A full lease agreement for an equine facility is a legally binding contract that offers protections and assurances to the barn's owner and the lessee and is useful when a horse owner or trainer wants to rent an entire equine facility. Experts recommend leases for equine facilities and associated activities such as boarding, riding lessons and training be in writing and cover contingencies.
Begin with information that identifies the parties to the lease, the equine facility and the length of the lease. Specify any security deposit and monthly rent, along with penalties for late or rejected payments. Insurance is a critically key component of an equine facility full lease agreement. The contract should specify what insurance each party is to maintain. The contract should note the utilities available at the barn and who must pay the bills. Because dogs and horses can be a volatile combination, it's wise to specify what breeds of dog, if any, are allowed on the premises. Other items to think about are alterations to the facility, manure management and signs.
Advertisement Article continues below this adThe property owner should consider including clauses designed to protect himself and his business from liability. It's common for the tenant to assume risk of loss or injury to himself, his guests, the horses and personal property. Tenant should acknowledge his inspection of the property and that he found it safe and adequate for horses. The lease should include details such as whether the tenant is permitted to live on the premises, that all horses are stay current on vaccinations and that the tenant grants landlord a lien on the horses to secure payment of lease. Finally, consider including a clause in the contract that requires tenant's guests to complete a liability release.
Because the property owner is the lessor, he will likely prepare the contract with terms more favorable to himself. A lessee should review the contract offered by the property owner and negotiate as many protections as possible. Examples of clauses to protect a lessee include would be a clause that states what will happen if the landlord can't deliver the equine facility on the date promised, or what will occur should the facility be damaged or destroyed by fire or natural disaster. The contract should recite what insurance the barn owner has covering the horses, tack and potential liability to third parties.
Advertisement Article continues below this adAll but four states – California, Maryland, Nevada and New York – now have equine liability laws. These laws generally protect an equine facility and its employees from liability for injuries suffered in the ordinary course of handling horses. Most state laws require a barn post signs informing an equine participant he or she assumes the risk of injury by participating in equine activities.