When the customer arrives to collect items, open the rental order and click the Pickup button. A confirmation pop-up appears—click Validate to process it. The order status updates to Picked-up, and inventory quantities reflect the items as currently rented out.
Process the Return
When items come back, open the rental order and click Return. Validate the return through the pop-up form. The order status changes to Returned, and the items become available in your inventory again for the next rental booking.
Rental Transfers
Create delivery orders for rental items that need to be shipped to the customer's location. Track outbound and inbound movements through standard warehouse operations.
Calendar View
Use the Calendar View to get a visual timeline of all current and upcoming rentals. Spot scheduling conflicts before they happen and see exactly which items are out on which dates.
Pickup & Return Receipts
Print pickup and return receipts directly from the rental order using the gear icon dropdown. Hand these to customers as proof of collection and return—saves arguments later.
Late Return Detection
Odoo monitors expected return dates in real time. When items come back late, the system automatically calculates late fees based on your configured pricing—no manual tracking or calendar reminders needed.
Invoice Rental Orders and Handle Late Fees
Invoicing is where rental businesses bleed money quietly. You rent out 14 chairs for a weekend event, the customer returns them Tuesday, and nobody catches the extra 2 days because the invoice was generated at pickup. Odoo 18 lets you invoice before, during, or after the rental—and it auto-calculates late fees when items come back past the expected return date.
Create an Invoice
Open the rental order and click Create Invoice. Choose your invoicing method: bill before the rental starts, on a recurring basis (monthly), or after items are returned. Confirm the draft invoice to finalize it. The invoice amount is calculated based on the rental pricing rules and the actual rental duration.
Handle Late Returns and Automatic Fee Calculation
Go to Rental > Configuration > Settings to configure late return fee rules. Odoo monitors the expected return date on every active rental. When items are returned past the scheduled time, the system automatically calculates late fees based on your pricing configuration and adds them to the invoice. No manual math, no missed charges.
| Invoicing Method | When to Use | Risk |
|---|---|---|
| Before Rental | High-value items, new customers, event equipment | Requires refund processing if rental is shortened |
| During Rental (Monthly) | Long-term rentals, recurring agreements | Customer may dispute mid-period charges |
| After Return | Trusted clients, condition-based pricing | Cash flow delay—you've already incurred costs |
| Late Fee Auto-Calc | All rentals with a return deadline | Customer surprise—communicate the policy upfront |
Product: Conference Projector (BenQ MH733)
Rental Price (Day): $75.00
Rental Price (Week): $420.00 (saves $105 vs daily)
Rental Price (Month): $1,450.00
Security Time: 6 hours
Late Fee: $90.00/day (120% of daily rate)
Example Order:
Customer: Acme Events LLC
Rental Period: Feb 10 - Feb 14 (4 days)
Total: $300.00
Returned: Feb 16 (2 days late)
Late Fee: $180.00
Final Invoice: $480.00
Print Receipts at Every Stage
Click the gear icon on the rental order and select Pickup and Return Receipt to generate printable documents. Hand these to customers at collection and return. We've settled 3 disputes in the last year purely because we had a signed pickup receipt with the item list and condition noted. *(No receipt = your word against theirs.)*
Frequently Asked Questions
How do I install the Rental module in Odoo 18?
Go to Apps, search for "Rental," and click Install. The module adds a Rental menu to your navigation and integrates with Sales, Inventory, and Invoicing automatically.
Can I set different rental prices for daily, weekly, and monthly periods?
Yes. In the product's Rental Prices tab, add multiple pricing rules for hour, day, week, or month. Odoo applies the best matching rate based on the rental duration.
Does Odoo 18 automatically calculate late fees for overdue rentals?
Yes. Enable late fee settings under Rental > Configuration > Settings. Odoo monitors return dates and auto-calculates extra charges when items are returned past the deadline.
What is Security Time in Odoo 18 Rental?
Security Time is a buffer period between two rental orders for the same product. It blocks availability to allow for cleaning, inspection, or transport. Configure it on each product's rental pricing tab.
Can I create delivery orders for rental items in Odoo 18?
Yes. Activate Rental Transfers under Configuration > Settings. This lets you generate delivery orders for rental products and track shipments through the Inventory module.
Need Help Setting Up Odoo 18 Rental?
Our team can configure your rental products, set up pricing tiers, build your pickup/return workflow, and integrate invoicing so you stop losing money on untracked rentals and late returns.