Farm Stay Startup Costs for a 20-Unit Working Farm Stay
To open this farm stay, plan for property and lodging CAPEX plus enough cash to cover pre-opening expenses and early operating runway The researched model starts with 20 rentable units, 550% Year 1 occupancy, midweek rates from $150 to $280, and weekend rates from $250 to $450 Known opening overhead is $29,500 per month in fixed property costs plus $41,125 per month in Year 1 payroll, so each month of runway adds $70,625 before guest supplies, booking commissions, food, and beverage costs Total funding need is higher than buildout CAPEX because launch marketing, insurance, permits, deposits, training, and cash reserve sit outside the physical buildout budget
Calculate Fuding Needs
Startup cost summary
Startup cost table for a 20-unit farm stay across five accommodation types, split between CAPEX and excluded cash needs.
Highlighted CAPEX$515,000Base planning example
Excluded cash needs$629,000Outside CAPEX total
Funding need$1,144,000CAPEX + excluded cash needs
Cost Category
Base Estimate
Main Cost Driver
CAPEX Calculator
Initial Room Furnishings
$150,000
Guest-room fit-out and furnishings
Yes
Commercial Kitchen Setup
$120,000
Kitchen equipment and install
Yes
Vehicle Fleet
$90,000
Guest transport and farm operations
Yes
Farm Equipment Purchase
$80,000
Farm tools and guest experience setup
Yes
Spa Facility Buildout
$75,000
Spa buildout and equipment
Yes
Working Capital Runway
$629,000
Month 9 runway from $70,625 monthly burn
No
Estimate Startup Costs with Calculator
Startup CAPEX Calculator
Estimates capitalized startup assets only for a farm stay opening.
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CAPEX only Excludes working capital, payroll runway, deposits, debt service, monthly fixed expenses, booking commissions, food cost, beverage cost, guest supplies, and other non-CAPEX funding needs. Each month of operating runway adds $70,625 before variable costs.
Farm Stay’s CAPEX tab shows what?
Farm Stay’s CAPEX tab shows startup costs and timing. Open the Farm Stay Financial Model Template and review depreciation, amortization.
Screenshot highlights
Startup costs
Launch timing
Depreciation and amortization
Compare 3 Startup Cost Scenarios
Scenario table
Startup costs swing fast here because rooms, food service, utilities, and guest amenities scale with the launch model. Lean keeps the farm simple, Base matches the 20-unit plan, and Full adds more buildout and runway.
Lean, Base, and Full farm stay launch cost comparison
Scenario
Lean LaunchOwner-operator test
Base LaunchLender-ready launch
Full LaunchDestination farm stay
Launch model
Use a few existing farmhouse rooms or limited converted space with simple breakfast and direct bookings.
Open with the modeled 20 units: 4 Barn Suites, 3 Cottages, 6 Loft Rooms, 5 Farmhouse Rooms, and 2 Glamping Tents.
Add more units, cabins, expanded amenities, larger food service, and broader farm-experience infrastructure.
Typical setup
Own the property, keep the site work light, use existing septic, and avoid major amenity buildout.
Match the research model with full room buildout, core food service, and a mix of direct booking and paid channels.
Assume acquired property or major upgrades, utility work, spa and workshop buildout, and heavier paid channels.
Cost drivers
Room refreshes
basic furnishings
light site work
direct bookings
small launch marketing
20-room buildout
kitchen setup
furnishings
staffing
launch runway
Extra units
utility upgrades
spa buildout
paid channels
larger staff
Planning rangeCAPEX only
$300,000 - $550,000Small cash band
$950,000 - $1,250,000Bankable launch
$1,500,000 - $2,200,000Largest cash band
Best fit
Fits an owner-operator who wants to test demand before adding more rooms or services.
Fits a team that needs a financeable launch and can carry the $70,625 monthly burden from day one.
Fits a destination concept that wants a bigger guest offer and a longer runway before cash turns.
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Planning note: These scenario ranges are researched planning assumptions, not exact quotes.
How do I fund a farm stay business?
Fund Farm Stay with a lender-ready model that ties CAPEX, pre-opening spend, and an opening cash reserve to cash flow and debt service. Here’s the quick math: 20 units create 7,300 room-nights a year (20 x 365), so occupancy becomes the real driver of sellable nights, with midweek ADRs of $150 to $280 and weekend ADRs of $250 to $450. Lenders will also want proof the business can cover $70,625 in monthly overhead before variable costs and any loan payment, and the Year 1 revenue mix adds $34,000 from food and beverage, events, spa services, workshops, and retail.
What lenders expect
Show a clear CAPEX schedule.
List pre-opening costs by line item.
Keep an opening cash reserve.
Prove debt service capacity.
What to model
Use occupancy to set sellable nights.
Split midweek and weekend ADRs.
Include $34,000 in Year 1 extra income.
Use a clear source-and-use table.
How much money do I need to start a farm stay on my farm?
You need enough capital to cover the build path plus early cash burn: if you already own a suitable working farm, start with room conversion, guest separation, parking, utilities, compliance, furnishings, insurance, launch costs, and working capital for the known $70,625 monthly cash burden before variable costs. Before sizing the raise, pressure-test demand with What Is The Current Engagement Level Of Guests At Farm Stay?, because the model opens with 20 units, grows to 23 units by Year 3, and reaches 25 units by Year 4.
Lowest-CAPEX path
Use existing farmhouse rooms first
Separate guests from farm operations
Fund utilities, parking, and compliance
Cover $70,625/month before variable costs
Bigger funding path
Property purchase can dominate costs
Barn conversions need contractor scope
Cottages add more site work
Cabins, septic, access cost most
What hidden costs should I budget for before opening a farm stay?
Before opening a Farm Stay, budget for more than renovations: permits, inspections, legal and tax setup, website, booking tools, photography, staff training, linens, signage, opening stock, and launch ads; for return context, see How Much Does The Owner Of A Farm Stay Business Typically Earn?. The monthly fixed load is about $29,500 before payroll, and Year 1 working capital should also cover $41,125 in monthly payroll plus slow booking periods. Guest supplies can run 30% and booking commissions 40%, so cash flow matters as much as the buildout.
One-time setup
Permits and inspections
Legal and tax registration
Website and booking setup
Photos, linens, launch ads
Monthly burn
$15,000 lease or mortgage
$2,500 property taxes
$1,800 insurance and $3,500 utilities
$4,000 maintenance plus $1,200 equipment lease
Key Takeaways
Land readiness can cost even owned-property founders.
Buildout costs vary sharply by unit type.
Permits and utilities cap 20-unit opening risk.
Pre-opening setup is separate from monthly operating costs.
Farm Stay Core Five Startup Costs
Property and Site Readiness Startup Expense
Land Cost
Property cost and site work should be priced separately. Month 1 carries $15,000 lease or mortgage, $2,500 property taxes, $4,000 maintenance, $1,200 equipment lease, and $1,000 security, or $23,700 a month. Owning land does not remove readiness spend if roads, drainage, fencing, or guest areas still need work.
Site Scope
This budget covers the physical setup that makes the farm guest-ready: access roads, parking, signage, lighting, fencing, drainage, and separation between animals, equipment, and guests. The key input is whether the property already supports 20 guest units and whether the farmhouse and grounds need heavy repair or conversion.
Keep It Tight
Keep acquisition and site upgrades apart, then price each quote line by line. Ask for road, utility, and fencing bids before you fund the build. One clean rule: if guest traffic still shares paths with farm work, the property is not ready.
Price roads before décor.
Fix drainage first.
Separate guest and work paths.
Readiness Check
Stress-test the site before closing. Ask if roads can handle guest cars, if guest zones are fully separated from active farm work, and if the existing farmhouse is safe and comfortable for stays. If any answer is no, treat that as upfront CAPEX, not a minor fix.
Furnishings, Amenities, and Farm Experience Startup Expense
Durable setup
Durable items are the one-time guest assets: beds, mattresses, seating, lighting, bathroom fixtures, kitchen or breakfast-service gear, outdoor seating, Wi-Fi hardware, room locks, guest signage, and safety barriers. With 20 units, per-room choices multiply fast, so this line needs quotes by unit type, not one blended number.
Consumable stock
Consumables are the repeat-use items: linens, towels, toiletries, cleaning supplies, welcome items, and pantry stock. The opening stock is a pre-opening cash item, while Year 1 variable guest supplies are modeled at 30%. Here’s the quick math: use unit count, par levels, and months of coverage.
Price by item and count
Set opening stock levels
Separate refill from launch cash
Farm experience
Farm experience setup covers tour paths, animal-viewing areas, workshop space, guest rules, and barriers around equipment or animals. This is guest safety and flow, not décor. Cost it with path length, barrier count, signage, and space buildout. If guests cross active work zones, rework costs usually rise.
Keep it lean
To control this budget, standardize room packages and reuse the same fixture set across units. Mix only where the room type forces it. The big mistake is treating linens, pantry stock, and guest gifts like fixed assets; they’re not. That split keeps the opening budget clean and stops Year 1 refill costs from hiding in startup CAPEX.
Lodging Renovation and Guest Room Buildout Startup Expense
Major CAPEX
Treat this as major CAPEX, not launch ops. It covers bedrooms, bathrooms, insulation, HVAC, plumbing, electrical, fire safety, accessibility, privacy upgrades, contractor contingency, and inspection rework. For the modeled 20-unit opening, price each unit type separately, then roll vendor bids into a per-unit and total buildout range.
Unit Mix
The mix drives cost. Farmhouse rooms may reuse existing structure, so they often need less shell work. Barn suites and loft rooms usually need conversion scope. Cottages need standalone systems. Glamping tents shift spend outside into pads, hookups, and access. Here’s the quick math: 4 + 3 + 6 + 5 + 2 = 20 units.
Estimate Inputs
Build the number from vendor quotes, not guesses. For each unit type, capture scope of work, materials, labor, code fixes, and inspection closeout. Then multiply by unit count and sum the 20-unit plan. Keep décor, linens, guest supplies, booking commissions, and payroll out of this bucket.
Control Spend
Control spend by reusing sound farmhouse structure, standardizing specs across repeated unit types, and bidding barn, loft, and cottage scopes separately. Don’t buy finishes before the inspection path is clear; late fire-safety or accessibility changes can force rework. For glamping tents, price the outdoor base, not just the tent shell.
Permits, Utilities, and Code Compliance Startup Expense
Local approvals
Permits are a real gate, not a paperwork footnote. This bucket can include zoning approval, lodging permits, health department review, septic capacity, well water testing, fire alarms, extinguishers, emergency lighting, occupancy rules, parking, inspections, and possible accessibility compliance. US rules vary by state, county, and city, so local review has to happen before funding is final.
Utility load
The opening plan uses 20 rentable units, so septic, well, electrical, and fire-safety capacity are core risks. The known utility operating cost is $3,500 per month starting in Month 1, but startup upgrades are separate CAPEX. Price this with local quotes and inspection results, especially if food and beverage service runs on the same systems.
Cut rework
Ask the county and utility vendors one blunt question: can the current septic, well, electrical panel, and fire systems support 20 guests units plus food service? Get that answer before closing or committing buildout dollars. The cheapest mistake is a pre-opening site review. The expensive mistake is paying twice after a failed inspection.
Funding gate
Before funding is finalized, budget for a local code review and ask for written confirmation on zoning, occupancy, parking, septic, water, and accessibility. If any system is undersized, treat the upgrade as upfront CAPEX, not a later operating fix. That keeps the opening plan tied to what the property can actually support.
Insurance, Marketing, Booking, and Launch Readiness Startup Expense
Pre-opening spend
Treat this as a pre-opening bucket unless the spend creates a durable asset. It covers liability and property insurance, legal documents, accounting setup, tax registration, website, booking engine, photography, launch ads, staff onboarding, cleaning process setup, and guest communications. In Month 1, model $1,800 for insurance plus $500 for admin software.
What to include
Build the budget from quotes and timing. Decide what is one-time and what lasts after opening. The 40% Year 1 booking commission is a running cost, not a setup cost. Here’s the quick math: launch cash also has to support $493,500 in annual staffing, or $41,125 per month, plus $34,000 in extra income beyond room revenue.
Separate setup from monthly fees
Use vendor quotes, not guesses
Fund the full opening ramp
Control the run-rate
Keep this spend lean by batching legal, tax, site, and booking work before ads start. Don’t overbuild the website or photography before the room mix is locked. Don’t confuse commissions with launch spend, and don’t cut onboarding too hard; weak cleaning or guest messaging hurts reviews fast. One clean rule: pay once for setup, then watch monthly fees.
Launch cash
Set launch cash against the full first-year plan, including $34,000 in extra income beyond room revenue. If the cushion is thin, ads, onboarding, and guest support will be the first places to break. Keep the reserve in place until bookings and service are stable, because payroll and commissions start before the business settles.
