​The Kennels Agency

Why Buying a Boarding Kennel or Cattery Is a Smart Investment

In a post-pandemic economy where stability and profitability are harder to come by, purchasing a boarding kennel or cattery represents a rare and valuable opportunity. These businesses not only offer the chance to work for yourself and from home, but they also combine strong financial returns with a lifestyle that many aspire to — often in idyllic rural surroundings.

High Demand and Limited Supply

The boarding sector — particularly kennels and catteries — has seen a significant reduction in capacity over recent years. Many facilities were forced to close during the COVID-19 pandemic and following the latest tranche of DEFRA regulations, which introduced more stringent operating requirements. As a result, there is now a noticeable deficit in available boarding spaces, especially during peak holiday seasons when demand consistently outstrips supply.

This shortfall has created a strong sellers' market. Boarding fees are rising, driven by high demand and limited availability. For new owners, this translates directly into higher income potential and strong occupancy rates — many facilities report being fully booked during key periods, with waiting lists becoming increasingly common.

Strong Financial Performance

Financially, these businesses are robust. Kennels typically show a reconstituted net profit of around 50%, with catteries often achieving even higher margins at approximately 60%. These are healthy figures that are rare in other sectors, especially for owner-operated businesses. Moreover, the consistent profitability of these enterprises isn't just anecdotal — they have proven to be remarkably resilient during economic downturns and even the COVID crisis. People continue to take holidays, plan home renovations, or face situations such as illness or incapacity, all of which can necessitate temporary pet boarding.

Tax-Efficient Borrowing and Business Expenses

From a financing perspective, buying a boarding kennel or cattery is also a highly viable proposition. The interest on a commercial mortgage is an allowable expense, meaning it can be offset against profits for tax purposes. This makes borrowing more affordable and helps to preserve working capital. In addition, repairs, renewals, and maintenance costs are all tax-deductible, further improving the financial outlook.

We also work closely with an award-winning specialist broker who can assist in securing lending that is tailored to the unique nature of these businesses, making the purchase process smoother and more accessible.

Lifestyle and Living Arrangements

Beyond the financials, the lifestyle appeal of owning a kennel or cattery cannot be overstated. Most of these businesses are located in attractive rural settings, offering a peaceful and rewarding way of life. As an owner, you have the benefit of working for yourself and operating from home — a major advantage in today’s flexible-working culture.

In some cases, the properties include two sets of residential accommodation, making them an excellent option for extended families, partnerships, or those looking to care for elderly relatives on-site. This added versatility increases the long-term value of the investment and opens up more options for how the property can be used.

Conclusion

In a market defined by uncertainty, boarding kennels and catteries stand out as stable, profitable, and lifestyle-enhancing ventures. With rising demand, limited supply, strong profit margins, and a tax-efficient borrowing structure, these businesses offer a compelling investment for those seeking both financial returns and a better quality of life. Whether you're looking to run a family business, escape the 9-to-5, or build a recession-proof income stream, now is an ideal time to consider purchasing a kennel or cattery.