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Leasing Question

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  • Leasing Question

    If you were leasing your horse to a riding school to be a lesson horse. Would you have a clause regarding a specific # of uses per week/month? What other things should be in such a contract?

    Work load is mostly children/beginners doing x-rail hunters.

  • #2
    How many jumping lessons v. flat lessons. Farrier visits can be no more than x weeks apart. XYZ maintenance is required at ABC interval. What happens if the horse becomes unusable for what period of time.


    • #3

      Who pays board
      # of lessons per day/week
      How much jumping per week
      Who provides and pays for meds horse may need
      Who pays vet bills if horse gets sick or hurt
      In what circumstances can horse leave property
      Is horse to be insured for mortality or major medical and who pays premium


      • #4
        Height limit for jumping (I know you say mostly crossrails, but you never know)


        • #5
          In addition to the above, if you are part-leasing the horse to the riding school- who decides if horse is unsound and shouldn't work and how that works for payment. You really want to think this through if your horse will be doing light enough work that "serviceably sound for purpose intended" has really variable mileage. (Think "he played hard last night and is a little sticky this morning but might work out of it and is booked for a walk trot lesson.")

          You also want to make sure you've thought through your exit clauses. If the lessee decides she no longer wants to lease the horse, how much notice does she have to give you before discontinuing? If the horse is no longer usable for reasons of soundness, can the lessee discontinue the lease ahead of the term ending? If so, who pays the vet bills? Who determines if the horse is sound for purpose intended? If you decide the arrangement is no longer working, how much notice do you have to give the lessee before discontinuing the lease?
          "I'm not always sarcastic. Sometimes I'm asleep." - Harry Dresden


          • #6
            Make sure you and your horse are covered liability wise.
            Freeing worms from cans everywhere!


            • #7
              You'll need liability insurance and make sure you have a copy of the barns liability policy as well. I wouldn't expect the lessee to pay any insurance as I would not make them co-beneficiary, I'd either suck up all the insurance premium or factor that in as part of the lease fee. Also like the idea of having an exit strategy for both parties.

              I'd absolutely have it stated in writing that horse is to be used X times a week and if it is determined horse is used more than what is stated it constitutes a breach of the contract and may owner/lessor may terminate the lease immediately upon such knowledge of breach.


              • #8
                I think you should definitely have a clause re frequency of use: lessons per day, days per week, jump lessons per week, max height to be jumped. That said, those type clauses mainly set expectations; they can be very difficult to monitor and enforce unless you or someone you trust is on site and paying attention nearly every day. My observation is that these type limits get thrown right out the window in a lot of lesson programs when a horse is needed and the horse who is already over his limit is the one available.


                • #9
                  I agree with specifying the amount and type of work the horse will do. I think it would be reasonable to discuss up front what kind of a work schedule the person leasing the horse is anticipating and then putting that in the contract. I would also list any care parameters you wish followed. Some horses might have diet, turnout, or medication needs.

                  Also, it's very important to put in writing under what circumstances and how the agreement will be terminated supposing that either party is dissatisfied for some reason. In general, it's nice to have a no fault "out" whereby you can quickly end the lease in a neutral manner should something be amiss. That's a much better scenario than having a six month or year long lease where you have to prove that the trainer was breaking the lease agreement before you can take the horse back.

                  Also, I think it needs to be specified very clearly as to what each party is responsible for WRT veterinary care. If the horse colics or has a serious medical problem, who pays? Who is paying for routine vet care like vaccinations or a minor colic, etc?