Thanks everyone for your responses – all VERY valuable!
Ironwood & Hej - I hadn’t thought about making this arrangement into 3 distinct contracts, but that makes great sense: one for the apartment rental (also covering ground rules); one for the boarding; one for labor and compensation. And for others who also say she has to have an outside source of income, I totally agree! I cannot provide full time employment nor could I afford that. That was the first thing I covered when I talked to this lady. She works for her sister’s house-cleaning service, and picks up a couple houses a week. She also has health insurance.
As part of her rent, I’m covering all utilities except phone and anything > $100 electric. I’m running security lights, fans, enough heat/air to keep the tack room comfortable & pipes from freezing, so I have no qualms paying my fair share – first $100. Argzny - As far as privacy, I concur. I have a separate bathroom and small refrigerator in the common tack room. There will be no need to access her apartment except in emergency. The apartment also has a fenced, enclosed patio & small yard for which she’ll be responsible for keeping mowed & kept up – and off my nickel.
Regarding the labor, I really do want to be fair and not burn her out. Khall, OFH, GG - Although it’s been many decades ago now I was on the other side of things, too, when I worked off a garage apt. rent in exchange for kennel help, so I hear your perspective. I’ve already told this lady I will never ask her to do something I haven’t done myself or wouldn’t be willing to do myself. Also in hopes of keeping things from getting too messy, I want to treat this as contract labor – if you don’t work you don’t get paid. Betsyk – I plan to issue a 1099. D’Yankee - I know exactly how much time it takes to do the jobs I’m asking her to do, since I’ve been doing them myself. I have also considered the $/hour vs. $/task. I’m asking her to keep a timesheet – anything that seems to have excessive time applied will be opened for discussion. I’m offering her 2 days off/week, which she was a little surprised by but very appreciative of. Wonders – we loosely discussed schedule, but haven’t really nailed that down yet – I will. 4tH – I hadn’t thought about a petty cash jar but think that’s a good idea to cover gas for mower, etc. I’ll ask that money out be replaced with a receipt in. As far as tools, I have as many gidgets & gadgets & mowers I can afford - always looking for ways to save time, not to mention my back. 
For the board, I went through the breakdown costs of feed/hay, bedding, and labor. Of course, she’ll be doing the labor – but I also pointed out those 2 days off she’ll be off-premise? I will be charging her the same $ for taking care of her horses as I pay her to do mine. And at the end of every month, we’ll settle up the different aspects of the arrangement in separate transactions. What I have made clear to her is the #hours she will need to work to cover her rent & board, and she will have the opportunity to make more given my needs and her schedule.
4tH – I’m going to insert a pretty hefty ground rules clause to address “guests” and grounds keeping. Advanced overnight/weekend guests notice required. I’ve been down that road before. I have a small fishing lake with picnic table and fire pit. I was home one day when all of a sudden 6-7 young men walked up with their fishing poles because “Eli” said it’d be ok. Eli was a guy working for me who I had given permission to fish – but had NO intention of making that offer transferable to 7 guys I had never seen before! Egads! :eek:
I haven’t received quotes for insurance yet, and coverage needed is still very murky for me. Weluvhaha – thanks for mentioning not needing CCC coverage. I’ll find out why ins. agent thought it would be good to have – maybe we should review my situation again.
HPony & PPony – I do want to have an attorney review the contracts, and I want to make them 6-month renewable, both to act as an exit as well as to tweak as needed when new situations arise. I’ll also review with tax preparer. She has been telling me ever since I got out of breeding that I need to make this a working farm again. I hope that boarding a couple horses and renting out the apt. will suffice, but I will go over that with her soon.
Again – thanks for all the responses and feedback! I really appreciate it. It really has helped me focus and detail out what otherwise are just different thoughts swirling around.
I sincerely hope this all works out!