Defining an Equine Half Lease
As such, an equine half lease is a lease agreement for Part of the time (typically part of the week) during which an equine rider will use the horse in exchange for a reduced monthly fee. In the half lease, the horse owner may agree to not double lease the horse and will often agree to provide feed and/or tack and equipment. An equestrian using an equine half lease will make a reduced monthly payment to the horse owner in exchange for equivalently less use of the horse.
An equine half lease is contractually distinct from an equine lease in that, while the leasing rider has use of the horse on 100 days per year in an equine lease, the half leasing rider only has use of the horse on a part of each week. Therefore , while the annual fee in an equine lease agreement is for the total amount of use of the horse during the term of the agreement (e.g., $3,600 per year for three days per week for 12 months at a rate of $100 per day), the annual leasing fee in an equine half lease agreement is a prorated amount (e.g., $1,800 per year for one day per week for 12 months at a rate of $150 per day). Typically, an equine half lease is for one year but can be for any other period of time if agreed upon by the parties.
Half leases are a good choice for riders or horse owners for whom the full costs of ownership or financial commitment are not appropriate.
Critical Components of a Half Lease Agreement
An equine half lease agreement should include at least five key components:
1. Lease Duration
The length of time that the horse will be leased is the first element that should be agreed upon between parties. Whether it’s four weeks or four months, having a clear start and end date for the lease will help ensure all parties are on the same page when it comes to horse care and decision making.
2. Financial Responsibilities
A detailed breakdown of financial responsibilities is essential in a half lease agreement. Often supplements, medications, and board fees come out of the owner’s pocket, and overriding decision making power may lead the lessee to assume otherwise. For example, if the horse needs new shoes or a vet visit but the owner wants to hold off and the lessee decides to go ahead and spend the money on these items without confirming who is responsible for payment, legal entanglements may arise down the road. To avoid confusion, leases should outline the costs associated with the horse and who will be responsible for each expense under various circumstances. For example:
3. Horse Management
As a general rule, maintenance and care of the horse should be the owner’s responsibility. However, as proper hygiene and upkeep are vital to keeping the horse healthy and happy, even the most amicable of parties should agree that the party with least skin in the game (i.e. the rider) should not have to shoulder the burden of these costs. Half lease agreements should include maintenance protocols, including who will be responsible for grooming, shoeing, vet appointments, etc. Layup and rehab protocols should also be outlined through mutually agreed provisions.
4. Care and Use of Barn Facilities
Many half leases are performed at commercial barns. For this reason, a clear understanding of each party’s rights with respect to the use and care of the barn is critical. Will the Lessee be permitted to use other horses’ tack? Can the Lessee block another boarder’s stall door while riding? A mutual understanding of each party’s rights will keep barn drama to a minimum.
5. Consent to Inspect
Lessee should reserve the right to inspect the horse at any time in the event that a dispute arises over the condition of the horse at the start or conclusion of a lease term.
Equine Lease: The Legal Side
The big reason to enter into a written lease agreement is to protect both parties. Writing down all of the various duties, obligations, and liabilities are crucial to reflect the true desire of the parties. An oral agreement is not easily enforceable. A written agreement is going to be crucial in protecting your interests when a problem arises. To the horse, the lease agreement helps determine who is obligated to provide for food, shelter, veterinary, farrier and other care. Clearly, the biggest legal issue faced by the lessor is whether the lessee will care for the horse. When you allow someone else to ride and care for your horse, there is no substitute for knowing their level of care and how much horsemanship they possess. If another rider is going to keep the horse at your barn, you will want to ensure that, in addition to any other reasonable requirements, they have insurance to cover the potential liability for any injuries to the horse.
Half Lease Benefits for Riders
One of the main benefits of a half lease for riders is flexibility. Traditional boarding, whether the owner does it all or splits costs with other riders, can become tedious and time consuming. A rider who makes a commitment to lease a horse might have to unexpectedly go on a business trip, or get reassigned by the military. Leases, and particularly half leases, allow a rider to be more flexible and spontaneous in pursuit of their passion.
In addition to flexibility, cost savings is a common benefit. Horse boarding can be quite expensive, and leasing a horse is often much more affordable to a rider who might have also had to store their saddle, tack, apparel, and equipment. A horse that is 30 minutes away from home on the subway can also be cost prohibitive. At a new barn, horse owners and half-lessors might only have to pay what it costs to feed a horse in exchange for riding and, perhaps, a low board cost.
Finally, half leases can be a great way for a rider to improve their skill set. In a full lease, there are less opportunities for a rider to advance and, perhaps, move up in the horse world. A half lease can allow a rider to fully experience a horse that they otherwise may not have had the chance to ride. The rider may be able to train with a different trainer than they normally do, or sponsor themselves in an equestrian event, those opportunities may be denied if a rider is making a full commitment to a horse.
Half Lease Benefits for Owners
A half lease can be a great way to help a horse owner ease the costs of their investment. Lower expenses can be one of the most motivating factors in entering into a half lease, since in many cases expenses will be shared between the horse owner and the person leasing the horse. If the horse owner is currently picking up all expenses for the horse, they could potentially save thousands of dollars a year.
When the horse owner brings another rider into the picture by entering into a half lease , it may also serve to lighten their overall load of care for the horse, which is a common source of burnout. With another person on board to help out with riding, the chances the horse will get the exercise it needs on a consistent basis will dramatically improve. A horse on a full lease may eventually need to be kept at a boarding facility due to consistent work restrictions issued as the lease draws near an end.
How to Identify a Good Lease Match
Looking for the right leasing partner for your horse or your lease horse can be a time-consuming task that either increases or decreases your chances of a great lease experience. It is important to take the time to be sure that when you do find the right person for your horse or that horse for you that you have all of the information you need to make the lease process a success. The owner of the horse on lease should interview potential lessees and/or require that the lessee provide references from riding instructors, trainers, and/or previous horse owners that have leased to the applicant in the past. If you are a rider looking for a lease horse, be sure to check with your riding instructor/trainer and anyone else that has worked with you to provide some feedback to that owner about your ability and experience before agreeing to a lease. Compatibility is key to a great lease. If the horse owner is very strict and has extremely high expectations, you may not be compatible with that horse on lease. For instance, if you are an experienced rider looking for a horse to lease, you will not want to lease a school horse that has primarily been used for inexperienced riders to learn. If you are a beginner rider looking for a lease horse, it wouldn’t be advisable to try and lease a show horse with a lot of training and show ring experience. The recent trend is to put a lot of pressure on a horse by moving him from one program to another, adding a lot of experience. While this horse may be ideal for a professional rider, he may not be a good match for you depending on what you intend to do with him. A mistake that many horse owners and riders make is not communicating clearly and openly with each other about what each wants and expects out of the horse and/or lease. This is very important to clarify at the beginning of the relationship so that no one is caught off guard later. Once you have a plan in place, before you enter into a legal document, be sure to document the details of the plan so that if there are any questions, the details are clear. You can also incorporate these plans into the lease agreement so everyone knows exactly what is expected for each party to do.
Half Lease Negotiations
You should negotiate the terms of your half lease agreement with the understanding that you don’t need to get your way on all points. Good faith bargaining in any contract will get you much further than being overly aggressive or combative.
Some really important points that you should insist upon are that the full leaser is responsible for bridging the gap between the horse’s needs and your own. Not all full leasers are created equal, and you shouldn’t be at the mercy of someone who doesn’t know what they’re doing or chooses to ignore your recommendations. You should also insist on a limited guaranty of a safe and reasonably happy equine experience, as well as unlimited time to try out the horse before paying any money or signing an agreement. You never want to find yourself locked into a lease with a horse that’s too fast or too slow, as you may have no recourse against the full leaser if you don’t want to ride him anymore. If you don’t have unlimited time to try him out, you may want to get the full leaser to agree to pay for a vet examination and trial of 5-7 days at her expense, as you’re going to be responsible for any injuries or other concerns that you find during trial time. You should include a disclaimer requiring this testimony in your half lease agreement. And no matter how agreeable you and the full leaser may be in principle, you really should have a written agreement before writing a check or assuming any financial responsibility.
Pitfalls to Avoid
A potential pitfall is the description of the half lease. For example, if you are entering in to an arrangement whereby you will half lease a horse for 3 times a week and you have the right to ride the horse at any time on those days and then have the ability to ride that horse on Sunday, and that’s what you understand, but that’s not what the other person thinks they’re getting, then you’ve got a problem. So be careful to make the description of the half lease very clear and precise, and then be careful that everyone does what they’ve agreed to do.
So you’re setting yourselves up for a relationship, and you don’t really want to get involved with litigation if you discover that there is some ambiguity.
All of these things are things that you might want to think about and talk through before you enter in to the half lease arrangement. And if there are ones that are issues for you, make sure that you work them out . If something comes up and somebody doesn’t agree, you can break the relationship down. You have to be talking to one another about it, and it could be worked out.
This is an area, as I’ve mentioned, that people can have issues about. If, as a result of some need that someone has in the barn or boarding facility, maybe, they have a need to reach their horse in a hurry and it’s blocking you, and the trouble arises because of the horse being moved from the borrowed transport and unloaded. You don’t want to be stuck in that situation. And it’s best to avoid these types of situations before you actually get yourself involved in a half lease, and I believe that this type of goal can be helpful in your half lease arrangement. The arrangement should be something that you can easily implement, and you have a common understanding that you implement the agreement together.