How Much Does It Cost to Start a Pet Boarding Business?

Nate Jones, CPCU, ARM, CLCS, AU
Oct 29
2 min read

Starting a pet boarding business can be a fulfilling venture for animal lovers, but it requires careful financial planning. Whether you're opening a dog kennel, cat boarding facility, or full-service pet care center, understanding the startup costs is essential.

At Wexford Insurance, we help pet care providers protect their investment with tailored insurance solutions for doggy daycares, pet groomers, and training businesses.

Average Startup Cost Range

The cost to start a pet boarding business typically ranges from $50,000 to $200,000, depending on location, facility size, and services offered. Luxury pet resorts or full-service facilities may exceed $500,000, especially in urban areas with high demand. According to PetExec, facility and equipment are among the largest expenses.

Key Startup Expenses

1. Facility Acquisition or Lease

Securing a suitable commercial property is often the largest expense. You may choose to lease or purchase a space, with costs ranging from:

Leasehold improvements: $10,000–$75,000
Property purchase: $100,000–$1,000,000+
Monthly lease: $2,500–$10,000 depending on location

Explore a full breakdown from Nahf.org.

2. Renovations and Build-Out

Your facility must be pet-safe, clean, and functional. Renovation costs include:

Flooring, fencing, HVAC, plumbing: $20,000–$150,000
Soundproofing and layout customization for play areas and suites

3. Licensing and Permits

You’ll need local and state licenses to operate legally. These may include:

Kennel permits: $500–$10,000
Business registration and inspections: $500–$3,000

4. Essential Equipment

Outfitting your facility with the right equipment is critical. Expect to invest:

Kennels and crates: $500–$2,000 per unit
Grooming stations, feeding bowls, bedding, toys: $20,000–$50,000
Climate control and security systems: $5,000–$20,000

For a detailed guide, see ZenBusiness’s kennel startup cost breakdown.

5. Staffing and Payroll

Hiring trained staff is essential for safety and customer satisfaction. Initial payroll costs may range from:

$30,000–$100,000 for the first year
Includes training, uniforms, and benefits

6. Marketing and Branding

To attract clients, invest in:

Website, logo, advertising: $5,000–$25,000
Community outreach and promotional events

Need help with marketing and SEO? Visit Contractor Back Office for website and marketing support.

Insurance Costs for Pet Boarding Businesses

Protecting your business is non-negotiable. Wexford Insurance offers comprehensive coverage tailored to pet care providers. Here’s what you’ll need:

General Liability Insurance: Covers injuries and property damage. Average cost: $53/month
Commercial Property Insurance: Protects your building and assets. Often bundled in a BOP
Commercial Auto Insurance: For pet transport vehicles. Average cost: $147/month
Workers’ Compensation Insurance: Required if you have employees. Average cost: $124/month
Professional Liability Insurance: For grooming and training services. Average cost: $61/month
Equipment Insurance: Covers theft, damage, or breakdown of kennels, grooming tools, and cleaning systems

Final Thoughts

Launching a pet boarding business requires a significant investment, but with proper planning and protection, it can be a profitable and fulfilling venture. Wexford Insurance is here to help you navigate the risks and secure the coverage you need to grow confidently.

Contact us today.