# Rental value of barn space?



## dlskidmore (Apr 18, 2012)

How do I set a rental value on barn space and land? The fellow selling us his house needs to rent barn space for a bit, which may help us out with agricultural taxes, and cash flow while we get up and running, but I need to name him a fair price. I'll be letting him use five stalls, 2-3 acres of attached pastures, and the hay lofts. We'll retain use of the garage section and one stall. His temporary home (they're still looking for a place to move the alpacas to) is just 6 miles down the road, and I'll have no requirements to take care of the animals.

I'm giving him the first month in exchange for his leftover supply of coal. He's going to throw in snow plowing and tilling while he's a tenant. I will likely benefit from lower taxes by renting to him.

He does not have a lot of options, there is another barn he knows he can use but the alpacas won't have access to the outdoors there, but I don't want to take advantage of him, so I want to set the price fairly.


----------



## dlskidmore (Apr 18, 2012)

I found a helpful document that lists the costs of renting out a barn to consider.


----------



## dlskidmore (Apr 18, 2012)

It is occurring to me that the seller has known for a couple years that he was getting out of the business, and a few more months will not likely make a difference in the salability of his animals. I may need to price high just to motivate him to try the sale barn if he has no other options.


----------

