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Renting a facility to start a business

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  • Renting a facility to start a business

    Hello all...I'm looking for those who have first hand experience with renting a barn to start a business out of...wether you rented it for your own business, or you owned it and rented it out to someone else.

    Buying property isn't an option for me for a while, and I would like to start up my own lesson barn, with some boarding and training as well. We just lost a huge lesson/boarding facility in the area, so this would be a great time for me to jump into the game. There is a large demand for lessons in the area. I don't think getting a large number of students would be an issue at all...especially since I have taught in my area for several years, so I'm not a total unknown.

    I've always been the employee, never the owner of a business, so I'm starting from square one here. I could use some tips and advice when it comes to starting up.

    How did you and the owner decide on a price...was it charged per stall or for the facility as a whole?

    Who was responsible for what as far as maintenance (mowing, dragging ring, etc) and repairs (broken boards, plumbing issues, etc)...owner or renter?

    What kind of insurance did you need to get to cover yourself and your business?

    Who came up with your contract?

    Anything you can think of to share with me would be great. Thank you!

  • #2
    Do you have school horses? Can you afford to get some? A lesson business needs schoolies, not just boarders to take lessons. Think you need to figure out a basic business plan before you can even know how much to budget for rent or even how many stalls to rent.

    It's going to be missing the specifics concerning the rent but you need to start with the business itself. Feed and bedding costs are pretty much the same, so is what you need to support yourself, your vehicle(s)and trailer, insurance etc. so you can ballpark a lot if it.

    Property maintainance, utilities etc depend on your lease. It's probably easier to rent by dry stall in an exsisting facility with everything else included. Costs more but, as a start up, save you from sinking tons of $$$ in must have equipment and utility hook up/deposits just to get running and starting way in the hole financially.

    As you build a reputation and client base not to mention make some money, you can look at moving and taking on more responsibility for the property.

    Watched many start ups over the years. Most failed because they drastically underestimated running costs and took on more property responsibility then they could afford to keep up with. The horse part is the easy part.
    Last edited by findeight; Mar. 5, 2015, 12:14 PM.
    When opportunity knocks it's wearing overalls and looks like work.

    The horse world. Two people. Three opinions.

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    • Original Poster

      #3
      I am planning to buy some good school ponies and horses, yes. I have been researching and putting together other parts of my plan, but this is one part I don't know how to start with. Another question: if renting a facility per stall, do you pay for use of other rooms, like the tack room? Do you pay rental on any farm equipment, is that typically included, or did you provide your own? don't worry about the rest of my business plan, it IS in the works!

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      • #4
        I wasn't a business, but I rented a small farm and I was responsible for all the day to day maintenance - mowing, snow removal, minor repairs etc. For major projects (new garage door, some windows replace in one of the buildings), my landlord was responsible.

        In my case I bought all the equipment needed (lawn tractor, snowblower, manure spreader etc.) except the hay elevator that was already there.

        FWIW, I rented an 18 stall barn (though a few stalls were unusable and 2 were converted into double stalls - but I didn't need that many anyway) with an additional large storage building for hay and bedding attached, 3.5 acres (mostly fenced), a 1 bedroom house, garage and small separate storage building for only $850 a month.

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        • #5
          Leasing stalls in an exsisting facility is referred to as a "dry stall" meaning you bed and feed on your own dime and time. Everything else is typically included and the barn does all the work with their staff and equipment. These services bump up your per stall rate but, again as a start up? You don't have to buy a tractor, drag, manure cart, worry about manure disposal, pay the utilities, keep the well pumping and patch the place up-priced lumber lately?

          Some of these places let you handle your own boarding, others charge and bill the client, or you if it's your horse, separately.

          Theres a place near here that runs this way. They must have about 60-70 stalls. Trainers just lease the stalls ( I think the barn now feeds and beds to avoid neglected horses and deadbeat trainers) barn has indoor ring, several outdoor rings, mini CC course, lots of turn outs and an excellent location close to mid to upper range housing and potential clients with discrectionary income and raising families with little girls who want to ride and adults looking to get in. It gets drive by action from prospective clients and everybody knows where it is.

          As you would expect it's not perfect and there are disagreements but the contract is specific and place well enough maintained. I mention it because I think every trainer in this part if the state from up downer to AA show horses to the Dressage folks and Eventers has been in that barn at some point or other in their careers. Start ups, recovering from split ups, relocating from another area, needing a place when the barn they leased sold out from under them, one was there when the home barn had weather damage. Nobody loves it, sometimes they don't even like it. But they take advantage of the set up when they heed to and get new clients out of it they take with when leaving.


          Dont know if there is anything comparable where you are but this example ought to help you start thinking about ways to get started without getting in way too deep. Help you know what questions to ask looking for stalls in an exsisting facility in a good location with arena(s) to teach in year round.
          When opportunity knocks it's wearing overalls and looks like work.

          The horse world. Two people. Three opinions.

          Comment


          • #6
            You should contact your small business association, because you need help with the business set up and management. They won't be able to help you with the horse part, but they can help you with the contracts for the land/facilities rental and the bookkeeping and numbers part.

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