Leasing my land for someone to keep horses on?
I have been approached by a neighbor to lease some land to him to keep 4-5 horses on. The fenced portion of the land is about 6 acres and has a metal barn with 4 stalls, running water, electricity, tack room, and wash bay.
From what we have talked about so far he would be responsible for taking care of the horses completely. I wouldn't be responsible for anything related to taking care of the horses. But I have a couple of questions below.
I was wondering what was a reasonable price to ask for the lease of the land? The land is in a rural community of Georgia. I haven't leased any land before except for hunting purposes. Would it be by the head? acre?
My biggest concern is what liabilities would be associated with leasing land for this purpose? For example..If the horse break out of the fence who would be responsible? If someone gets hurt by the horses while on my property who would be responsible?
If there is anything else I should know about this please let me know.
Here in SD I have seen it done both ways.
Bottom line - you can write up a contract however you like. (I would include a clause for upkeep and damage repair) Have it witnessed and notarized.
As far as the fee - what are you doing with it now? Figure out what the taxes and up keep are for that tract and charge accordingly.
Around here it is $20 for every 5 acres with no improvements. If there is water and electricity the price goes up. If it has any type of shelter available the price again increases based on what type. Call your home owner's insurance and also have a contract, is signed and notarized as to who is responsible liable for what. Make sure there is a clause that limits the number of animals. Lowest considered amount would be to cover taxes and upkeep.
Appreciate the responses.
I am not looking to make much, if any, of the lease.
The land is not currently being used for anything other than hay. I will contact my homeowners insurance and see what they say.
Here is a template for a horse pasture lease agreement I was able to find online. It is probably not identical to your situation and as such, would need some major tweaking but at least it's a start.
I would definitley set up a contract in writing like others have stated, it's too easy for you to get burned if you don't. IF he is to take all responsibilty for the horses I would make sure that's in the contract. So then if one gets sick or something happens he can't come after you. A lot of people lease land out here to others, but the contract is VERY important and most actually have a lawyer draft it, usually costs between $75 to $100.
When I rented out my back field like that, I rented out the back field. In the contract I specifically stated that I was renting the field AS IS, I am making no claim to its suitability for any purpose what soever. I am NOT a horse professional nor do I know anything about the upkeep or requirements of a horse. Suitability of fences, buildings water supply and complying with any applicable land use laws is the tenants responsibility. I made it clear I was renting an open field, NOT boarding horses. What the tennants did with that field was there business.
As far as the cost, it totally depends on where you are. If you are near Atlanta, you could get a king's ransom for the property. Horse board (even self care) is hundreds of dollars per month per horse. If, on the other hand, the land is in Ludowici, you may not get so much. If you don't make some kind of profit, it is not worth doing because there is going to be some aggravation involved. The electricity and water will cost you something. If you can't get a couple of hundred dollars a month, you should probably find somebody else to rent it.
Deer hunting land goes for $15 more or less per acre per season. That is different. It doesn't cost you electricity, water, or really anything.
I will have my attorney draft a contract.
It doesn't look like there will be too many surprises involved as long as everything is in writing.
Thanks again for the help.
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