Lease Terms

[King_Creole]

I am not familiar with leasing and would like some input from the knowledgable minds of COTH.

I am currently looking for someone to lease out my guy for 2015 since I am getting married and moving to a new state. I’d like to keep him in work. I’ve always kept my horses in my back yard so it would have to be an off-site lease for this to work. There are lots of barns in the area that I’m familiar with and would be ok with him going to under trainer supervision.

I don’t want any payment, but I want the lessee to pay for board. What other things should the lessee pay for? Routine vet? Farrier? Deworming? I will definitely get this put in writing.

btw, anyone in the south Louisiana/gulf coast area looking for a fun guy to lease next year

[Daisyesq]

If he’s at home, you may need to go through the trainers at the big barns to make contact with their students. But do be polite but cautious with the Trainers! They may arrange for the lease to go “through” their business, so They will take a lease fee from the client, not you.

Yes, you would want your fee to cover regular shoes, routine vet, supplements. And you should also require one lesson a week with a trainer (or include the “free” lesson in your fee). This will help keep your horse in proper work with a knowledgeable trainer.

You might want to be in control of other vet fees (just so the client doesn’t decide not to do a vet visit/procedure to save money).

[simc24]

I just did something very similar with my horse and signed the lease a couple of days ago. I made my lessee buy a mortality and major medical policy in my name for the horse as well.

I just made sure to put in writing everything that I’d consider a deal breaker. For example, my horse has feet that need to be carefully tended or he will go lame, and so I specified exactly what I required in the contract (IE Must maintain at least front shoes with wedge pads, must be done at least every 6 weeks).

[hunterrider23]

Depends on the horse and what he does.

[King_Creole]

So should the lessee pay for the farrier? Routine vet care? Or should I?

[paw]

[QUOTE=King Creole;7890860]
So should the lessee pay for the farrier? Routine vet care? Or should I?[/QUOTE]

It depends. If you pay for farrier and vet, you retain control over which professional works with your horse. If lessee pays, there’s the chance that you don’t. Of course, you can specify the farrier and vet in the lease contract (highly recommended)… But if you’re getting the bills, you know the service is happening.

In a perfect world, I’d expect the lessee to pay for the routine expenses incurred over the lifetime of a lease, but I’d also only lease to someone in a program with a trainer that I trusted. Leasing to someone not in a program might carry the risk that “routine” stuff didn’t get routinely done.

When in doubt, discuss everything with the potential lessee, and put all the agreed-to terms in a writing that you both sign.

[simc24]

In my situation, my lessee pays all farrier bills and any “non-annual” vet bills. I agreed to pay his annual vaccines, Coggins and teeth floating. I figured I’d be paying it on him if he were sitting in a pasture not working, so I didn’t mind covering that. I also like a particular dentist to do his teeth, and just thought it would be easier to have my personal preferences if I’m paying the bill.

I believe it is fairly normal to expect the lessee to pay ALL vet expenses for the duration of the lease, however.

[kmcnam]

Generally the lessee assumes all costs of the horse. That means routine vet work, farrier, etc to keep the horse in good working order. And even though it’s a free lease include a start and end date in the paperwork. The lease should specify where the horse can be kept, to make sure you trust the professional in charge to oversee the care of your horse. Last thing you want is someone bouncing from place to place with your horse!

If it’s a show horse, you may also want to include a maximum number of shows they are allowed to go to, a max number of classes at that show, and limit on back-to-back weeks of showing.

My jumper was leased out with a requirement for a monthly chiropractic appointment, so it’s really up to you to be as thorough as you want with your horse’s care requirements. Just remember if it’s not in writing you can’t really do anything about it.

[King_Creole]

Thanks for the advice guys. I have a couple people interested. One looks very promising as it’s a professional that I know and the facilities are top notch.

Does anyone have a template lease agreement or example that they would be willing to share? (PM is fine!) I want to make sure I cover my bases properly if this happens.

[SidesaddleRider]

[QUOTE=King Creole;7911076]
Does anyone have a template lease agreement or example that they would be willing to share? (PM is fine!) I want to make sure I cover my bases properly if this happens.[/QUOTE]

I would highly recommend you have an equine attorney draw up the lease contract for you, rather than just getting one from someone and attempting to modify it for your needs. You really have to have all everything spelled in writing to keep both parties covered, and you might really miss out on something by doing it yourself.

[inca]

Definitely get a good lease contract! There are some sites that you can purchase a contract that has been drawn up by a lawyer.

I would require insurance and usually the lessee pays all costs for the horse (board, vet, farrier, deworming, etc.)

Of course, you can structure it any way that both parties agree to.

In my lease contract, I have a clause where I can terminate the lease if the horse is not being properly cared for. And the lessee can terminate at any time with 2 weeks notice. Be sure to have something in the lease that you are NOT liable if the lessee gets injured or for any property damage caused by the horse while being leased.

And BTW, I am casually looking for a horse to lease to do the Modified Hunters with.

[222orchids]

Things in my lease form, summarized:

1. Name, registration number, breed, gender and markings of horse.
2. Length of the lease term.
3. Lease fee/rent amount; paid up 100% in front, in cleared funds (cashier’s check or wire transfer)
4. Commission, if applicable; who pays and how much.
5. Use; what can the horse be used for; limits of jump height; who can ride it.
6. Trainers; if applicable, prohibit change of trainer during the term w/o your approval.
7. Care and maintenance: stabling, adequate food and water, clean environment, vet care, hoof care, grooming, turn-out. Lessee to provide records of any third-party care such as vet and blacksmith. All care expenses, whether ordinary or unforeseen, are the responsibility of the lessee. No extraordinary treatment or procedures without notice to you.
8. In case of injury: lease does not terminate. You get notice, consulted on all vet care and updated. If the horse dies due to their negligence or an event NOT covered by your insurance, they pay you the reasonable value of the horse.
9. Pre-lease vet exam: They must get an exam. You get results of the exam. Horse is leased in its as-is condition, w/o any representations as to its health or soundness.
10. Lessee’s representations: Lessee will not allow or cause any lien, charge or other encumbrance to be asserted against the Horse or Lessor’s ownership thereof; Lessee has the ability, knowledge and skill necessary to care for and maintain the Horse in good physical condition; and Lessee shall not sell, re-let, transfer or relocate the Horse without the express written consent of Lessor.
11. Insurance: You obtain a policy in advance and they pay you the premium for that, in addition to the lease fee.
12. Indemnity: They waive all claims for loss or damage arising out of the lease of this horse and hold you harmless for any claims raised by third parties who might suffer loss (e.g., if someone gets bit, kicked, etc.). Your state undoubtedly has some statute that allows for a disclaimer for losses arising to this “inherently dangerous activity”; put this in, in bold print. PM me if you want a copy of the Florida language that I use.
13. Special waivers will apply if the lessee is the parent of a minor child that is going to be the rider. This might vary by state.
14. Default: If they default on the lese terms, they immediately surrender the horse and you have all legal rights to pursue any available remedies.
    15: Surrender of horse at end of lease term: Horse comes back at lease-end and if not, a $200/day fee applies; return whatever tack was supplied with the horse too. New Coggins report 30 days before returning the horse at the end of the term.
15. Your access: you have “visitation” rights.
16. No liens. Get the barn owner to sign the lease also, specifically to acknowledge it has no right to put a stablemen’s lien on the horse if the lessee fails to pay the board.

That’s the checklist from my lease form.

[pattnic]

I purchased a lease agreement template from Equine Legal Solutions, but even then, I had to add amendments to and strike clauses from it. I second the suggestion of working with an equine attorney.

[King_Creole]

Once again, thanks everyone. COTH is full of knowledge. I have a much better idea of how to proceed now!