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Tell me about leasing these days...

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  • Tell me about leasing these days...

    I have a mare that I would like to lease out this year.

    She's a nice mare, suited for jumpers or Eq. She's done the jumpers up to 1.40 in the past and done some hunters as well. She was most recently used for someone as a mount for a Pony Club rating.

    I really don't even know where to start on coming up with a value on her. Back when I use to lease, it was all full care leases where there was no lease fee paid. I have heard most people pay 1/3 the value of the horse per year. Is it usually a lump sum or a monthly fee?

    What else is the leaser responsible for? Obviously board, show fees and routine shoing and vet care I would assume...
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  • #2
    If you do a lease for specified period, like 6 months or a year, most of the time, you will want a set, upfront fee. The 1/3 of agreed value is really arbitrary and not etched in stone at all. You can just pick a number, like 5k. The reason you want the fee upfront on a defined time period lease is you don't want the horse turning up in your driveway before the end of that period and you miss out on the money you thought was coming in. You could have kept marketing him to somebody else if you knew in advance they were not keeping it the full agreed upon term. That is much less likely if they paid the whole fee upfront.

    You can also go month to month and get a monthly amount, say 500. That gives each party a monthly opportunity to terminate the lease with 30 days notice. Might also allow you to continue marketing then horse for sale should you desire...long as that is disclosed in the contract.

    IMO charging at least some fee means the leasee (person leasing it from you the leasor), is serious and is able to carry out the financial obligations that come with leasing a horse. Unfortunatly, many who look to lease because they cannot afford to buy lack the funds for proper boading, farrier, vet care and instruction/training. Something a leasor may not realize if they do not require anything up front.

    You do need a proper contract, horse needs to be insured and I sure would not let it go off the property unless I knew and trusted where it was going. sometimes it's best to go thru a trusted trainer in arranging a good lease.
    When opportunity knocks it's wearing overalls and looks like work.

    The horse world. Two people. Three opinions.


    • #3
      Leases really run the gambit across the board. They can be fully customized to whatever works for the owner and leasee.

      I recently leased out my hunter. He's a 3'6 horse, but my lease stipulates that the leasee may only jump up to 3'. I was paid a lump sum lease fee up front, and my lease agreement states that they are responsible for all expenses of the horse including board, farrier, vet, etc. It also requires Mortality and Major Medical insurance, and that they will only file a MM claim if the injury exceeds 1k.

      As a compromise between the month to month and year long agreement, my contract is a year long contract with the option to cancel with 30 days notice (assuming the horse is not under veterinary care for any reason). But, if the leasee does cancel, the fee is non refundable.

      In other words, if the leasee changes their mind, that's fine and they can cancel the lease so as to not have to pay the monthly bills on the horse, but they don't get the fee back. The leasee also cannot use the horse being hurt as a reason to cancel lease (under veterinary care).

      F8 is right that the fee is arbitrary. It does tend to be 1/3 of selling price, but selling prices are also arbitrary. I leased mine for about half of what my trainer thought the market would pull as I liked the situation he was going to be in and I liked the kid that was going to be riding him. Her budget was less than what he was "worth" but me being comfortable with it was much more important than the fee.

      Make sure you're working with someone you trust, and someone who is reputable and familiar with leases.

      Good luck!
      My adventures as a working rider