What a boarding kennel or pet resort costs to buy
Pet boarding is the acquisition where the licence is worth more than the kennels. Councils take three to twelve months to approve a new facility, which makes an existing approval the moat, and the market prices it that way. Here are the numbers.
What kennels sell for
| What you are buying | Price (recent listings) |
|---|---|
| Freehold, regional entry | $1.2m to $1.3m |
| Freehold, the typical cluster | $1.7m to $2.65m |
| Premium purpose-built resorts near capitals | to $4.3m |
| Business-only (property leased or bought separately) | $450,000 to $1.7m plus stock |
| Small daycare and grooming operations | $149,000 to $495,000 |
The bigger Victorian brokers often price the business and the property separately, a $1.7m business beside a $1.7m freehold, which lets a buyer choose full freehold or business-plus-lease. Earnings are almost always gated behind confidentiality agreements, and the strongest listings trade on real numbers: one recent business changed hands against $740,000 of stated annual profit.
The licence is the asset
Every serious listing leads with its approved capacity: licensed for 30 dogs, approved for 90, no dog limits. Approval headroom above the current build is priced as expansion value because the alternative, a new development application, runs three to twelve months through council with no guarantee, plus state codes of practice on top. When you compare two kennels, you are comparing licences first and buildings second, and any expansion claim in a listing that says "subject to council approval" is a hope, not an asset.
What else moves the price
Land and residences: these properties run 7 to 114 acres and frequently carry a second dwelling, which supports a manager or an owner-occupier lifestyle purchase. Add-on income, daycare, grooming, cattery wings, broadens revenue in nearly every listing above $1.5m. And forward bookings: holiday-period reservations booked months ahead are the closest thing this industry has to a contract book.
Financing a kennel purchase
Freehold kennels are property-backed deals at heart: the land and residence carry the lending and the business income services it, at roughly 6% to 9% p.a. as a working rule for property-backed facilities. Business-only purchases price on earnings with the goodwill leaning on your deposit or other property. A $2m freehold at 70% gearing needs about $600,000 of equity plus costs, which other property in your book can carry. Property-backed borrowers generally price around 6% to 9% p.a. and non-property-backed deals around 9% to 13%, with approvals commonly back in 24 to 48 hours. Start at business acquisition finance or the property-backed guide.
Frequently asked questions
How much does a boarding kennel cost to buy?
Freeholds run $1.2m at regional entry, cluster at $1.7m to $2.65m, and reach $4.3m for premium resorts near the capitals. Business-only purchases run $450,000 to $1.7m plus stock, and small daycare operations from $149,000.
Why does the council licence matter so much?
A new facility needs a development application that takes three to twelve months with no guaranteed outcome, so an existing approval is the moat. Approved capacity above the current build is genuine expansion value; expansion 'subject to council approval' is not.
Can I buy the business without the property?
Often yes: larger listings price the business and freehold separately, so you can buy the business and lease the site, or take the full freehold. The freehold path finances better because the land carries the lending.
How are kennel purchases financed?
Freeholds gear as property-backed deals with the business income servicing the loan. Business-only purchases price on earnings, with goodwill leaning on your deposit or equity in other property.
Licence, land and earnings, structured
Tell us the kennel and whether the freehold is included and we will come back with the structure, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.