The Ultimate Guide to Horse Lease Agreements: What Every Owner and Lessee Should Know
I’ve seen more than my share of horse lease disasters—broken contracts, broken friendships, and horses caught in the crossfire. In nearly every case, the root cause was the same: vague, incomplete, unenforceable terms or a complete lack of written agreement in the first place.
Leasing a horse can be a smart way to enjoy the benefits of horse ownership without the full financial commitment, but only if the agreement is solid from the start. Whether you’re leasing out your horse or stepping into the saddle as a lessee, a well-drafted contract isn’t a luxury—it’s a necessity.
The right agreement doesn’t just save you money; it protects your horse, your business, your relationships, and your peace of mind. It’s what turns a handshake deal into an enforceable agreement and keeps everyone out of the courtroom.
Let’s break down what a strong horse lease agreement should include and how it can protect both parties for the long haul.
1. Define the Type of Lease
First things first: What kind of lease are we talking about? This may seem obvious, but it's an area where many agreements are vague, leading to misunderstandings later.
Full Lease: The lessee takes over all care and costs associated with the horse. They have exclusive use of the horse, just like they would if they owned it.
Partial Lease: The lessee shares the horse with the owner (or another lessee), usually splitting the horse's time and expenses.
Why does this matter? Because each type of lease comes with different responsibilities. If you're the owner, do you want to ride the horse once a week or reserve it for competitions? If you're the lessee, do you have exclusive access, or are you sharing the horse's time and care with someone else?
2. Specify the Financial Terms
Let’s talk money. A horse lease involves more than just riding; it comes with specific financial obligations that must be clearly defined.
Lease Fee: Is there a monthly fee? Is it flat-rate, or does it fluctuate depending on the competition season? Will the lessee share a percentage of their winnings with the owner? If it’s a partial lease, is the fee based on a percentage of the horse’s use?
Additional Costs: Who pays for vet bills, farrier visits, insurance, and other costs? One of the most common disputes I see in horse leases is over unexpected vet bills and costs that weren’t addressed in the contract.
Pro tip: Always include a clause on emergency veterinary care. If the horse needs emergency surgery and the owner can’t be reached, what happens? A simple provision about who authorizes and pays for care can save a lot of stress in an already difficult situation.
3. Establish Responsibilities for Care and Maintenance
Where will the horse be kept? Who's feeding the horse? If you've ever cared for a horse, you know the devil is in the details. Care and maintenance are two areas where a little clarity goes a long way.
Daily Care: Who is responsible for the horse’s daily care? If the lessee is handling these tasks, be sure the agreement clearly outlines what “care” entails—feeding, riding, turnout, mucking, grooming, etc.
Boarding Arrangements: Where will the horse be kept? Does the lessee have the option to move the horse to another location, or is that at the owner’s discretion? If moving the horse is permitted, what kind of facility standards should be met?
For owners, this is a great time to specify any non-negotiables about care—like specific farriers, feed types, or vet preferences. For lessees, this ensures you know exactly what’s expected, avoiding any unpleasant surprises.
4. Riding, Training, and Competition Rights
Now for the fun stuff—riding and competing! Who has access to the horse, and for what purposes?
Riding Limits: Can the lessee ride the horse whenever they want, or are there restrictions? For instance, is the horse limited to certain disciplines, or is it free to compete in other events?
Training: Can the lessee use their own trainer? Some owners prefer that their horse stays with a specific trainer or style of training to maintain consistency.
Competition Rights: If the lessee competes with the horse, how are entry fees, winnings, and prizes handled?
Make sure these sections are clear. If the lessee is planning to train for a specific event, the contract should reflect those plans. Likewise, owners may want to reserve the right to use the horse for specific shows or events.
5. Outline Liability and Insurance
Horses are unpredictable—clear liability and insurance terms are essential to protect everyone involved.
Liability: The lease agreement should clearly state who is liable if the horse is injured or if the horse injures someone else. It's important to include a clause that releases the owner from liability while the horse is under the lessee’s care—this is standard in many lease agreements.
Insurance: Horse insurance can cover a range of things—mortality, major medical, loss of use. Who is responsible for insuring the horse? Is the lessee required to take out their own insurance policy, or will the owner’s existing policy cover the lease period? Make sure all parties know what's covered—and what isn’t.
6. Set Clear End-of-Lease Terms
A well-drafted lease accounts for both the beginning and the end. Define clear terms for renewal and termination to avoid confusion when the agreement runs its course.
Renewal or Extension: Is there an option to renew? If so, under what terms? Sometimes people want to make changes (like adjusting fees or responsibilities) when renewing, and it’s best to outline that process in advance.
Early Termination: Can either party terminate the lease early, and if so, under what circumstances? Whether it's due to unforeseen circumstances or a poor match, it’s good to have an exit strategy in place. This should include notice periods, logistics of returning the horse, and financial settlements if necessary.
Protect Your Investment, Protect Your Peace of Mind
If you're entering into a horse lease—on either side of the deal—covering the details upfront isn’t optional; it’s essential. A well-structured agreement protects your investment, clarifies expectations, and helps avoid conflict before it starts. Ready to lease with confidence? Check out our attorney-drafted, fully customizable Horse Lease Agreement here to get the protection you need.