Paid Leases? Fee + board or just fee?

[ThreeTerriers]

Hi all! Sorry if this seems like a stupid question, but I’ve only done half- or full leases where I paid a certain amount each month to cover however much of the horse’s living expenses. In a “paid” lease however, do I pay the year long fee at the beginning of the lease and then am responsible for covering additional living expenses (board, shoes, etc), or is that covered by the initial lease fee?

So say, for a $20k/year horse, do I ONLY pay $20k, or do I pay $20k + monthly board + shoes?

TIA!

ETA that is an offsite lease

[dmveventer]

In an offsite full lease you’ll pay the annual fee to the owner and then you’re responsible for sorting out care expenses yourself wherever you choose to keep the horse. So in your example you would give the owner $20k up front, and then you’d be responsible for paying all the horse’s monthly expenses directly to those service providers as they come up throughout the year, unless otherwise specified in your contract.

[ThreeTerriers]

Sounds good, thank you!!

[fivestrideline]

To clarify - not just board and shoes. It’s the $20k up front plus everything you’d pay if you owned the horse, as in:

• insurance
• board
• farrier
• routine vet
• depending on contract you may be responsible for emergency vet or things like injections
• supplements/Adequan/etc
• purchasing all tack and gear (saddle, bridle, blankets, etc) unless specified otherwise
• lessons/training/shows/clinics
• the list goes on

If you’ve never full leased a horse or owned one in your program, definitely ask for a price sheet and contract before committing to the lease. There can be quite a lot of costs that you’ve not encountered yet since you haven’t been the full owner/leaser of a horse. If nothing else, at least you won’t be surprised!

Exciting stuff! Good luck!

[AskMyAccountant.17]

I would get as much in writing as possible and insure even the smallest of leases. I am on the “lessor” side. For my contract I receive $X amount and require proof of insurance. The lessee is responsible for all care/board/non-emergency but routine vet bills.

Several years ago the horse did do a suspensory. The lease made it very easy on both of our sides as far as how to go about it and communication. My lessors are liable up to the deductible on non-routine emergency medical. Then any extra I am responsible for, and because of the insurance I was not out that much out of pocket. It protected both of our ends.

If the horse requires maintenance, you want in writing what that is and is required. I’m happy to forward my contract that I’ve used a few times.

[joiedevie99]

As others have said, the upfront fee is compensation to the owner for giving up her own use of the horse for the year. It is in addition to all of the normal expenses.

[alyssaequestrian]

I think you may have these terms backwards. Lessor - owner of the horse, lessee - the one “borrowing” the horse

[AskMyAccountant.17]

Thanks, updated.

[ThreeTerriers]

Thanks everyone for the clarification!

@AskMyAccountant.17, yes I’d love to take a look at your contract when you have a chance

[AskMyAccountant.17]

You may need to send me a DM directly as it says your profile is hidden