Leasing out a horse farm

[WalkerAA17]

Hi all,

I am considering leasing out my horse farm to a local trainer. It’s become too much to handle since it’s not my full time job. I’m interested in hearing from those who have leased farms before about what the average costs were. I’ve already spoken with a lawyer for tentative contract and stipulations, I’m just curious to talk to people who have leased and been the facility leasing. Thanks!

[luvmyhackney]

No advice but I might be in the same boat in the spring. I’ve been searching some old threads and some advice others gave it you search my post on buying my farm.

[mmeqcenter]

Average costs will vary wildly depending on location, you may want to update your post title with your location for better responses.

Are you leasing the entire property house included (if there is one), or just the barn/horse facilities while you yourself will be living in the house on the farm?
Are dry stalls a common offering in your area, and if so, what are the average prices?

[nsh]

I’ve leased my farm before and it was an experience! First, check your state/county laws. I found out the hard way, person leasing my property brought emaciated horses. I received phone calls from several neighbors telling me I needed to come to the farm immediately. It was horrible. I took pictures, called the county humane society, we documented everything. County asked me not to evict because they new the person well and had lost track of her. I agreed. The County then informed me that even though I was leasing the property I needed a boarding license AND that the horses were my responsibility because they were on my property. We agreed to keep in close contact given the circumstances. Fast forward, everything worked out and the women did, with much encouragement, take care of the horses.

So, my advise is to be very specific in your lease. I now state how many horses may be kept on my farm so my fields don’t become over grazed. For instance, I have a line that reads… Rent. During the Lease Term, the Tenant agrees to pay to the Landlord as rent (the “Rent”) for the Leased Premises $_____ per month, plus additional rent of $250 for each horse housed above 2 on Leased Premises, subject to Section 15 of this Agreement. Tenant agrees to house no more than 8 horses on the leased premises.

I don’t allow any modifications, hooks, cross ties, nothing without my authorization. If you have an arena, I would state how often the arena must be dragged to maintain footing. Are you suppling any equipment? If so, you need to state maintenance requirements in the lease and request proof maintenance has been performed. How will the manure be disposed of and where will it be kept, is there a designated area?

Below is some language I have in my lease:

Insurance. Landlord shall not obtain nor carry insurance that covers any of Tenant’s belongings or livestock. Landlord highly recommends that Tenant independently purchase: (a) insurance against loss or damage by all risks commonly included in extended coverage policies written in Maryland; (b) insurance against loss or damage to the Tenant’s property located on the Leased Premises; and © insurance covering damages and/or injuries caused by livestock owned or housed on Leased Premises by Tenant.

Landlord shall not be liable to Tenant, Tenant’s family, invitees, licensees, and/or guests for damages not caused by Landlord or Landlord’s agents. Landlord will not compensate Tenant or anyone else for damages caused by any other source whatsoever, or by Acts of God.

12. Repair and Remodeling. The Tenant accepts the Leased Premises in its present condition waives any defects in the Leased Premises and acknowledges the Leased Premises are satisfactory and suitable for the purposes for which same are leased. The Tenant agrees to take good care of and maintain the Leased Premises in good condition. The Tenant agrees that no remodeling, installations, or other changes will be made to the Leased Premises at any time without the prior written consent of the Landlord.

13. Duties and Responsibilities. Tenant shall: [LIST=1]

Keep that part of the premises which Tenant occupies and uses as safe, clean and sanitary as the condition of the premises permits;

Dispose from Tenant's barn and paddock areas all garbage, rubbish and other waste in a safe, clean and sanitary manner,

Not deliberately or negligently destroy, deface, damage, impair or remove any part of the premises or permit any person, animal or pet to do so;

Not engage in conduct or allow any person or animal or pet, on the premises with the express or implied permission or consent of Tenant, to engage in conduct that will disturb the quiet and peaceful enjoyment of the premises by other tenants;

Comply with any covenants, rules, regulations or ordinance issued or promulgated by Landlord or any rental authority in accordance with applicable Maryland law.

Not engage in criminal activity that threatens the health, safely right of peaceful enjoyment of the premises by other tenants or is a danger to the premises, and not engage in any drug-related criminal activity on or near the premises either personally or by any member of Tenant's household or any guest or other person under Tenant's control.

Notify Landlord in advance if Tenant will be away from Leased Premises for seven (7) or more consecutive days. During such absence, Landlord may enter the premises at times reasonably necessary to maintain the property and inspect for needed repairs. [/LIST] Tenant agrees that any violation of these provisions shall be considered a breach of this Lease.

14. Disclaimer of Security Warranties: Landlord, Landlord’s agents or employees make no warranties, guaranties or representations regarding the security of the Premises and any such warranties and representations, whether expressed or implied, are hereby disclaimed. Tenant hereby agrees and acknowledges that Tenant and occupant(s) shall have the exclusive responsibility of protecting the Premises, Tenant(s), occupant(s) and Tenant’s guests from crime, fire, and other danger. Landlord shall not provide and shall have no duty to provide any security devices to Tenant, Tenant shall look solely to the Public Police Force and other forms of Public Safety for protection. Tenant agrees and acknowledges that protection against criminal action is not within the power of Landlord, Landlord’s agents or employees, and though Landlord, from time to time, may provide crime deterrent services, those services cannot be relied upon by Tenant and shall not constitute a waiver or in any manner modify, the above agreement Upon Tenant’s reasonable request, Landlord shall consider permitting Tenant to install fire safety and/or crime deterrent devices, provided such devices do not damage the Premises, and create danger.

15. Pets. No pet, animal, bird, reptile or other pet will be kept on the Leased Premises without written permission from the Landlord.

The housing of horses shall be allowed with the express written permission of the Landlord and under the following terms and conditions (Tenant shall initial next to each item):

15.1 ___Description of Horses. Only the horses listed on the attached page, titled Description of Horse(s) shall be allowed to be permanently or temporarily on the Leased Premises.
15.2 ___Tenant shall provide adequate feed for normal and reasonable care required to maintain the health and well-being of the horse.
15.3 Tenant shall be solely responsible for proper exercise of the horse.
15.4 [U][/U]Tenant may store certain tack and equipment in the loafing shed. Landlord shall not be responsible for the theft, loss, damage or disappearance of any tack or equipment or other property stored on the Leased Premises or in the loafing shed.
15.5 _____Tenant is responsible for maintaining reasonable care of horse’s feet and will maintain a consistent schedule of shoeing and or trimming. Tenant is responsible for maintaining a reasonable de-worming program.
15.6 _____Tenant agrees to have horse immunized annually for Eastern/Western Encephalitis, rabies, tetanus and rhinopneumonitis, and twice annually (spring and fall) for West Nile, and influenza. Owners shall have horse tested for Coggins infection and all other diseases or infections required under the Maryland Health Certificate. Owner agrees to provide evidence to Landlord of current immunizations, as detailed in this section along with a Maryland Health Certificate. Immunizations must be current prior to horse being housed on Leased Premises.
15.7 _____ Tenant agrees to have horse monitored or checked at least once daily. Should Landlord notice that horse is ill or not properly maintained, Landlord will attempt to contact Tenant to address issue. However, if Landlord is unable to contact Tenant or if the well-being of the horse requires immediate attention, Landlord may take necessary action at the expense and liability of Tenant.
15.8 _____ During the time that the horse is kept or housed at the Leased Premises, Landlord shall not be liable for any sickness, disease, astray, theft or death or injury which may be suffered by the horse or any other cause of action whatsoever, arising out of the horse being located on the Leased Premises. This includes, but is not limited to, any personal injury or disability the horse may cause or receive while on the Leased Premises. Tenant fully understands that Landlord does not carry any insurance on any horse for any purposes, and all risks and liability connected with horse being on Leased Premises are to be borne by the Tenant.
15.9 _____ Tenant agrees to hold Landlord harmless for any claim resulting from damage or injury caused by horse to anyone and agrees to pay any expenses, including attorney fees incurred by Landlord in defense of such claims.
15.10 _____ Tenant acknowledges there are inherent risks associated with equine activities such as described below and hereby assumes all risks associated with participating in such activities. The inherent risks include, but are not limited to the propensity of equines to behave in ways such as running, bucking, kicking, shying, stumbling, rearing, falling or stepping on, that may result in injury, harm or death to persons on or around them; the unpredictability of equine’s reaction to such things as sounds, sudden movement and unfamiliar objects, persons or other animals; certain hazards such as surface and subsurface conditions; collisions with other animals; the limited availability of emergency medical care; and the potential of a participant to act in a negligent manner that may contribute to injury to the participant or others, such as failing to maintain control over the animal or not acting within such participant’s ability.
15.11 _____ Tenant warrants that he/she owns or leases the horse and that there are no liens against the horse, express or by law.
15.12 _____ Tenant acknowledges that Tenant has a duty to immediately report to Landlord any disrepair of the paddock or corral area; or damage or dangerous situation that may result in escape or injury to a horse or person.
15.13 _____ Tenant acknowledges that Landlord has the right to enter any portion of the Leased Premises, including paddock or corral area for maintenance, repairs, mowing, spraying or other reasons. When possible, Landlord will give Tenant advanced notice of need to enter Leased Premises.
15.14 _____ Tenant acknowledges that if Tenant’s horse has a tendency to ride the fence, Landlord may require Tenant to install hot wires or take other reasonable action to eliminate such actions.
15.15 _____ Tenant may not house horses on the Leased Premises that exhibit hostility or aggressive behavior. If Tenant observes or is made aware of hostile or aggressive behavior in any horses housed on the Leased Premises on any of the adjacent premises, Tenant shall immediately report such behavior to Landlord.
15.16 _____ Landlord is not obligated to secure access to certain areas for Tenant to ride or exercise horse. Tenant acknowledges that such areas may have inherent and or hidden dangers on such premises. Tenant releases Landlord and owner of such property from any and all liability, including, but not limited to persons and horses that may arise and assumes all risks related to entering upon or into such areas or properties.
15.17 _____ Tenant indemnifies Landlord from any and all liability that may arise from Tenant allowing guests, relatives or others to enter upon Leased Premises and other available areas to care for, ride or interact with horse(s) in any manner.
15.18 _____ No stallions shall be kept or housed upon Leased Premises at any time.

Liability. Tenant agrees to protect, indemnify and hold harmless the Landlord from and against all liabilities, obligations, losses, damages, claims, penalties, causes of action, judgments, demands, costs and expenses incurred by the Landlord or asserted against the interest of the Leased Premises arising by reason of: (a) the Tenant’s use of the Leased Premises; (b) any injury to or death of any person or any damage to property located in or on the Leased Premises; © any condition or state of repair of all or any part of the Leased Premises of which Landlord has not been properly notified; (d) any negligence or willful act on the part of the Tenant or any of the Tenant’s agents, relatives, employees, licensees, invitees or subtenants; and (e) any claims or liens against the leasehold estate or Landlord’s interest in the Leased Premises. Tenant will promptly assume all of the burden, cost and expense of defending such action with legal counsel designated by the Landlord. The Tenant will well and truly pay any judgment or settlement which may be obtained as herein provided before any execution issues thereon. The Tenant further agrees to pay all reasonable attorneys’ fees and expenses of the Landlord incurred in enforcing any of the obligations of the Tenant under this Agreement, including the collection of rent or other charges due under this Agreement.

[clanter]

First off, I am not an attorney

Below is some language I have in my lease:

Insurance. Landlord shall not obtain nor carry insurance that covers any of Tenant’s belongings or livestock. Landlord highly recommends that Tenant independently purchase:: (a) insurance

as a suggestion change that “highly recommends” to “required”. Also add that the Landlord be listed as additionally insured. Being listed as additionally insured on the policy will or at least should provided notification if the policy lapses

Secondly, each state’s laws covering liability, attractive nuisances and negligence vary so one should consult an attorney who is familiar with the laws of that state.

[happilyretired]

I own a 15 acre horse facility in Central Florida that I lease to my trainer and his wife. They operate the farm. We’ve known each other and worked together for about 9 years now. The farm was a joint project from the beginning – I agreed to front the capital to purchase the property and develop the facility. The property had been an equestrian facility but it had been run down for years so we had a lot of work to do – tore down the old barn and built a new concrete block barn, a covered arena and a utility building. There was lots of site work to do as well – we put in pastures and had to put in all new perimeter and turnout pasture fencing. Once the property was “horse ready” I leased it to them. My agreement with them was that I would calculate the lease rate to cover all of my out of pocket ownership expenses and build up a reserve for repairs. My horses are there and I pay training board – our agreement is that we have two “arms length” transactions – they pay me to lease the facility and then I pay them to have my horses in training with them. We’re nearly three years into the mission (since we opened) and so far so good. I will say that the foundation of our relationship is that we’ve known each other for years and there is a solid foundation of trust. We have a written lease contract that was reviewed and approved by our respective attorneys. If you have any specific questions feel free to private message me.

[eightpondfarm]

Mannn…i would advise selling. Just sell it outright and if you want a smaller facility, buy what suits you now.