Turn the horse rental experience into a win-win deal
Leasing out a horse can have both advantages and disadvantages — both for the person who leases out the horse (the owner) and for the person who leases the horse (the lessee).
We have all heard horror stories of horse owners who, after the lease ended, got their horse back in poor condition or with bad habits.
At the same time, lessees may also find themselves in difficult situations if the horse is injured during the lease period or does not live up to the initial advertising.
On the other hand, leasing has many benefits.
For horse owners, it means retaining ownership of the horse while he can continue doing the activity he loves.
If you are under financial pressure, you can benefit from any extra income your horse may generate or cover the costs of ownership without having to sell the horse.
However, it is important to balance the benefits of leasing against its potential problems.
While leasing a horse for a single period or over several years can be financially beneficial, the owner's profit may quickly decrease if the time between subsequent leases is long.
Ownership during the periods between leases can be costly, especially if your horse is kept in a stable.
The owner should consider his short-term and long-term goals when deciding whether to lease out his horse.
For lessees, the ability to change horses as skills improve can be beneficial, especially for young riders who are reaching new levels.
In addition, having a horse for a limited period of time can be ideal for people who can only commit to riding or using a horse for a certain period.
Similarly, some lease agreements include an option to buy the horse during the lease period or at the end of the lease period.
This can be a great advantage for riders who want to make sure the horse suits their needs before purchasing and making a long-term commitment.
Very important lease agreement However, since leasing a horse involves the temporary transfer of control and use of the horse, usually in exchange for a lease fee plus all maintenance costs, there is always some level of risk associated with leasing or leasing a horse.
Most of the steps the owner and lessee can take to protect themselves and the horse relate to having a detailed lease agreement signed before the lease begins.
The owner and lessee should consider including the following elements in a lease agreement and agree on the details before signing the contract.
Trainer and boarding location: When deciding to lease out your horse, two important factors to consider are the stable and the trainer who will be responsible for your horse's training and show schedule.
Check the qualifications and reputation of the trainer responsible for your horse, and make sure the lease agreement specifies which trainer is responsible and that any change in trainer is only possible with prior written approval.
Restrictions on use: This is your opportunity to put in writing anything you do not want your horse used for, or anything that goes beyond his abilities and increases the risk of injury.
For example, up to what height are you comfortable with your horse jumping?
If you prefer that your horse never jump higher than 3 feet and 6 inches, state this in the contract.
If you want him to be ridden only in hunter and equitation classes, include that as well.
You may also want to limit the number of shows your horse attends each month and who is allowed to ride him.
Include anything you are not comfortable with in the lease agreement.
One of the most important factors to consider when deciding to lease your horse is the trainer who will be responsible for his training and show program.
©Alana Harrison Quality of care: The lease agreement also gives the lessee the opportunity to specify the standard of care the horse should receive.
For example, if you want your horse to be shod every six weeks, that can be included in the contract.
The contract can also include details such as “the horse must always be ridden in boots; the horse must wear a sheet or blanket whenever the temperature drops below 50 degrees Fahrenheit,” and so on.
This is a golden opportunity to put in writing anything that is necessary and helpful to ensure quality care for your horse during the lease period.
In the event of injury: Every good lease agreement should include information about what happens in the event of death, injury, or illness.
Although it is unpleasant to think about, these situations do arise, and all parties should be prepared.
In the event of lameness, who is responsible for the veterinary expenses?
If there is a known pre-existing health condition that could potentially cause lameness in the future (for example, navicular in the right front foot that has not yet caused any problem), this can be included in the contract as grounds for terminating the lease and returning the horse.
Can the lessee terminate the lease early and return the horse if the horse becomes unable to be ridden for other reasons?
In the event of the horse’s death, what is the lessee’s responsibility (see insurance requirements below)?
There are many points to consider in these circumstances, and they should be clearly stated in the contract and fully discussed with all parties before the contract is signed.
When working with a prospective lessee on the contract, make sure anything you do not want your horse to be used for, or that exceeds his abilities and puts him at greater risk, is put in writing.
©Alana Harrison Insurance: Along the same lines, insurance requirements should be included in the lease agreement.
If the horse was insured before the lease, it may be stated in the contract that the lessee must continue paying the horse’s insurance premiums.
If the horse is not insured, the contract should require the purchase of mortality insurance and/or major medical insurance for the duration of the lease.
Without major medical insurance and an agreement on death payment, both parties may be left with an incapacitated horse or a horse that has died and unpaid veterinary bills.
Important leasing tips Leasing is an important part of the equestrian sport.
Young riders outgrow horses physically and in terms of performance, and older riders may not be in a position to take on the ongoing responsibility of horse ownership.
The good and bad thing about leasing is that, in the end, you return the horse.
When everything goes well, it is a win-win for both sides.
About our experts Armand Leone, Jr.
, MD, JD, MBA and attorney Jessica E.
Choper from Leone Equestrian Law provide legal and advisory services for riders, from riders and trainers to owners and show managers in FEI disciplines, on a wide range of issues.
For more information, visit www.
equestriancounsel.
com.
Source: Practical Horseman – Training