Negotiating lease terms--thoughts?

[RileysMom]

Hi all,

Negotiating lease terms is something that has always made me anxious (not sure why since I’m normally assertive) and I need to have a discussion with owner/trainer tonight about my half lease. I’d like for the lease to include a clause allowing me to give 30 days notice for early termination (for a few reasons including the fact that I have not yet jumped the horse because we’re focusing on flatwork and I’m new to the trainer and horse. But when we start jumping , if he’s a bad fit for me, I don’t want to be stuck). Horse is not leaving barn. I’m almost afraid to ask for this, which I know is ridiculous, right? I also tend to worry about money and what would happen hypothetically if I lose my job (I’m anxious in general so these are not probable events, but more the idea). What happens if someone signs a lease with monthly installments and they can’t pay it due to a change in job, etc? Depending on what’s signed, they could be on the hook for the remainder of lease payments but board, etc could would stop right? In other words, a lessor can’t make a lessee continue to pay board, vet, carrier for the remainder of the year, right? The only set fee specified in the lease is the lease fee itself.

Also, please don’t jump on me for “if you’re worried about money or needing to break a lease you shouldn’t be leasing”, etc as these concerns are based in my being anxious and I’m just looking for some information so that I’m not so nervous. I’m not a jerk and treat my horse and trainers well!

[ParadoxFarm]

You have a legitimate question. I don’t think most will jump on you! (I hope).

All my leases have had 30-day notification clauses for both parties. That may not be the norm, but you can agree to have anything put in the lease agreement. Hopefully they’ll be open to it if they find you to be a good leasee. Good luck!

[Backstage]

There are no right or wrong answers, so much often depends on the specific circumstances of both lessee and lessor.

I would not assume that if you were unwilling or unable to continue the lease that you would be off the hook for board, etc. Look at the actual agreement, or have very clear discussions with your trainer and/or horse owner regarding expectations and the “what if”.

Asking for a 30 day termination provision is not unreasonable, but it is not something that the horse owner/trainer will necessarily be willing to agree to. And for entirely valid reasons. For example, in my area, shows are from May-Septemer due to our climate. While you may be able to negotiate a show season lease (often at a higher rate), trainers/horse owners could easily get ‘burned’ by a 30 day termination provision that is triggered in September, leaving a trainer/HO carrying all the costs through the less busy winter season. I know many barns make it clear that a lease or half lease commitment is for a minimum duration to deal with that possible scenario. Many, of course, would be flexible in the event of a serious issue (i.e. job loss), but they would have no obligation to let the lessee out of the lease.

If your primary concern is about ‘fit’, another option would be to prolong the trial period (with you picking up the normal expenses and a pro-rated portion of the lease fee). This would allow you to feel more confident in your decision. That said, if the trainer has other customers lining up behind you for this horse…they may not even be willing to do that.

[findeight]

IME, most of the half leases staying in the barn have had the either side may terminate with 30 days notice clause. That’s essentially a month to month lease. The full leases, that’s full, exclusive use carrying all expenses, usually do not. Typically the half lease client is not in a position to purchase and carry all expenses or they would not be looking to share use and expenses.

Most trainers owning the lease horse staying on the property are in a different position then a private owner as far as going month to month and the trainer will be generating income off the horse the other half of the time. They are far more likely to go month to month on a half lease, may even prefer it so they can continue to use the horse or sell/full lease it if the opportunity arises. Sometimes these are called “school horse leases”, a month to month part lease where the trainer owns it and uses it in lessons the other days or has another client leasing it the other three days.

Anyway…absolutely ask for a month to month with 30 day notice instead of a fixed term lease, especially with a half lease.

[IPEsq]

It is very reasonable for a half lease to be on a month-to-month basis (which would continue unless either side provides the requisite notice to terminate). What expenses / fees are required under the lease for an in-barn, half lease varies. So, be sure all of that is spelled out regardless of the termination question! Some lessors will charge a flat rate to the half leaser, and that is the extent of lessee’s obligations. This may be calculated on the basis of the cost of board, farrier, routine vet, maintaining equipment, and other typical expenses. And then the owner is the one paying board, farrier, etc. This is done especially when the owner wants to have a lot of control over the care, the owner is the one on the boarding contract, etc. But just because that’s common doesn’t mean it’s always done that way.

Ask the owner what terms they want. Raise any concerns you have on those terms. Put together a written contract memorializing what you agree on. Take it one step at a time

[gottagrey]

First, I wouldn’t even consider signing the lease without some sort of trial period - agree to lease the horse on trial for a week or 2

(or more) depending on how often you can get out to ride. If nothing else, take at least one or 2 lessons on the horse first

Second, this is a 1/2 lease so make sure it is delineated what expenses, if any, you are expected to incur such as shoes, vet bills. Also - when did a partial lease to a jr. rider with my horse, I specified if any injury to horse and/or damage/loss of my tack was due to their negligence it was their expense. I would advise the OP to cover themselves in a similar fashion - i.e. if the horse is injured in the field is it the owner or the lessee’s vet bill/stall rest expense etc. In my arrangement, I was responsible for any vet bills unless he injured himself under their care/watch and due to their negligence. Like since they trailered with open 1/2 windows, I required horse be shipped with fly mask, if he got an eye injury while trailering because they didn’t use fly mask= vet expense theirs.

to the OP’s question, absolutely give yourself an escape clause - since it’s a in barn 1/2 lease, 30 days notice for either party to terminate lease, period.

All that being said, when I first got back into riding after college I had an absolutely ridiculously great 1/2 lease arrangement with the BO, lovely horse. Nothing in writing… I did pay for shoes, no vet and I know I leased that mare for well over 5 years.