Leasing A Horse

[RoyalRain42]

I am curious about the experiences of others when it comes to leasing a horse.

As of now, the gelding i am trying to sell (see older topic) has been going well. Quite a few people have come to try him out, nothing serious but there is a bit of interest in him.

But to my surprise i have had quite a few people asking about leasing. Personally, i have never leased out, or leased a horse before. Did not think the area we are in had such a market for it. But it does seem to.

While my preference would be in an outright sale, a lease or a lease with option to buy is not completely out of the question. I just simply need more info and experiences.

Obviously there would be a lot of homework on the person doing the lease. The decision between off sight or on sight. they would not have to worry really about me wanting to ride him or only being able to ride on certain days. Many options to think about and weigh on. Exploring ideas never hurts.

So for those who have leased out horses, was it a good deal for you? Was it something that worked well for you and the horse? What sort of requirements did you have?

Thanks all in advance.

[ladyrider2]

I have leased out horses for a long time and leased myself. Do not let the horse go somewhere else. The lease should pay the bills of the horse, or whatever % they are riding. If someone wants to lease to try out the horse and then start buying on payments, fine, but don’'t let the horse off site until it’s paid for.

Think about what it costs for board, feed, shoing, vet, etc. Average the cost per month. If they are leasing 100%, they pay that. If half, they pay half. You decide how you want it to work, as in use your tack, where they can ride, if they can show, etc.

[WildLittleWren]

I would only ever consider an onsite lease. I have heard horror stories about offsite leases…from starvation to selling the horse out from under the owner. If you do lease, as the poster above said, they cover costs of whatever percentage they are leasing, a full lease is 100% of monthly bills, half lease would be 50% of monthly bills. And get an airtight contract, with all the details laid out so both parties are on the same page.

[Jumping31]

My trainer is currently doing an off-site lease with one of her horses. She also like you originally had plans to sell but went in with a lease. They have a contract for a one year lease and over the course of the year, they pay monthly installments in total of 50% of the horse’s total value. At the end of the year if they want to buy him they will pay the remaining 50%. If they don’t, she gets him back and can do as fit. That being said the leasee is for a nearby trainer’s daughter so she trusts he will be ok offsite. You must be very careful if you agree to do offsite and consider if you will provide tack or cover all medical fees. There’s a lot to consider but if you find someone reputable who is trustworthy and a VERY specific contract it can be very successful.

[SnicklefritzG]

Onsite only!!!

I know more than a few people who sent their horses offsite only to have them return with problems or be noticeably underweight. Even if the terms of a lease dictate vet care and feed schedule and the lessor decides not to follow the agreement, it’s typically not worth pursuing in court just for a few $k or less in your subsequent vet/feed costs.

There are several things you could consider doing if the horse hasn’t sold yet, but people are coming to try him:

1. Offer an onsite trial period. Potential buyer can do a 2-3 week trial period for $X, and if they choose to purchase the horse, their payment for the trial will go towards the purchase price. You can choose to let the horse be shown during this period or not and adjust the trial cost accordingly. That way if they decide not to buy the horse, you aren’t losing out on showing it to other people. I wouldn’t necessarily offer a trial period in the ad, as some people may take advantage of it. I’d offer a trial period if the buyer appears to be someone you feel good about and that you think would be a good match.

2. Do an onsite full or half lease. There are a myriad of ways to handle the arrangements:
   a) free lease where the lessor pays some portion of the horse’s expenses. No lease fee beyond that.
   b) full or half lease plus a modest monthly lease fee, applicable to the purchase price of the horse if they choose to buy it. your local market and horse’s experience and ability will determine how viable this would be.
   c) do a lease for 5 days per week and indicate that the horse will still be available for sale during this time, then adjust the percentage of expenses accordingly. Also include language that gives you the right to schedule a day for the horse to be tried with X days of notice. this could work if you anticipate having a decent number of people try the horse.

[Libby2563]

Hmm, per your other thread you bought this horse as a resale project? I am leasing out my older schoolmaster-type who has a lifetime home with me, because I no longer have time or desire to ride him but I think it’s good for him to stay in work and he has a lot to teach someone else. I’ve also been on the other side of leases and consider them to be a win-win in the right circumstances.

However, if your goal is to sell the horse to free up money for something else, I would not settle for leasing just yet (since you say there has been some interest). If he gets injured while leased out, you will ultimately be responsible for his care, retirement, whatever. His marketability may also be reduced less dramatically if the lessee doesn’t ride him as well as you, creates bad habits on the ground or under saddle, neglects his care in any way, etc.

A trial period for a serious buyer would be another matter.

[bitranchy]

I’ve leased horses from folks a couple of times, and only leased one of my own out once. I think the experience depends on the person, really. When I leased horses, I always paid on time, treated the horses as if they were my own, was in a lesson program, etc. They were all onsite leases. Some folks won’t operate this same way, some folks will. Just like any similar type of situation, say a renter at an apartment building, you can vet them but nothing is foolproof.

If it were my horse, and I intended to sell it, I wouldn’t be inclined take on a lessee. As other users mentioned, injuries, bad habits, neglect can all occur. The horse’s marketability could take a hit. You’re also exposing yourself to a potential problem with the lessee in the event the horse sells and they feel wronged, somehow, despite knowing the horse is for sale going in. It seems like a very possible headache waiting to happen.

If you do decide that a lease would help you with the horse’s expenses until he sells, then proceed with caution. Onsite leases only. I would only permit an off site lease to someone I know very, very well. Even then, there are horror stories you hear. You need to be able to oversee his care and check in with this horse regularly. If you intend to keep him for sale, you need to be able to have access to the barn and the horse to show him. You will need a contract to cover how many days per week the lessee is permitted to ride, how much is to be paid by what day of the month and any late charges associated with missing that date, what the lessee is permitted to do with the horse, whether or not they are to be in lessons, an acknowledgement that the horse is still being advertised for sale and that the lease is effectively terminated upon sale of the horse, and any other termination or liability clauses.

[Scribbler]

From reading the hunter jumper forum, I gather that a high-value horse that is competitive can be leased out for 30 to 50 % of his value per year, if he goes into an approved training/showing program. This lets junior riders move up ranks and get points. This would be let’s say a $100,000 horse being lease for $30,000 per year.

That’s a specific market and there are a lot of safety checks in place. And the high cost of the lease reflects the risks.

Onsite leases for regular horses typically charge a pro-rated percent of the monthly expenses. Lots of riders like this arrangement if their schedule doesn`t allow them to ride every day. Often such riders are required to also take lessons with the regular coach for that owner, or with the owner if the owner is a coach.

Offsite leases for regular horse are often free leasewhere the leaser pays nothing to the owner but assumes all costs for the horse. That would be the arrangement with the least oversite. I would not tend to advise that for a horse that you want to increase the value of, unless you are handing it off to a rider that you know will be able to train it.

An offsite free lease could also be to another coach who wants to use the horse in a lesson program. You would want to know that coach and approve the lesson program, obviously.

If you want to sell the horse, I would suggest selling him now if you can find a buyer at your price.

A horse can increase in value with the right leaser, particularly if he goes into a training program and gets show miles that you are unlikely to put on him yourself. You can say he was in the ribbons all last summer with a 15 year old riderand sell him off as a proven kid`s horse.

But if anything goes wrong, then your horse loses value.

[ljadwin]

Require references from lessee. I’ve leased several horses, all good experiences, but we were really specific with the contract - who pays for what, always wearing helmet, on-site only. And the trainer recommended me and was there to observe my horsemanship. It works great when it works - you get to keep your horse if you don’t have time to ride, and the lessee, hopefully, adds value to the horse as well as to their own riding/horsemanship skills.

[Sugarwells]

This is the green horse that you bought and it had “too much potential”, correct?

I wouldn’t in a million years lease out a green horse. Never off site.

[BatCoach]

I’ve had 2 great leasing experiences. Both were partial leases and on-site.

It was a total win-win since in the first instance, the owner was struggling with health issues and couldn’t ride her nicely bred but ageing (18 y/o) mare enough to keep her in shape. I had recently moved to a new area and didn’t know anyone in the horsey ‘scene’ but didn’t have the $$ to own. I had taken a few lessons with a local instructor who had previously taught the mare’s owner, and kept her personal horse at the same barn as this horse. So I think that it helped that the trainer was able to make the connection and introduced me to the owner. The owner watched me ride her horse in a trial lesson or two and was confident that I was a good match for her sweet horse. Our agreement was that I could ride 3 times a week on agreed-upon days for a fee of $300 a month. I was able to take lessons with our mutual instructor. I had to use her tack and couldn’t change anything about the mare’s maintenance. If the horse fell lame or ill, the owner would be responsible for any charges. However, if I couldn’t ride due to inclement weather or the mare needing a rest day after teeth floating etc my rate would not change.

My other lease was a similar situation, with a horse at the owner’s home who she just didn’t have time for. It was a month to month with the lease fees paid on the first of the month.

Both worked well because the horse was kept at a facility where the owner had full control. Neither owner wanted to sell their horse, but realized that through one circumstance or another that their horse would benefit from having regular exercise from a competent rider who really enjoyed doting upon these horses. The owner kept full control and was in charge of scheduling all regular medical/farrier appointments for the horse. It was their job to let me know when these appointments were happening so I could work my schedule around it so good communication was key. Its also important to know what your leaser’s goals are and if they are going to be taking lessons on your horse or wanting to show. I would recommend a one month trial period or at the very least observe a few rides for any potential lessee to make sure they mix with you and their horse well. Be clear about what is expected in the level of care for your horse from tack cleaning to bathing.

Good luck - leasing can be so fantastic and a real benefit for both parties when it is done correctly (meaning both parties have to be non-crazy, mature people) lol.

[ponysaurus]

I’m probably the only person that ever did a successful off-site lease to own. I had two horses that I didn’t have time to ride. One was a nice, but green, Kentucky Mountain horse. He was sweet but after I had him a while, I realized he was just not “my thing”. I put up an ad on a local horse forum and within a week or two had a prospective home for him as a husband horse. I checked her farm out and talked to her vet and a couple of references. She lived very close to my parents, so I had a couple sets of eyes on him. She kept him for a year and decided to buy him. Win/win. But I realize not every situation is as lucky as this.

[pologirl27]

I think leasing is ideal when you want to keep the horse in the end. If you don’t want to retire the horse yourself, push for a sale. We leased out the same horse twice, because she was a family horse we LOVED but parents went overseas and I was in college. 1st lease she stayed at the previous barn and got her training totally jacked up and ended up falling down and breaking leaser’s leg. We then payed to field board her cheaply before shipping her off to me for a few months at school.

Then we had lease 2 and it was great. She was a bit out of shape still, which actually made her a better candidate for intermediate students at an eventing oriented summer camp. I didn’t know anything about the lady who leased her before, but she had a good reputation. Horse went to her facility and all went well. At the end of the summer we got back the horse (my parents moved back stateside) and she was in good health, more fit and happy.

Realistically, it can be hard to find an onsite lease unless you get really lucky. Most people have their preferred trainer and barn already.

[Palm_Beach]

It’s not uncommon for a horse to not eat good when it moves barns. So when the come back underweight, it’s because they ate less, not because they were neglected.

I always front loaded the payments - I got about 30% of the lease fee up front as a nonrefundable deposit, and then the remainder of the lease fee was split into monthly payments. If they don’t have skin in the game (a nonrefundable deposit) they won’t really commit to the horse.

They might come and try him and everything is perfect, but horses are hard work and you rarely have perfect rides every time, and as the horse progresses in his training there may be bumps in the road. A person who has invested $$ in the horse will try hard to get over the bumps, someone who is just paying a small monthly fee will bring him back.