Selling a Margaret River or South West Farm Stay: Separating Accommodation from Farm Operations

A farm stay can offer guests accommodation alongside a setting shaped by animals, paddocks and agricultural activity. That combination makes the sale more complex than a list of cabins and bedrooms. Tourism Western Australia promotes farm-stay accommodation around Margaret River and the wider South West, including properties offering animal experiences. www.westernaustralia.com Sellers should explain which parts of the farming operation support the accommodation business, what is included in the transaction and which activities belong to another owner or enterprise.

Identify the business being offered

State whether the sale includes accommodation only, the entire property and farm, or another defined combination. Explain which entity operates each activity and who owns the land involved.

A guest may see one integrated property while the accounting and ownership arrangements are separate. Establish those distinctions before preparing the information memorandum. Buyers need to understand the interests they would acquire and the arrangements needed to continue the accommodation experience being advertised.

Draw the boundary between guest and farm areas

Use a property plan to identify accommodation, guest facilities, permitted activity areas and working farm areas. Record any access provided across land excluded from the transaction.

If an animal-feeding activity occurs in a paddock owned by another party, explain the documented basis for access. Do not assume the activity continues merely because it has formed part of the guest experience for years. Purchasers should be able to connect the advertised experience with the land and rights supporting it.

Explain the earnings from each activity

Ask your accountant to distinguish accommodation receipts from agricultural sales and other income. Identify how shared expenses are allocated and disclose the basis used.

Where farm work, feed or machinery supports the guest experience, explain those contributions rather than treating the accommodation operation as independent of them. Avoid adding agricultural turnover to accommodation earnings without showing the relevant costs and ownership. The objective is a clear account of the business offered, supported by records that purchasers can examine.

Specify livestock and equipment inclusions

Prepare a schedule identifying any animals, machinery, fencing equipment and other farm assets proposed for inclusion. Establish ownership and any financing, hire or other arrangements affecting them.

Distinguish livestock used in guest activities from animals belonging to an agricultural enterprise outside the sale. Have the appropriate advisers identify the transaction documents and livestock identification or movement requirements relevant to the actual animals. A description such as working farm should not replace a specific schedule of what the purchaser receives.

Describe how guest activities are managed

Explain which activities the accommodation operator offers, who supervises them and what resources are required. Identify the arrangements when the usual person is unavailable or an activity cannot proceed.

Western Australia's agriculture department provides guidance on visitor controls and livestock biosecurity. www.dpird.wa.gov.au Ask the relevant specialists to assess how the property's guest activities and farm procedures work together. Present the existing management arrangements accurately, without implying that unrestricted visitor access to every farm area forms part of the accommodation offer.

Investigate ongoing agricultural responsibilities

Identify who currently arranges animal care, paddock management, fencing repairs and other work relevant to the guest-facing operation. Explain any agreement with a neighbouring farmer or external service provider.

Ask advisers to review how those arrangements would operate after the transaction. If accommodation buyers would need to engage additional help, make the existing dependence clear. Do not assume a purchaser's interest in tourism means they intend to run the same agricultural activities or possess the resources needed to do so.

Because livestock and farm activities can change during a campaign, agree how the inclusion schedule will be updated before settlement. Identify who confirms the final position and where changes are recorded. Buyers should receive current information rather than relying on photographs taken earlier in the marketing process.

A question farm-stay sellers should resolve

Can the property be marketed as an accommodation business if farming continues separately?

Explain the proposed structure clearly and have legal, planning and accounting advisers assess it. Buyers need to know which activities continue, who controls them and what agreements support shared access or services. The sale presentation should reflect those confirmed arrangements rather than suggesting the purchaser controls an entire farm when the transaction includes a narrower operating interest.

Discuss Your Margaret River or South West Farm-Stay Sale

Speak with Norton’s Resort Brokers about presenting your farm-stay accommodation, operating arrangements and transaction inclusions clearly to prospective purchasers.

Steven Norton: 0488 496 277
Lawrence Norton: 0415 279 807
Email: nortons.re@gmail.com
Website: nortonsrealestate.com

Disclaimer: General information only, current at 25 October 2026. This article is not agricultural, veterinary, biosecurity, planning, legal or financial advice. Farm-stay structures and obligations are property-specific. Obtain independent professional advice.