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Lease question...

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  • Lease question...

    Hi all,

    Haven't been on the boards much lately, ugh working too hard! I've missed reading about all the drama lamas! It's good to be back!

    I wanted to ask for some much needed advice from the fabulous COTH community.

    I am going to be leasing my eq horse for 6 months to a client at our barn. They are paying all expenses, lease fee, etc.

    However, they want to be able to give a 30 day notice to terminate the lease. (for any reason.)

    This doesn't sit well with me because in a sense for them it is like having a month to month lease, and my goal was to get him leased out for 6 months and not have to worry.

    I have never run across this before, personally, because the last time I leased him it WAS month to month, and I hated the instability of not knowing if they were going to give notice each month.

    Can anyone tell me what the industry standard is? I have a call in to my trainer, but would love some valuable COTH advice.

    Thanks all

    PS Yes, I have a great lease contract, my hubby is an attorney. Just need to sort this part out!
    I used to collect lunchboxes...now I collect horses...

    "Are you hopping today?" ....fave quote from Mr. lunchbox

  • #2
    I wouldn't say its common, but I have seen leases where the horse can be returned for any reason on 30 (or even 15) days notice.

    Two things you can add into the contract if you want to allow this option, but take less risk...

    1. Lease fee paid up front, no portion refundable if horse returned early. Owner covers expenses after horse is returned.

    2. Lease fee paid up front, no portion refundable if horse returned early. Lessee pays a pre-determined amount to cover expenses for each month left in the lease when the horse is returned.

    Comment

    • Original Poster

      #3
      thank you, that is very good food for thought!

      We have agreed on ALL of the other parts of the lease....just got this request and it does not sit well with me.

      Would love more opinions or experiences !

      TIA.
      I used to collect lunchboxes...now I collect horses...

      "Are you hopping today?" ....fave quote from Mr. lunchbox

      Comment


      • #4
        I have a horse which I am leasing out (same barn, same trainer.) We have a 6 months lease, with the 30 days notice to terminate the lease. It applies to both parties envolved, and is fine by me. From my perspective- the horse is technically not for sale, but if a dream buyer comes up and makes a good offer, I want to be able to get out of the lease, and it seems fair to them, because things happen, she has 3 kids and might not be able to afford the lease one day :O

        Comment


        • #5
          I'm assuming your horse is going out on a full-lease to another facility, so you will have no expenses during the 6 months?

          I think the 30-days notice (rather than forcing the full 6 months) is really to your (owner's) advantage. If something isn't working out, wouldn't you prefer your horse BACK, than risk it sitting somewhere not being cared for?

          While, sure, you might end up having the horse back and taking it's expenses back on, that seems safer in the long run. If you force the lessee to keep the horse for the full 6 months (and they don't want to), you might end up with a horse that hasn't been well cared for because they couldn't afford it anymore.

          I assume, also, there is something written in to your lease about what happens if the horse gets injured? Who has to pay / Who has to rehab / etc...

          I've done heaps of part-leases over the years (but never a full-lease where the horse went off-site). The lessee (rider) usually has to give 30 days notice to quick (giving the owner a chance to find a new lessee). The leasor (owner) can terminate the agreement WITHOUT notice (to protect the safety of the horse), but obviously would try to give notice (ex: I'm going to put the horse up for sale starting on July 1st).

          Comment

          • Original Poster

            #6
            Thank you for everyone's thoughts.

            My horse is staying at the barn where I ride, so I will be able to make sure all is going well. He is a barn favorite, and if something was up I would be notified.

            Excellent points. Thank you.


            Originally posted by MR View Post
            I'm assuming your horse is going out on a full-lease to another facility, so you will have no expenses during the 6 months?

            I think the 30-days notice (rather than forcing the full 6 months) is really to your (owner's) advantage. If something isn't working out, wouldn't you prefer your horse BACK, than risk it sitting somewhere not being cared for?

            While, sure, you might end up having the horse back and taking it's expenses back on, that seems safer in the long run. If you force the lessee to keep the horse for the full 6 months (and they don't want to), you might end up with a horse that hasn't been well cared for because they couldn't afford it anymore.

            I assume, also, there is something written in to your lease about what happens if the horse gets injured? Who has to pay / Who has to rehab / etc...

            I've done heaps of part-leases over the years (but never a full-lease where the horse went off-site). The lessee (rider) usually has to give 30 days notice to quick (giving the owner a chance to find a new lessee). The leasor (owner) can terminate the agreement WITHOUT notice (to protect the safety of the horse), but obviously would try to give notice (ex: I'm going to put the horse up for sale starting on July 1st).
            I used to collect lunchboxes...now I collect horses...

            "Are you hopping today?" ....fave quote from Mr. lunchbox

            Comment


            • #7
              I have done it both ways as a lessor, but as a lessee always wanted the month-to-month option.

              As with anything in a lease, it's whatever the two of you agree on. If you want/need the stability of a six-month lease, then explain that to the lessee.

              (Even when doing a long-term contract, though, I have always retained the right to take the horse back without notice if s/he was being abused or neglected. )
              Proud member of the EDRF

              Comment

              • Original Poster

                #8
                Yes, we have that in our contract re abuse, etc.

                It just seems to me that by her wanting a 30 days notice it is essentially a month to month!

                I was looking for a 6 month situation so I didn't have to worry. This is a great kid, been vetted by my trainers, and she gets along great with my horse.

                But I get it, financial situations change, priorities change.

                There have been some great suggestions....thanks again!



                Originally posted by Kementari View Post
                I have done it both ways as a lessor, but as a lessee always wanted the month-to-month option.

                As with anything in a lease, it's whatever the two of you agree on. If you want/need the stability of a six-month lease, then explain that to the lessee.

                (Even when doing a long-term contract, though, I have always retained the right to take the horse back without notice if s/he was being abused or neglected. )
                I used to collect lunchboxes...now I collect horses...

                "Are you hopping today?" ....fave quote from Mr. lunchbox

                Comment


                • #9
                  I can see both sides of this; my thought would be that the lessor should be to terminate the lease if for some reason he is not rideable for over 30 days due to an injury or if your trainer feels the horse is not a suitable match.
                  As an owner, I would want to be able to end the lease if the horse and rider were not a good combination.

                  Whatever the agreement is on terminating the lease I would add the caveat that the lease fee is not refundable for any reason if they decide to terminate the lease. That should let you use the lease fee to pay board if needed.

                  Comment


                  • #10
                    I actually think it is a good thing. I don't think the 30 day option is the same as month to month, but rather an opportunity for the lessee to see if they are actually compatible with your horse. If they are, then the lease is extended to the full six months. If they aren't, then it is better for all involved if the lease is not continued. Good luck!

                    Comment

                    • Original Poster

                      #11
                      Thanks all. Lots of great input.

                      I think we will come up with something that we are all happy with
                      I used to collect lunchboxes...now I collect horses...

                      "Are you hopping today?" ....fave quote from Mr. lunchbox

                      Comment

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