Anyone do Horse Boarding Business?

[9973720wb19]

I'm thinking about buying an old horse farm that is 45 mins away from my home - it would be a good long-term investment, but I don't have much time to maintain the property. It has about 40 stalls, several barns and a 3 bedroom small tenant house. Just to check my thinking/plan...is it reasonable and viable to plan on having a tenant/caretaker: 1) live on the property, 2) share the boarding money (after expenses), 3) not pay rent in cash but in exchange for maintaining the property and boarding customers. I would invest in the equipment (tractors, mowers, handtools, etc.) for the tenant.

In most cases, who supplies the food and other items for the boarding houses - the Landlord or horse owner? This would be all new to me, but over the years, everytime I went by this property, I was overwelmed with how beautiful it is...now it's for sale!

 

[bullbreaker]

I'd go over here and sign up : http://www.horseforum.com/

You will get lots of "hits"/comments on your questions and concerns.


Boone

 

[ustmd]

I'm thinking about buying an old horse farm that is 45 mins away from my home - it would be a good long-term investment, but I don't have much time to maintain the property. It has about 40 stalls, several barns and a 3 bedroom small tenant house. Just to check my thinking/plan...is it reasonable and viable to plan on having a tenant/caretaker: 1) live on the property, 2) share the boarding money (after expenses), 3) not pay rent in cash but in exchange for maintaining the property and boarding customers. I would invest in the equipment (tractors, mowers, handtools, etc.) for the tenant.

In most cases, who supplies the food and other items for the boarding houses - the Landlord or horse owner? This would be all new to me, but over the years, everytime I went by this property, I was overwelmed with how beautiful it is...now it's for sale!

Like most agricultural activities, this is a tough business.

According to the wife, who owns the horses, the feed can be done either way, but usually the barn provides the feed as part of the board. The exceptions are if the horse has specific dietary needs or a wacko owner (not an unusual condition in the horse world). The owner is required to provide any additives or supplements that they want the horse to have, as well pay for vet bills and farrier expenses.


40 stalls across multiple barns will be a lot of work, especially given this is a commercial operation. If you consider 10-15 minutes per stall for feeding (food and hay), mucking out stalls and leading horses in and out of pastures, you are looking at 6-9 hours per day in horse activities before getting to a maintenancence or improvement activities.

The people who we have known who have run barns commercially, generally saw the board as covering operating expenses (feed, taxes, insurance, up keep, etc) and made their money in the extras--giving lessons, having shows, hosting clinics, etc.

Another thing to consider, unless the caretaker is a minister and the barn is a church, he will have a tax liability on the value of the free "rent" he gets in exchange for the maintaining the property.

 

[BeezFun]

We board 3 horses, our neighbor had as many as 28 and had a situation similar to what you describe. He gave the caretaker one bedroom and kitchen use in his house in exchange for doing all the feeding, mucking and generally watching out for things. The guy was too old to do maintenance or anything heavy. Boarding normally includes food, but you can do things ala carte if you want to. Some people want to bring their own hay anyway. Insurance is a big deal, once you're running a business things like homeowner's insurance go into a different category, you need special liability policy, etc. My observation is that there isn't much money in boarding, the money is in training and doing other things to generate revenue from the boarders. If you have an indoor arena and/or round pen, you can split money with a trainer who comes in and gives lessons. The big money is in the upscale activities like dressage, hunter-jumper, etc. I heard a lot of bickering among boarders, seems like there's always some kind of drama. Everybody thinks they know everything, everyone has an opinion on how to wind up the hose. So make sure your manager is part lion tamer.

 

[QRTRHRS]

If you don't know much about the horse business, you are going to be the exception rather than the rule to have a successful business. Beyond that, go high end. Stay away from people wanting to clean their own stalls for a lower rate, pasture board, etc. Sorry but these are the ones who are always late.

With 40 stalls, you not only need a caretaker but you need a manager as well. Sorry but one person cannot do both. Maybe a husband/wife deal but they will need to make a living. The good ones are usually looking to get their own operation set up.

You need to have your sources for hay and bedding lined up. A plan for manure management. You need accountants and a lawyer familiar with equine liability and tax issues. I would suggest setting up as an LLC to limit your personal loss should the worst happen.

 

[Mike476]

Had to chuckle when I read about the drama side of some horse people, couldn't have said it better myself.

To be competitive is risky, there is a point where it becomes cost prohibitive to keep an animal other than on your own property, and it is a very fine line in todays economy. There are still people who for the love of the sport find other options, a friend's friend who has room for one more type of thing, makes it hard to be able to develop and sustain a viable long-term investment growth, particularly if it becomes your only source of income.

Be prepared for people wanting to summer their animals on their properties and seeking board only during winter months.

 

[Stimw]

Some thoughts after hearing what a friend goes through.
It is a 7 day a week, 365 days a year operation. There are NO days off, NO vacations!
Boarders making high incomes will still be late paying and then act like they are doing you a favor to pay up and ***** about late fees!
Boarders will not leave your barn like they found it. Tools, hoses, lights, rest rooms, gates, doors, to name a few.
It's a very romantic endeavor that even a wealthy person who can pay to have it managed would find it troubling.

 

[Alan L.]

How much land does it take for boarding. Another model would be to provide a fenced in area with shelter, water, and storage for feed, hay, and tack. Provide no services whatsoever, just charge rent for the facility. Any way to make money using this model? The is the ONLY way I'd do it.

 

[tcreeley]

If you are new to horses, your best arrangement is a lease situation. Lease it to someone in the business of boarding or training. But wilth all aspects of the horse business, there is a lot of here today, gone tomorrow. You don't want to be left with a barn full of horses, no feed, and an absentee manager. Getting someone good will make the difference. A lot of "pros" talk a good line, but they don't deliver. If you would just like to own the property and are looking to offset the cost of owning, without producing a profit- then it might work. Being new to the horse business I think you will get burnt if you expect to generate cash. I think your liability costs will more than equal what you take in.Not knowing the horse world will make you an in-effective hands on manager. You can learn, but horse are a thing to themselves. Good luck. The success of your venture depends upon your realistic expectations. Consider your sources of money, and the credit worthiness of your lease holder/manager/trainer. Check references. Reputation. Expertise. How ready is the property for the horses? Repairs needed? Safety concerns? Insurance liability due to negligence, possible injury, death. It all has to be considered when running a public establishment,
Good luck!

 

[whistlepig]

A forty horse barn is going to be an almost a full time project. No mater which way you slice it.