Board rate increase

[foggybok]

@Jealoushe

Closer to $300-$500k now…$100k gets you footing and thats it.

yup, I’m in MN and the replacement cost of my arena is 400K. It would be cheaper for just the arena part, but still in that range.

MN requires better roof support than other areas given the snow loads we need to support, so costs may be cheaper elsewhere

I’m not sure exactly where the OP is, but 300 is near the max you get for pasture boarding in many areas in MN unless they are really close to the Twin cities or have some really great draw (like access to a park with riding trails). Mine have designated stalls they can use (and I will keep them in if the weather dictates). I have indoor and outdoor arenas and an enclosed bridle path. I provide hay and grain (with upper limit in grain, but I really don’t have anyone who hits that since I feed really good hay free choice.). I do have a 31 year old boarder whose owner provides some grain, but that was her choice coming in. I feed supplements, blanket, hold for farrier and provide other services for free (my boarders do not abuse this). I could probably raise my rates and the boarders would stay, but I have pretty loyal boarders (and only a few select ones).

Given the price of hay around here this year, I think most owners would understand an increase. The question is are they going to find a similar place for less money if they decide to move. When I started this place, people told me I was more money that others down the road. I said, “that’s fine, I understand the need to budget but this is what I need and if you want what I have to offer this is the price, you can check around and see what you get”. Some found a cheaper place and I ended up with boarders who appreciated what I bring to the table.

So for the OP, I’d check prices in the area, then figure out how much more to add. Then give your boarders sufficient notice.

[clanter]

@Chevrt

I’m looking to put up a 60x120 indoor arena in the spring.

I would like to increase the price of board to cover some of the cost. How do I approach that with boarders and what is a fair rate increase?

unless the enclosed arena is for Your use and needs there is no hope to justify the cost of its construction if the boarding rates discussed are the prevailing rates

(and for those there that do have arenas … when was the last time you had an insurance evaluation done? The replacement cost has increased dramatically)

[js]

Would your boarders prefer an indoor arena or a barn with stalls for their horses? If you are going to increase rates they might prefer a stall for their horse. Perhaps consider a barn and a covered arena, you could always enclose the arena in the future?

[trubandloki]

@js

Would your boarders prefer an indoor arena or a barn with stalls for their horses? If you are going to increase rates they might prefer a stall for their horse. Perhaps consider a barn and a covered arena, you could always enclose the arena in the future?

In Minnesota a covered arena is not much better than simply having an outdoor arena and the savings to build it versus an enclosed arena would be minimal.

[Sabino]

Where in Central MN are you? I’m just west of Minneapolis (suburbs) and I was paying $395 for stall board at a really great barn with an indoor arena. Depending upon where you are, $300 seems high for pasture board and not currently having an indoor.

[MsM]

First, I think you need to look at your current boarders and the profile of any potential boarders (post arena). Will your current boarders want an indoor and be able/willing to pay more for it? If not, you might need to let them know of your plans once they are firm and be prepared that some would leave for another pasture-only situation. It sounds like an indoor would benefit you and your lesson program and perhaps draw in more active year-round riders.

I would probably give boarders warning of rate increases starting in March or April. Those not interested should have time to move beforehand. Then plan for your final board rate. Assuming (not safe, I know!) the arena would be functional by summer, I would charge new boarders the new rate. I would likely charge existing boarders something halfway between the rates for six months or so. But you have to run the numbers and also consider the disruption of construction and what that means to the boarders.

[foggybok]

@clanter

and for those there that do have arenas … when was the last time you had an insurance evaluation done? The replacement cost has increased dramatically

yup, just had that done, went up to 400,000 for mine

[clanter]

@foggybok

yup, just had that done, went up to 400,000 for mine

I had mentioned it because the cost to replace our buildings had doubled in since Jan 2020,

There is the 80% rule which means that an insurer will only fully cover the cost of damage if the owner has purchased insurance coverage equal to at least 80% of the total replacement value .

[LCDR]

Another comment on the indoor arena. The planned size is smaller than a small 20x60 meter dressage arena. I am sitting here looking out at my small dressage arena, which seems quite big when it’s not being used. But put one rider and a trainer in it and it is tight. Two-plus horses would not work if both were really schooling simultaneously.

If you can possibly afford larger you will never regret it. My small arena (outside, of course) is on the arena builders winter schedule to be made into 20x60 meter with a 4 meter surround.

It will require excellent communication and PR to keep boarders from becoming disgruntled if it is perceived that they are being asked to pre-pay for your indoor arena. And it will always be the elephant in the room no matter how you try to explain rising feed costs, insurance, taxes, upkeep, and labor.

[Red_Barn]

@Mango20

I don’t really think you can raise the rate to fund the indoor before the indoor is actually available to boarders. Do a small increase now to cover increased costs, then a large increase once the indoor is completed.

I’d agree with this. The boarders aren’t able to use a planned arena right now, and might not for many months, so you can’t really charge for this as an existing upgrade. You could, however, let them know, well in advance, that that their rates will go up exactly X amount once the new arena is usable. Their responses to this will tell you a lot.

All that said, 300 bucks sounds very low, ever for the facilities you describe as existing now. I’ll second the advice above: double check prevailing rates and make sure you’re not selling yourself short.

[CHT]

I agree, but I think you need to let them know what they increase will be as soon as it is apparent you are making this upgrade and before they start speculating. A barn in my area went from very rustic (not even an actually barn) to building a fancy barn/arena, but waited until a month or two out to tell their existing boarders what the new rate would be.

[scislandsprite]

Unfortunately a covered arena isn’t that much cheaper than a fully enclosed indoor. I know a few people who have looked into doing this but a covered didn’t save them much so they just did full enclosed

[scislandsprite]

That’s not a bad arena size depending on how many boarders you have. It’s essentially a 20 by 40 meter arena which is a small standard dressage arena (forgetting the official term sorry). I’ve boarded at many places where the arena is 60-70ft wide and it’s fine as long as people aren’t going super fast or trying to jump a course with other riders in the arena. However, if you can afford to go wider now, definitely do that since it’s easier/cheaper to add on length later on.

[Sabino]

A covered arena is basically worthless in MN for half the year. Either do an indoor or don’t bother.

[Spudsmyguy]

That’s the size of the covered arena where I board. It’s very tight with any more than 2 people in it at a time and jumping, well, you need the entire thing.

[scislandsprite]

Yes I forgot to mention that I don’t jump so that definitely contributes to me not really minding a smaller arena. I can definitely understand that a bigger one would be helpful

[CHT]

Barn up the road is 60 by 120. Was small for jumping, but lovely for beginner lessons and western riding (which is what the owner does). They make extra money by renting for dog agility. Try to have somewhere to store obstacles (if you do that sort of thing), even if a shed outside the door. Having dog jumps in the corner took up an unfortunate amount of space. Also consider that parents need a place to sit to supervise minors if you board for under 18s.

[LCDR]

I boarded at a place with a covered dressage arena with nice mirrors. It was monopolized for ship in lessons, and became a sore point for the boarders who felt they were subsidizing the cost and receiving no riding time benefits. I can see something similar to this this happening with a small indoor arena in the MN climate.

Clear and fair guidelines for use would be helpful.

[eightpondfarm]

i haul in and pay for use of the ring. Though my lesson is private, (and in the middle of the afternoon on a weekday) boarders COULD come in and ride at the same time, but that has only happened twice in a year.

[Spudsmyguy]

A friend of mine (really!) boards at a barn where the covered arena floods every time it rains heavily. To the point where there are two large areas of standing water and the rest is soft and slippery. Basically the arena is unusable until it dries, which in the rainy PNW is about June (JK, not really). I heard this is a regular yearly occurrence where every two weeks or so the arena is flooding from the rain, and this is the only place on the property to ride. Plus they just increased the board.

Her horse is acting up from the boredom of not being worked enough so to keep him happy she has to haul out to a barn where it doesn’t flood. I mean one of the things she’s paying for is having a place to ride and that’s not being met. Horses are well cared for otherwise. She’s considering moving to a new barn because of this. What would you do? Move or suck it up?