Half Lease Terms? (Cross posted)

[findeight]

My comments refer to school horses used regularly in the lesson programs that can go to some shows at 2’, starter hirses for noobs.

[Libby2563]

@mdp9

The % of the horse’s value is very low. 10% for an annual, 5% for 6 month. Really it’s similar to the maintenance fee some of you mentioned, just in a different form. It sounds like the total amount each month for my program is very similar to the other programs others have described. Based on the ideas given I would maybe move to a maintenance type fee.

I have to say that I don’t see it as very similar…do your $3,000 horses eat less, grow less hoof, and need fewer vaccinations/supplements/whatever than your $5,000 horses?? I think it would be a tough sell and hard to explain to lessees/parents.

What if your lessees talk to people who lease horses at other barns and tell them they are paying a % value fee on a half lease? I think they will be told they are getting scammed.

What if lessees talk amongst themselves and find out that Jimmy is paying less to lease Black Beauty than Jane is paying to lease Ginger, even though at this point in time they’re riding in all the same lessons, classes at shows, etc. Will that seem fair to them?

How are you valuing your horses? A lot of it is in the eye of the beholder. What happens if horses’ values rise and fall over time? If a competent lessee puts a good show record on one of your horses on their own dime, is their lease fee going to increase?

You do need to build in some cushion beyond half of all relevant costs (which I would limit to board, farrier, and routine vet) so this has some financial benefit for you, but I would not call it a % value fee!

[vxf111]

I feel like a percentage of the horse’s value added on to expense costs only makes sense for a full lease when you, in essence, get the horse as yours entirely for the lease period. Not a half lease where by definition you’re sharing with others.

[mdp9]

@findeight

. You want to ding them for half a lameness exam with farm call, sedation and x ray/ultrasound and maybe joint injections?

No, I don’t. Hence why I have not been billing clients for vet visits.

[mdp9]

@Libby2563

What if your lessees talk to people who lease horses at other barns and tell them they are paying a % value fee on a half lease? I think they will be told they are getting scammed.

What if lessees talk amongst themselves and find out that Jimmy is paying less to lease Black Beauty than Jane is paying to lease Ginger, even though at this point in time they’re riding in all the same lessons, classes at shows, etc. Will that seem fair to them?

The rates my clients are paying are very comparable to other similar barns in my area. Just broken down differently, which is why I have been contemplating this question.

And the horses I have been leasing out are all extremely similar in value, so one could view it as a fixed fee. I’m sure the parents talk and I have not had any complaints (or customers leave) about the structure.

[mdp9]

Thanks again for comments!

[Highflyer]

I’ve only seen the flat fee of $250- $500/ month for a half lease. As someone who owns a horse, that seems really appealing.