What is a conversion in rental terminology?

In rental terminology, a conversion refers to a situation in which the rental company loses control over a rental vehicle, typically when the renter fails to return the vehicle as agreed. This can occur when a renter keeps the vehicle beyond the rental contract without authorization, essentially treating it as their own property. The term underscores the breach of trust and contract between the rental agency and the renter, as the rental company expects to have the vehicle returned at the end of the rental period.

Understanding this concept is crucial for both renters and rental companies, as it highlights potential risks and legal implications surrounding rental agreements. The other options presented do not accurately capture the essence of what "conversion" means in this context. For instance, charging extra fees for late returns is a common practice in rentals, but it does not signify losing control of the vehicle. Similarly, returning a vehicle to a different location might incur additional fees, but it is not related to the definition of a conversion. Lastly, renting a vehicle without proper documentation could lead to other issues, but it does not encapsulate the loss of control over the vehicle itself.