School rent gear out by type (12)
I believe the answer is:
kindergarten
'school' is the definition.
(thesaurus)
'rent gear out by type' is the wordplay.
'out' is an anagram indicator (out can mean wrong or inaccurate).
'by' says to put letters next to each other.
'type' becomes 'kind' (I've seen this before**).
'rent'+'gear'='rentgear'
'rentgear' is an anagram of 'ergarten'.
'ergarten' put after 'kind' is 'KINDERGARTEN'.
(Other definitions for kindergarten that I've seen before include "Playgroup" , "Where master may be" , "Children's school" , "Pre-school class" , "Pre-school institution for little children" .)