Leasing: A Smart Alternative

Understanding the details is an important part of a successful lease
By Ferronato Shen

For so many of us, having horses is a dream, perhaps one that has been with us since childhood. But the dream horses we create in our minds are not the same as the flesh and blood horses standing in front of us. Sometimes when people are finally in a position to own a horse, they get so excited that they take the first horse that comes along instead of trying many different horses to find the right one.

I feel strongly that we should treat horse ownership like marriage and put as much thought into our future equine partner as we do our marital one. We may date multiple people before settling down and getting married. For me, the dating equivalent in horse ownership is taking lessons either from several different trainers, or if you have a trainer who is a good match for your personality, trying several different horses she has available. Another option is to lease prior to making a commitment to purchase.

Advantages of Leasing
Frequently, a rider advances to a place where she has outgrown her first horse and then is stuck needing to sell the horse; if she is so attached to her horse she can't bear the idea of selling him, she does not progress in her riding. On the other side of things, I have often located the horse of my client's dreams, only for her to realize months later that it wasn't really what she wanted in a horse. In either case, a lease would have been advantageous over buying.

My own first lease was done on a verbal agreement, and when my trainer found out she sat me down and gave me a stern talking-to about liability and the importance of writing up contracts. I have no doubt most people leasing do not want to take the years and make the mistakes I've made to discover how to create a lease that is a win-win situation. The most important thing is to write everything down. Even the smallest detail is important, so leave nothing to chance.

Essential Items to Include in a Lease Contract

• Shoeing - How frequently and by whom? Is the owner or lessee responsible for payment?

• Veterinary Care – The contract should specify all vets authorized to care for the horse, including dental, lameness, general care, homeopathic care, and several vets for emergencies. Phone numbers should be included right in the contract.

• Supplements – The contract should outline what supplements the horse is supposed to be on and specify a check-in every three months with the designated vet in case something changes. A copy of the consultation with the vet should go into the file as an addendum to the contract.

• Body Work – Especially for performance horses, frequency and designated practitioners for equine massage and chiropractic care should be specified in the contract.

• Equipment – The contract should list what—if any—equipment is provided and stipulate the type(s) of tack and equipment to be used on the horse. Ill-fitting or improper equipment can cause expensive and lasting problems.

• Injury – Each party's responsibilities in case of injury should be specified. The lessee should not be expected to spend a bunch of money right off the bat on dental and various other veterinary costs; it's the owner's job to have the horse in good shape prior to beginning the lease. On the other hand, the owner should not be expected to pay for rehabilitation necessitated by lessee negligence.

• Termination – Typical leases may include a termination clause requiring 30-day notice on either side, and possibly some additional responsibilities in case of termination.

• Work – The type of work the horse is allowed to do (jumping, dressage, trail riding, etc.) should be clear.

• Housing and Transport – For horses housed on the owner's property, conditions under which the horses are allowed to leave and what is required when they do should be specified. For example, if a horse is going to a show, the owner may require that the horse be accompanied by one of his or her trainers or have written permission releasing the horse from that requirement. For horses boarded at the lessee's property, specifications should include the address where the horse is to be boarded, required conditions of that property, and possibly a protocol for changing locations.

• Training – The owner may specify a trainer or list of approved trainers for the horse.

• Riders – Often, only specific riders are allowed on a leased horse. If a family is leasing a horse, each family member who is allowed on the horse should be listed. The contract will likely state that no one except the person or people listed is allowed to ride the horse outside of a lesson environment. If the horse is green or has known vices such as kicking or biting, a list of approved handlers should be included as well.

• Liability – If the contract has a "hold harmless" clause (a clause stating that one party will accept all liability in certain circumstances), make sure it is clearly defined.

I also like to include a clause stating that if the horse should become available for sale during the lease that the lessee has the right of first refusal (the horse is offered to her for purchase first), then specify the exact terms of that right.

Legalize Your Document
As an owner, have your contract reviewed by an attorney to make sure everything is legally sound. As a lessee, make sure you read the contract carefully and ask questions if there is anything you don't understand or would like to change. If changes are made to the lease agreement, then it goes back to the attorney to make certain the changes are done in an appropriate legal manner.

What makes a lease successful is that everyone agrees up front on the parameters. The best interests of the horse should be the primary concern for everyone involved. For sample documents or assistance getting started there are many wonderful sites online, or you can email me for a free copy of one of my contracts (email available on website, below).

Ferronato Shen is the owner of Three Treasures Farms, a non-profit holistic program dedicated to the rescue and rehabilitation of performance horses, as well as helping disadvantaged children through a partnership with horses. For more information about Three Treasures Farms, visit www.threetreasuresfarms.com.