Horses and the Law Horses and Hospitality By Jim Ritchie
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questrian competitions and events are hitting their stride this summer, and that means more travel for horses and riders. Finding a good location for short-term stall and paddock rentals can be daunting and unpredictable. Because of the challenges that come with using stalls at show venues, many private farm owners and commercial barns are getting involved with stall rentals for short-term stays during horse shows, or simply for vacationing horse people. While this trend is not new, it is becoming increasingly popular in our region. The growth in “airbnb for horses” helps local barn and farm owners generate extra income with little additional investment and enables traveling equestrians to board their horses in a safe and secure environment. The market for the short-term horse hospitality business has matured and now supports online brokers using the same model as VRBO® or Airbnb®. Sites such as staller.com match host farms and travelers for specific dates, boarding services, amenities and payment. However, the terms and conditions of the stall rental are left to the parties to work out. Because of this, both the host and the visitor need to address these details in a separate written agreement. If you are considering offering hospitality for horses, or if you are planning to keep your horses at a private farm for a show or event, remember that a well-written and enforceable rental agreement is essential to protecting each party’s interests and assuring a successful experience. In this article we explore the important issues to include in a rental contract and the risks each party needs to consider. As a practical matter, the parties should approach short-term boarding just as they would a regular boarding relationship. The issues are very similar, but because of the need for quick solutions to any problems that may arise, there are critical terms that need to be included in the rental contract.
From the Host’s Perspective
Before embarking on a short term boarding venture, make sure your local zoning, land use or HOA regulations permit this type of activity. Assuming you can legally host boarders, the key issues to focus on when renting your stalls, pastures or other amenities are protecting your assets, reducing risk, providing a quality experience, enforcement, and getting paid. • Managing Risk. It is essential that you secure the right insurance for boarding horses. A Comprehensive General Liability (CGL) policy will protect you for claims by the public if they are injured on your property. However, CGL insurance may not cover claims, injury or death involving horses that are boarded on your property. To insure against those risks you should obtain a “Care, Custody or Control” endorsement to your policy. “Care, Custody or Control” endorsements cover claims arising from incidents involving boarded horses while on your property. If you do not have that complete coverage, you may be at significant risk. • All written rental agreements should include a comprehensive Waiver of Liability Agreement and the South Carolina statutory equine warning language. You should post the state-approved Equine Liability Warning Sign in a proper location. These are fundamental action items to protect you from liability claims. • Many hosts require that all boarded horses be insured and that their owner provide proof of coverage. This becomes more important with higher value horses. • Every horse to be boarded should have proof of a Negative Coggins and be up-to-date in vaccines. • What type of horses will you accept? Consider the horses currently on the property and what type of visiting horses would be compatible. The temperament and personalities of your horses and
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The Aiken Horse
the prevailing riding discipline at your barn are important factors to consider when taking on boarders. It is common for hosts to not allow stallions or mares in foal to participate in a short-term rental. You should also require the short-term renter to disclose if their horse has any lameness or medical issues, as well as any medications the horse is taking. • Boarding services and amenities. Will you offer full board, dry stall, turnout service, access to arenas and trails? Do you have a secure area for the boarder to store feed, tack and equipment? Will you allow the boarder to park a trailer, RV or other vehicles on the property? All of these issues should be addressed in the agreement. • Practical terms to include in the rental agreement. The rental agreement should address practical operational points that will make the experience better for all parties. These include: vet, farrier and emergency care policies, rules on unaccompanied minors, barn hours and rules, helmet and safety requirements, use of your equipment and facilities, enforcement and termination terms for violations, and responsibility for damage or injury caused by the renter or their horse. • Getting Paid. If you are working with a service like staller.com, payment is included in the process. You receive that service with the fees you pay the broker. If you are billing and collecting with your customer directly, you will need to set up a payment system and reservation policy. It is best to get full payment at the time of reservation. Requiring a damage deposit or authority to charge the renter’s credit card for damages is a good practice to avoid financial losses.
From the Renter’s Perspective
When seeking a short-term rental for a competition, visiting a hunt or other event, renters need to learn about the host farm and be confident that the barn meets their needs and expectations before signing up. • If the host is a commercial barn, check out its website or Facebook page. If it is a private farm, get good photos and a detailed description of the facilities from the owner. In either situation, make inquiries about the host with online groups or local equestrians you know. Once you find a good candidate, here are some important points you want to address in the rental agreement: • Are the services and facilities clearly spelled out? Be sure the contract accurately describes the level of care your horse will receive and the size and location of the rented stall. If you need access to an arena, lunging area, trailer parking or other amenity, put it in the agreement. • What are my rights if the host breaches the contract? The last problem you need upon arriving at the host farm is a problem with the facility. Maybe the stall you reserved is not available and or the facilities are not as represented. Perhaps the host failed to disclose ongoing construction on the property that will stress your horse. Issues like these can arise and you should protect your rights by including effective remedies in the rental agreement. • Can I get my money back if I cancel? In the event you are not able to attend the event for some reason, you should include a refund provision in the rental agreement. Fellow equestrian hosts will usually work with you if the event is canceled or if you or your horse is injured and cannot travel. Short-term boarding arrangements are a growing solution to the travel challenges facing many equestrians. By using well-crafted rental agreements that address the key legal and operational issues, all parties can have a reliable and successful experience. Jim Ritchie is head of Ritchie & Associates, LLC and an avid horseman. He represents business and equine law clients across the Carolinas. For more information visit tryonequinelaw.com or call 864.527.5955. ©
June-July 2021
