Pet Boarding Business Overview
Pet boarding facilities provide temporary care and housing for pets when their owners are away. These businesses offer supervised accommodations, feeding, exercise, and monitoring services for pets, ranging from overnight stays to extended periods. Boarding facilities typically operate year-round, with increased demand during holidays and peak travel seasons.
The following are the most common business models in the pet boarding industry:
- Traditional Kennel/Boarding Facility: A dedicated facility with individual spaces for pets, offering basic care and accommodation services
- Luxury Pet Resort: High-end facilities featuring premium amenities like private suites, indoor/outdoor play areas, and specialized activities
- Home-Based Boarding: Providers who offer pet care services from their residential properties
- Mixed-Service Facility: Boarding facilities that combine multiple pet services under one roof
Related: Checklist To Start A Business
How Do Pet Boarding Businesses Make Money?
Pet boarding businesses generate income primarily through daily boarding fees charged for overnight pet stays. Owners pay a base rate for each night their pet stays at the facility, which includes standard care, feeding, and housing.
Additional revenue sources these businesses might use include:
- Daycare Services: Daily rates for pets that need supervision during working hours without overnight stays
- Add-on Activities: Extra charges for additional playtime, special treats, or enhanced monitoring services
- Grooming Services: Income from bathing, brushing, nail trimming, and other grooming needs
- Training Programs: Fees for behavioral training sessions during boarding stays
- Transportation: Charges for picking up and dropping off pets from their homes
Industry Statistics
Pet boarding facilities operate within the Pet Care Services industry under NAICS code 812910: Pet Care (except Veterinary) Services. Here are several statistics about the industry that highlight its performance and reach.
Pet Boarding Industry Size & Growth: The pet care services industry generated $14.7 billion in revenue during the last year, with pet boarding services accounting for approximately 47% ($6.9 billion) of this total. The industry has shown strong growth, with an annual growth rate of 6.0% over the past five years. This growth stems from rising pet ownership rates and increased spending on professional pet care services by dual-income households. (IBISWorld)
Number of Pet Boarding Businesses: The industry consists of approximately 9,000 businesses, with no single company holding more than 5% market share.
Pet Boarding Profit Margin: Pet boarding businesses typically maintain net profit margins of 10% to 25%. Luxury boarding facilities and those offering additional services often achieve higher margins.
States with Most Pet Boarding Businesses: The highest concentration of pet boarding facilities exists in California, Texas, Florida, and New York. These states show strong demand due to their large populations and high pet ownership rates. Additional states with significant numbers of pet boarding businesses include Illinois, Pennsylvania, and Ohio. (Bureau of Labor Statistics)
Startup Stories
Also See: Ideas for Naming a Pet Boarding Business
Costs To Start a Pet Boarding Business
Starting a pet boarding business typically costs between $75,000 and $1,000,000, depending on the size and type of facility. The lower range represents smaller operations or home-based services, while the higher range reflects larger facilities with more amenities.
Here are some of the larger expenses to plan for when starting a pet boarding business:
Building and Renovations: The physical space requires $200,000 to $700,000. This includes purchasing or renovating a building to accommodate proper ventilation systems, drainage, separate areas for different types of pets, and outdoor spaces. The facility needs washable surfaces, proper drainage systems, and temperature control systems.
Equipment and Supplies: Initial equipment costs range from $25,000 to $75,000. This includes kennels, cages, beds, feeding stations, cleaning supplies, and safety barriers. The facility needs proper storage areas for food and supplies, as well as commercial-grade cleaning equipment and security systems.
Insurance Coverage: Insurance costs typically range from $5,000 to $15,000. This covers liability insurance, property insurance, and worker’s compensation insurance to protect against accidents, injuries, or property damage that might occur while caring for pets.
Staff Training: Professional training programs cost between $3,000 and $8,000. This includes pet first aid certification, animal handling training, and safety protocol training for employees who work directly with pets.
These costs represent general estimates and will vary based on location and specific business needs.
Resources:
American Pet Products Association
International Boarding & Pet Services Association
Outstanding Pet Care and Pet Care Services Association