Our old camping buddies started loaning their HTT to their dau and SIL. Every time, repeat EVERY time, it came back with something broken, missing, whatever. Either the dau didn't realize or just didn't say anything and the SIL is Mr. Irresponsible, they usually didn't find these things until they opened up to clean and get ready for their own trip. Not happy. But also ones to never learn or just never deny, they continued this until they got into boating. Repeat all of the above with the boat. They finally told these "kids" that they could have either the trailer or the boat. They chose the boat. Personally, DH and I would have addressed this the first time and given them clear reasons for why they couldn't borrow it again...."don't ask". Yes, the dau did have camping experience and they walked them through everything before the first loaning.
This is a new trailer. I would nicely explain that this is just something you don't do. Depending on the plans, we MIGHT offer to pay the rental for one trip to see if they might be interested in buying their own trailer.