Services Barns Could/ Should Offer to Increase Profit

[Fence.Hopper]

Found out about a facility near by that is for sale at a surprisingly affordable rate for being just outside the metro area (20ish min from “the downtown”) with 19 stalls, 70 X170 indoor, separate hay barn, unfinished (how unfinished is TBD) apartment in barn (no house) all on 6 acres right off of an interstate highway. We have been loosely looking/ considering a facility not unlike this one (originally looking for less stalls + more acreage + house, but that would put us further away from the city) but didn’t expect to find anything like it in this area and expected to have to move out of state to find something more suitable. There is a decent horse scene in the area with rated and local level shows and seemingly all lesson programs are full and most (good) boarding barns are full or near full. The caveat is that I have (had?) no aspirations to open a lesson program or boarding facility for a multitude of reasons.

SO I am wondering what other services could such a facility offer that would bring in some revenue (not looking to pay the mortgage with the revenue but to help offset it some would be great). Thus far I am thinking along the lines of hosting a schooling show series (especially in the winter as those are limited here, but due to arena size would likely be limited to dressage shows?), hosting clinics, layover board for people passing through (since it is off the highway), and retirement and/ or layup board on a limited basis (I have 2 horses and would want them to have some company, as well as having some rehab therapy products, such as Theraplate and red light pads, so could offer those). I’m hoping you all might have some suggestions!

[Scribbler]

Do you want to increase profit? That suggests you already have an idea of turning a profit. That’s often hard to do with the horse business.

Or do you mean “ways to generate revenue to offset the mortgage?” That’s a different question.

I would thibk a property with no proper house on it will be much cheaper because most people won’t want it. Presumably at some point a bigger farm was split up and the farm house is on a neighboring property.

Check zoning. It is possible you cannot build a house at all because of setbacks etc. In which case this is a bit of a white elephant property when you decide to sell. Most people who can afford acreage do not want to live in a barn apartment. I wouldnt mind but I also would not pay $5 million to live in a barn which is the going price for your acreage in my area

[Fence.Hopper]

Ah good catch! My train of thought was “increase” in regard to other existing barns and what their clients might suggest to increase their existing profits (I don’t think my brain is fully functioning after a long day of work). Apologies, that must be confusing!

Yes, I am thinking that is what happened with this property as there is a house on the neighboring plot, unsure about the zoning but will definitely look into it! And $6 mil! I would drop dead - I cannot imagine that much for 6 acres!!

[Fence.Hopper]

The SO offhandedly (accidentally) pitched renting a block of stalls to a trainer as dry stalls, which I think would work quite well for our needs/ desires (having the possibility of having our horses cared for during vacation, having a few other horses on property to keep them company and their riders to keep me company, but not having to do the care ourselves). Of course it is dependent on finding a situation that works and someone that is interested.

Still looking for other suggestions as I have no idea what, if anything, will stick!

[TheJenners]

@Fence.Hopper

The SO offhandedly (accidentally) pitched renting a block of stalls to a trainer as dry stalls, which I think would work quite well for our needs/ desires (having the possibility of having our horses cared for during vacation, having a few other horses on property to keep them company and their riders to keep me company, but not having to do the care ourselves). Of course it is dependent on finding a situation that works and someone that is interested.

While attractive, you won’t be likely to find a trainer to do this if you aren’t supplying the “barn help” as part of the deal. Most trainers, especially those who don’t own property and have to lease or pay board themselves, are barely making by and don’t have the time or leftover energy to feed, turn in/out, and muck stalls in addition to ride client horses and give lessons. If a trainer came with a barn rat, maybe. Plus who does the maintenance or is responsible for the financial aspect of the wear and tear? You, or the trainer who is using it most?

[Tha_Ridge]

I disagree… Renting dry stalls is quite common where I live (the NE) and how my current trainer runs her business. She handles everything from manure removal to hiring her own staff to ring maintenance.

[StormyDay]

Renting dry stalls, especially for the winter months to use the indoor, may be really lucrative. Also, allowing trailer ins to use the indoor.

I’d probably avoid renting a big block of stalls to one trainer, because I’d be worried they would end up taking over the barn and arena.

Schooling shows can give a good profit if ran well and if you are in an area that has enough clientele. I wouldn’t rule out schooling jumper shows. You just allow warmups in between heights.

Not really boarding barn related, but washing blankets can be a good business. I do that on the side, and it’s a relatively easy way to make money.

[mvp]

OP, how much time do you have to put into profit generation?

I love the schooling show idea because the work and pain of having all those folks on your place is limited and defined.

Everything else will depend on what your local market is missing.

With just 6 acres, I think retirement is out. That’s because healthy horses will need way more room to just be wild horses outside. And the high-maintenance retirees that need a barn-and-turnout situation will take almost as much time from you as a horse in a program.

But if you have time, and boarding is so expensive that the full training programs ask their clients to send their injured horses away for rehab, you could perhaps do this. If you have a larger, professional lay-up facility nearby, don’t enter that market. You’ll have to spend too much on specialized equipment (I’m thinking water treadmills) to catch up.

I do like the idea of renting out dry stalls to a pro. Pros not owning their facilities is becoming more and more common these days. Let them be in charge of doing all the day-to-day work or hiring their own staff for that. IMO, you should take care of the larger farm maintenance projects (mowing, fences, repairs) and charge accordingly. Be prepared to have to spend more time and money on arena footing and maintenance than you thought, or than you think you need for just your two horses. IMO, where all else is equal, the barn that has a stable lessee of dry stalls and/or long-term boarders is the one with well-maintained footing.

[trubandloki]

With only six acres do you have some place to park the trailers associated with a schooling show?

With no warm up ring, winter shows will have to allow for warm up time in the main ring, which will lower the number of riders you can get thru the ring for the day, keep that in mind. (Unless you are somewhere that winter just means it is not as hot and people can warm up outside.)

The downside to renting out dry stalls and leaving care to the person renting is that they might not treat your property how you want it treated. You might end up with some very abused turn out areas and an indoor that is no longer flat.

[Smiles]

Something else to consider you will have to have dumpsters for manure pick up or something like it. That will get expensive really quick.

Also storage where are all the shavings and hay going to be stored?

19 stalls will you fill them all. If so what will the turnout situation look like? You won’t have grass for long with those numbers.

If you are offering dry stalls will there be access to a bathroom facility?

[Angela_Freda]

Multiple trainers renting blocks of stalls smells like a disaster waiting to happen to me. Personality conflicts, drama galore. Feuds over time in the indoor. No thanks.

One trainer you know, and respect but isn’t a friend who will abuse the relationship would be a great find, but needle in a haystack?

How much profit, is there, in hosting shows? I wouldn’t think much, but I don’t actually know.

Six acres is small. Would zoning allow dog boarding and doggy daycare?

[trubandloki]

Actually, does zoning allow boarding at all with that amount of acreage? Worth checking that out, just because the person before did it, does not mean it is allowed. Also, are there any rules about number of livestock versus the amount of acreage?

[ladyj79]

Consider whether you could offer something that would potentially cost you very little with less liability than live animals like vehicle, boat, rv storage. You could do some covered and some uncovered on a couple acres and have way way way less drama. And overhead.

[Scribbler]

All the trainers here rent facilities unless they are sitting on dad’s old dairy farm in the Agricultural Land Reserve that has been in the family since 1981 or 1955. You can’t spend $5 million on land and make a profit boarding horses. But it’s also hard to make a profit as a trainer renting dry stalls at $200 a month each or a barn for $3500 a month.

I would agree that if you rent dry stalls just go with one trainer to avoid turf wars and poaching clients. Also really think about o
If you bought 6 acres and a barn apartment to live above someone else’s lesson program 6 days a week from 4 pm to 8 pm, plus all day Saturday and Sunday.

Also their holiday riding day camps and visiting clinicians and and schooling the batsht young OTTB in the mornings. Also trainer will want to run the schooling show and keep the profits.

A good trainer will be on the property up to 12 hours a day and will be doing everything they can to maximize revenue because their profit margin will be slim. A good trainer will be running a buzzing little business right under your feet clients coming and going.

A bad trainer will go broke, break your wheelbarrow, skip out on the last month’s rent, and abandon a skinny unbroke project horse when they finally flit. So you want a good trainer! But do you really want to live upstairs from a successful training program and have your arena always full of their clients?

[joiedevie99]

@TheJenners

While attractive, you won’t be likely to find a trainer to do this if you aren’t supplying the “barn help” as part of the deal

This is basically the only way things work around here. Trainer rents a facility (or a block of stalls at a facility) and runs their business. What comes with the stalls varies, but it’s almost never labor or supplies. Usually it includes electricity, water, use of the manure dumpster, and property maintenance (mowing/plowing, fixing fences).

[bdj]

Depending on where you’re located, if you have adequate parking and the footing in your indoor is appropriate, you might see about hosting dog agility trials. The clubs generally provide all their own equipment, etc.

[StormyDay]

This is a great idea!
Adding on to say don’t rule out western events. Obviously not barrel racing or anything that requires a ton of room, but showmanship, HUS, WP, Trail, etc. There’s less equipment needed (except maybe trail classes) than most English events and they are an often overlooked sector.

[CHT]

Dog Agility, 4H clubs (not just horse), clinics

If there is a track nearby, our neighbours used to charge $$ letting racehorses have downtime or rehab at their barn.

Your arena is too small to fit a full size dressage ring, and seems small for other types of shows as well…maybe good for small club (thinking 4H) shows though.

Used tack store?

[Angela_Freda]

The location, near a Hwy is why I thought of dogs. Doggy daycare was big in my area, where everyone works an hour + away in NYC, pre pandemic

[Angela_Freda]

Yep, a barn I boarded at sold to a dog agility, training group.