Opinions?

I was with a friend last night who asked me what I thought she should be charging to lease out her farm.  She has a six stall barn with water and electric on twenty acres adjacent to state land for riding.  She lives on the property but will not be doing the barn work. There is no indoor arena. She has a woman who plans to put three horse there and board three others, and offered her $200, which seemed a little low to me!  This farm is located in cental new york about 20 miles from a city. Any thoughts out there on what a fair price would be? Thanks!

Beth

7 Responses to Opinions?

  1. pinehollow says:

    I have done leases on my former farm on two occassions. The things for your friend to do is to put pen to paper and make some columns.
    She needs to list what the barn cost her to build, taxes, insurance costs, (she will want to have liability for sure)utility costs, and figure out a fee to cover for wear and tear and damages done. Add these things up and divide by twelve. This should give her a more accurate outlook on what it costs her per month. Plus she needs to add on a small percentage for profit to make it worth her while. I agree that two hundred is not enough. Another thing to consider is to have a well written agreement between herself and the leasee. Bounderies need to be set!
    Good luck to her!

  2. Merlcann08 says:

    $200 seems really low. I would think $600-900 would be fair. If you figure board would cost about $300 per month per horse and this would include feed and labor, I estimated $100-150 for faciilities.

  3. GoodLookinGal says:

    Less than $300 is too low, and more than $600 will make this cost prohibitive to the person who wishes to lease. Leases are difficult for both sides, and generally don’t do well long term without a solid contract. Landowners tend to want things maintained as they would do themselves, and the person leasing the facility wants to make as much profit as possible, and will likely feel that they are getting the short end of the stick because they are doing all of the work and not making much money. Add any tough personalities and you have a “mission Impossible.” I would not recommend she lease her barn out at all.

  4. jns767 says:

    I think $250-$300 is reasonable. She’s not providing the bedding nor does she have an indoor arena or providing care. The barn I’m at currently offers full service board for $350.00 and there’s an indoor/outdoor arena.

  5. Beth says:

    I should clarify, she was offered $200 for the whole barn per month, not per stall. I am not sure she has considered the legal issues involved, nor did I. I appreciate the thoughts.

    Beth

  6. Tea says:

    $200 for all of the stalls is outrageously low. Full service board in my area is pretty expensive. $750 without an indoor is normal. Rough board is right around $200 per stall.

    If she is leasing to one person who is then boarding others, that can be a nightmare. As one poster said if the personalities get out of hand…one bad apple can make everyone’s life a living hell.

    The prospect of liability and wear and tear to her property should give her pause. No one will be as careful and respectful to her barn as she is.

  7. jns767 says:

    Wow, $200.00 for the whole barn? What a steal. I was thinking more like per stall – I believe that’s how my trainer does it.

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