What's the point of leasing a horse when you have to pay all medical bills and expenses anyway?

Question

I though leases were suppose to be just a flat monthly fee and the owners took care of all the extra expenses.

Answer 1

well you get what you pay for.

full leases you will pay for everything, and yeah not much differences between leasin and owning the horse at that point. but think about a full lease like this, you are the one riding and taking care of the horse and the horse is your responsiblity, so yeah you should pay for anythign the horse needs on a full lease.

the other types of leases you will pay for less but there will be more limits to what you can do with the horse (unlike the full lease).

so point: you get what you pay for, if you dont want to pay the extra expense get a half lease or less and ride/take care of the hosre less.

Answer 2

you don't always have to pay those fees... leases vary... i've even found a few ads from people who just wanted their horse ridden and therefore all you had to pay was the board

Answer 3

You aren't committed to the horse for the rest of it's life. It's a good way to find out if you want to own one. A full-lease is where you pay for everything, just as if you owned it. A half-lease you are only responsible for 1/2 of the costs, but you may not be able to ride at any time you wish.  

Answer 4

Every lease is different. I lease one of my horses out, and the deal is that she is responsible for farrier fees and board, and we split medical bills 50/50. She is responsible for paying his insurance, but we agree to the amount and type of insurance (basically she just paid the policy I already had set up). So all I as the owner end up with is half the medical (and I also provide hoof supplements because I insist on him getting it - he would be getting it whether or not he was leased)

The reason you want to lease a horse is because then you don't have to put out the money for purchase, and when you're ready to get rid of the horse all you have to do is wait for your lease to be up. You're not stuck paying board and expenses on a horse while you're waiting to sell it. And if, God forbid, the horse should die, the owner is out the thousands of dollars spent on the horse - you're just out your lease fee.

Answer 5

Every lease situation is different, depending on the agreements that the lessor and lessee come up with.  Some owners are going to want costs split 50/50, others just want the board paid for.  Sometimes, that flat monthly fee will be adjusted to account for half of the farrier and half vet costs.  But that's likely only going to be shareboarding since the owner is still likely riding him or her.

If you're full leasing a horse, you have to pay all the medical bills and expenses.  Essentially, you're taking on that horse, and assuming all responsibility for it.  When we full-leased my Thoroughbred gelding prior to us buying him, we paid all his expenses, because I was given full riding privileges and responsibility.  Basically, he was entirely mine, but I didn't exactly own him.

I do agree that some of those expenses are, from the point of view of a lessee, rather extravagant.  My last lease, I paid a flat rate of $200  a month, which probably worked out to something close to half board and half shoes.  However, I'd talked to people who said that while it's all right to pay for some expenses associated with riding the horse (while I am riding, not while the owner is, etc. etc.) paying half of the vet bills would be really really bad.  Because who knows if the horse might colic and the owner opts for surgery, etc.

But anyway, everyone's lease interpretations are different.  And the lessee has the right to offer their own preferences.  If the owner isn't willing to budge, the lessee can move right along to the next horse.  People, in general, are willing to come to an agreement however.  It just takes communication from both sides.  

Answer 6

It depends on the lease and what the two parties involved agree to.  A lease agreement can be negotiated and either party has the right to refuse signing a lease with regards to the horse in question.  The person who wants to lease the horse can then move on to another owner and the owner can find someone who is stupid enough to sign a lease where any and all medical bills and expenses are paid by the lessee.

There would be no point in signing a horse lease that stipulated that the lessee would pay all medical bills and expenses associated with the horse.  It would be better to negotiate and say the owner is responsible for certain aspects of the horse's care while the lessee is responsible for other aspects of the horse's care.  For example, it would make sense for the lessee to pay for farrier work winse the lessee would be riding the horse.  It would also make sense for the owner to pay for the vaccinations and Coggins to protect his horse and to make sure it is done.

Hope this helps.

Answer 7

Different people have different reasons for leasing their horse to another.  they all have ideas about how the lease should be handled that both parties must agree upon.

There are no generally used rules about how to conduct a lease nor are there laws regarding how a lease must be conducted - there actually are no laws that state a leased horse must be contractually agreed upon in writing - however a SMART person doing the leasing or the person providing the horse to lease would want to get all these things down for protection should a fault occur and a court session ensue to resolve - additionally, the process of creating a lease prompts both parties to think about what each other expects and ensure the expectations for both parties will be met - it allows for a more positive commitment and time interacting between not only the people involved but the horse as well.

I will answer your question a bit with another - what person in their right mind would put a horse up to lease if they had to maintain all the payment of the expenses of that horse, possibly not covering the cost of maintaining the animal?

The reasons for leasing typically are to recover cost on an animal but not lose control of the ownership of that animal.  Perhaps a kid goes to college and their parents lease out the horse to another so that kid can make use and learning of it and keep the horse in mental and physical shape until the owner comes back from college, takes possession of the horse or then decides to sell it.  Also, I have seen people lease horses to others to see how they will treat it, care for it and handle it - then agree upon finally selling the horse to the lessor when they are certain of the horse's sound future.

In my current situation, I would never lease one of my horses - it's as good as losing control of the animal's care while maintaining responsibility for that animal.  Who knows how another rider will treat, communicate with and care for that valuable animal?  Many things can happen simply due to ignorance or lack of consistent knowledge and goals from person to person that could mess the horse up physically or mentally.  But many people do it successfully.

why would a person lease a horse when it costs just as much as owning one?  You've got a point there - I suspect it's because perhaps they don't know if they are prepared to have a horse for many years or they don't know if their kid will stick with a love for horses after they are at a certain age.  If they lease and have a sound, working agreement - when the terms of the lease are up, they can walk away from the responsibility without taking a loss in what they paid for the animal when they have to sell it later.

To me, when I purchase or foal a horse, I plan to have it for the rest of it's life.  If I can't maintain it and budget and plan for it, it's not the right thing to do.  We never know what will happen in future, but we know how certain aspects of our future are likely to turn out.  If we take on responsibility knowing and considering our situation we are being responsible.  A person who is new to horses goes out and buys a pretty one without doing their homework and knowing what it takes to keep one as they expect to, they are being irresponsible.  So if such a person can find a situation to take lessons and learn to keep a horse, then leases to try it out before buying that one or another, I consider them VERY responsible horse owners.

That would be the point of leasing a horse.

Answer 8

The contract is whatever two parties agree to.  the reason to enter into a lease such as the one you describe is because you don't have the money up front to purchase your own horse.  If you can afford to take out a loan, and pay it back on top of the costs you'll have in the lease agreement, then buying your own horse would be a better option. I would not lease one of my horses for a flat fee, but I'm sure if you look, you can find someone who will.

Answer 9

When I was 11 my parents leased me my first horse. We leased Friday for 1 year and 3 months. He was then bought for me for christmas that year in 1999. I had been riding for 6 years when they leased him for me, the point in leasing is to make sure you ONE really can afford a horse on your own, and TWO gives you the responsibility without owner ship so truly if it was something you didnt think you would stick with you could ultimately walk away. Leasing is great experience for first time buyers gives the person a feel for what they are in for.  

Answer 10

We raise ponies and we primarily lease, not sell.  In our case, it makes perfect sense.  Our focus is small and medium ponies and for those looking for a nice show pony, a lease is an easier option.  You are free to take the pony to your facility and show it at leisure.  When it's outgrown or the child ages out of the division, there is no complicated sale process.  You return the pony to me and you can move on to the next pony or even horse.  In our case, convenience is key.

That being said, we require all expenses paid for by the lessee (the person leasing the horse) AND they are required to take out an insurance policy on the horse with me as the beneficiary.  Insurance needs to cover death, major medical and loss of use (in case you bring back a lame pony).  I might charge a flat fee if the horse was boarded at my facility but that would raise the price of the lease - I have a stall I need to fill, hay I need to buy, feet that needed trimmed and possibly shod.  If I lease my pony out and you take it somewhere, then you are still using my resources (the pony) and although I have less bills, depending on what you did with my pony, it's value could possibly change, for better or for worse.

Add to that, some people want to lease for just a season... or even a weekend for a show.  They don't want to have to feed a horse all winter if they don't have the facilities to ride him in during inclement weather.  If they lease for a show, they need that horse's particular talent for a short time (such as a qualifying win) but don't want to pay the high price associated with a very talented equine.

That's the long version.  Short version... it's easy and less complicated than buying.

Answer 11

The major point of a lease is to not have to pay the up-front cost of the horse, which could run anywhere from $500 to $50,000.

Answer 12

There are many different types of lease.

Full lease- You pay all expenses

half- all expenses spilt evenly

are the two most common. Usually it's up to the owner the terms but maybe you can talk to them about it. Make sure you get any kind of agreement in writing!!