Taking on renting a livery yard

[maxusa]

Hi,

Am considering renting a nearby livery yard, and feel that combination of commercial/business and equine skills should stand me in good stead, wondered if anyone had any tips advice for me?

Am in process of looking at current revenue generated from yard, repairs needing done etc., and would be grateful for all advice.

Yard is small with only 16 stables that are currently all full.

Thanks

 

[Bosworth]

look at the state of the fields - fertiliser/weedkiller are expensive and need to be factored into your costs. have you got the tractor and implements to allow you to manage the land or will you have to buy them.

Have you got an arena - what state is that in. It is the constant maintenance that eats away at any profit you plan for. Cribbers destroy your fences, bargy horses break rails off or destroy electric fences are your gates decent.

ask to see bills relating to the yard for water/sewage, electric, maintenance, hay straw etc. And a full set of accounts.

talk to the liveries - find out if they are happy with the cost they are paying and when it was last increased.

 

[maxusa]

Hi,
Thanks for this. I am a livery at the yard at the moment, so know that there are fencing repairs etc. needed to be done. Arena is in good condition.

Currently all utility bills are paid by owner, since he has a farmhouse at the property and bills are not split, so do not know how difficult it will be to esimate that.

Owner takes approx £1600 per month in livery fees at moment and that is purely for supplying fields, stables and arena, since we pay for all our own hay/haylage and shavings from the locaql farmer.

Am trying to convince him to let me take yard on, and interested to know what other people feel is a fair monthly rental cost.
Thanks

Fi

 

[Rainbowrider]

Taking just £1600 per month, these must be DIYs ?

You could do some full livery. I think it's hard to make a profit from DIY unless you supply their feed, bedding, hay, haylage etc yourself.

 

[maxusa]

Yes, we are all DIY's and longer term plan will be to offer assisted and full livery.

Anyone any ideas how much rent I should be looking to paying?

Thanks

 

[Bosworth]

If the owner takes £1600 then i would expect him to want to get £1600 a month from you as rental income. He can get that from DIY's so he doesn't have to do much for it so what would you be adding to the equation? the trouble is you will not make enough money with DIYs only to pay you a salary and rent the yard. I would think that rent at £100 per box per month is a reasonable rate. TO be honest I own my yard - it is at home and we have 16 boxes - four of those horse are mine so we have 12 boxes bringing in income. Yes they pay for my horses, they cover the cost of all maintenance but I could not make a living from it if I had to pay rental for it. As it is I have approx £1000 a month from it for myself. But if I was renting the yard it would cost me in excess of £1500 in rental fees. plus insurance which is quite expensive.

 

[abina]

Hi well it's a very exciting project to be thinking about, but think hard first. I have a commercial livery yard which I own freehold. Even so each box must make £100 per week to make it pay and a small wage for myself. As well as the maintenance costs and repairs, don't forget water, telephone, broadband, electric, banking fees ( although most banks do give 12-18mts free) accountancy costs, tax, staff costs, fuel, disposal of muck, fuel for tractors, signage, first aid courses ( which although is not necessary is very handy as you are responsible for all visitors onto your yard, good old Health & Safety) and the all important insurance. Equipment that you may need, - tractors, school graders, paddock vacs, wheelbarrows and mucking out tools, water buckets, feed buckets, haynets ................. the list is endless. Also think about livery contracts, yard rules, - including who can do what and when, dogs on the yard,- loud radios , school rules, etc etc etc there are a hundred and one things to consider.
Don't be put off just think carefully and do your sums ! Get in contact with your local business link - they have some very good advisors if you are new to buisness. Good Luck. !