Specifying the Terms
Once you've decided to put things in writing, there are still many topics that need to be discussed and understood by the parties involved. The "terms of a lease" should be discussed in detail-and some of the things to consider can be complex.
The most obvious detail is the type of lease. Do you want to try a full lease or a partial lease (also called a half-lease or share board)? In a partial lease, more than one person may be leasing the horse at the same time (or you may be sharing the horse with the owner), so riding days will need to be divided up between the parties. You may be allowed to ride only two to three times a week, but a half-lease is usually cheaper and less complex and may work out just fine for someone who is not into serious competition.
The second thing to consider is the duration of the lease. Are you planning to enter into a relatively simple "monthly agreement" or do you plan to lease a horse for an entire year or longer? It's up to you and the owner to determine. Also, be clear on whether this is a "lease with an option to buy." You could become very attached to your mount only to find out that buying him is not possible at the end of the agreement. Or, if you are the lessor, you may feel pressured to sell before you are ready to let go of an animal you love. Figure out exactly how you feel about the horse and his future welfare before you enter into any type of agreement.
The horse's medical costs must also be taken into account. In most full leases, the lessee takes on the cost of shoeing, deworming, and vet bills for the duration of the lease. However, there is always the risk of an accident, injury, or illness to the horse during that time. Sort out in advance who should be responsible for any extraordinary (for instance, an emergency colic surgery) or ongoing veterinary costs. Many times, it makes sense to invest in an equine insurance policy. You may want to look at coverage that includes not only death, but that also covers major medical expenses such as a colic surgery or "loss of use."
This is what the Babcocks decided to do for their leased mount. "We paid additional money so the owner could take out an insurance policy on the price of the pony," Lisa Babcock recalls. That way, both parties would have been protected if anything happened to the pony while in her daughter's care.
The lessor and the lessee also need to define exactly who the parties are in a lease agreement. This may seem so obvious it doesn't need to be discussed. But it's not as simple as it appears, especially when the horse will be out of the owner's sight. For instance, someone who leases a horse for a year might let her friends ride-or give her little sister pony rides, unless the lease specifies otherwise. Besides creating a possible liability, such a situation might have an undesired effect on the horse. Stable manager Roni McAbee points out that if a high caliber horse is ridden by someone who is not as advanced as the mount needs, a lot of expensive training might be undone.
Intended Use
Both Roni McAbee and attorney Julie Fershtman emphasize that the intended use of the horse is important to discuss. What activities are you planning to do with the horse? Are you allowed to show him? How long can he be ridden? How often? What restrictions are there?
"Use is a really important provision in a lease," Fershtman says. "It is also where the lessor has some control, at least in writing, about what is going to happen during the leasing period." In addition, she says, the lessor can set up restrictions on activities like jumping, barrel racing, and trail riding.
McAbee, who has leased horses to numerous people during her career, does not allow jumping outside of lessons. She also has strict policies about grooming before and after the ride. To be certain that her policies are enforced, she never lets her animals leave her property. Of course, if you are not the owner of a stable, you may not have the luxury of leasing to someone in the same barn.
The lessor can also lay down rules about transportation. It is possible to set up restrictions about the horse leaving the state, which could become an issue if you compete regularly and wish to show out of the area.
Other geographical challenges are coming into play as well. "Nowadays, thanks to the Internet, we're seeing more people dealing across state lines," Fershtman says. For example, you may end up leasing a horse from Vermont when you live in New York. "If this is the case," contracts need to be clear on which law the parties intend to apply." This is because laws can vary widely from state to state.
Obviously, if you're dealing with people you don't know, such as someone in a different state who you've contacted via the Internet, it becomes even more important to put your agreement into writing. "If you are leasing to a stranger, you need a contract," McAbee says. "It's as important as a contract to rent a house."
Contracts for equine leases can be found online; however, you might want to carefully consider whether to use them.
"In my opinion, form contracts found on the Internet and in books sold in stores are, at best, a starting point. I can't even say a good starting point sometimes," Fershtman cautions. She points out that many of these form contracts leave out key protection clauses, and, in some cases, don't comply with state laws.
"If people want to be protected, they really should consider having a lawyer review or draft a contract."
Even though the list of considerations may seem daunting at first, equine leases can and often do work out to the benefit of both parties-and for the horse as well. The key is to be informed before you make an agreement, enter into a lease only with a person you trust, tailor the conditions to suit your particular situation, and make certain that the terms are fair before agreeing to them.
