ROI
The Potential of Short and Long-Term Rental Market for a Farmhouse
On average, a gross rental yield of 8% to 12% is considered reasonable for short-term rental properties.
These figures are predominantly based on a market with occupancy rates of less than 50% of the total potential for these locations.
A genuine and productive farmhouse offers guests an experiential stay. By implementing various events during the slow season, we can increase occupancy rates to at least 75%. Consequently, our income from short and long-term rentals can surpass that of normal rental properties, offering authentic farm experiences. In this way, we can increase the return on investing.
The Natural Phenomena
What return on investing can a small organic farm generate?
When considering a small organic farmhouse situated on a property spanning one or more hectares, it's crucial to assess its production capabilities and potential income. ''The one hectare mindset''
These inquiries are essential to determine what can be nurtured and harvested, as well as the revenue it can yield. By innerstanding these factors, we can explore how to maximize productivity and establish multiple layers of production to ensure a consistent income stream from the farm's output.
In the initial stages of farm design and developing, we prioritize assessing the property's potential and crafting a system with diverse layers. This approach allows for the gradual establishing of various income streams, ensuring long-term stability and sustainability.
Considering that a small organic regenerative farm can easily produce up to 100 boxes of mixed organic vegetables with fresh herbs, each priced around €40, we could potentially earn around €200,000 per year. This not only makes us providers of healthy, fresh food for our neighbors but also sets a positive example in a world where access to good, nutritious organic food is declining due to government regulations on farmers.
Organizing events for the slow season
The beauty of having a living farm with different production layers is that you can host various events to attract guests. A living organic farm is like a university where many can learn how to be self-sustainable. These events not only bring in more bookings for the farmhouse but also provide a good income for the farm team. Our chefs offer a farm-to-table experience, and our head farmer can show guests all the aspects of running a small organic, multi-layered farm.
This type of accommodation appeals to guests seeking a unique and immersive experience, such as farm stays or agritourism. Here are some reasons why this niche market can be attractive:
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Nature and Tranquility: Farmhouses offer guests a peaceful retreat surrounded by nature, away from the hustle and bustle of urban areas. The presence of a vegetable garden adds to the appeal, allowing guests to reconnect with the land and enjoy the beauty of organic farming.
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Farm-to-Table Experience: Guests are often drawn to farm stays for the opportunity to experience farm life firsthand and sample fresh, locally grown produce. Having a vegetable garden onsite allows guests to harvest their own ingredients and enjoy farm-to-table meals prepared in the farmhouse kitchen.
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Educational and Recreational Activities: Farmhouses with vegetable gardens can offer a range of activities for guests, such as guided farm tours, gardening workshops, cooking classes, and outdoor dining experiences. These activities provide opportunities for guests to learn new skills, connect with nature, and create memorable experiences.
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Health and Wellness: Many travellers are increasingly interested in health and wellness experiences, including organic farming and sustainable living practices. Staying at a farmhouse with a vegetable garden allows guests to engage in activities that promote physical activity, relaxation, and healthy eating.
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Family-Friendly Accommodation: Farmhouses with vegetable gardens are often popular choices for family vacations, as they offer spacious accommodations, outdoor play areas, and opportunities for children to learn about agriculture and nature in a safe and educational environment.
Overall, the combination of a farmhouse setting with a vegetable garden provides a unique and memorable experience for guests seeking a tranquil retreat, farm-to-table dining, educational activities, and opportunities to connect with nature and sustainable living practices.