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What considerations are there for buying a hangar?

T

tdhanson

Well Known Member
I'm looking to buy a hangar. I've seen a few for sale but I want to be educated. The one I'm looking at is a certain purchase price and then a fixed monthly cost for water and electricity. Besides that what should I be concerned with as this differs from my home buying experience.

This is in moderate CA environment so I'm not concerned with insulation for snow or other.

Some initial considerations I can thing of?

Is the purchase price fair? How to get a proper valuation for the size and condition. This is a metal hangar about 40 x 30 with a crank up front door. It has water as well as hot water from water heater as it has 110 and 220 electric. Nothing fancy.

Is the monthly charge appropriate?

Is there a lease consideration or timeframe of when the airport might not renew the land lease?

How's the rental market if I wish to rent the hangar out vs. keep it for my own use?

How's the resale market if I wish to unload it later?

Do they allow or restrict certain activities or storage of non aviation stuff? Doesn't appear so. Others are building experimentals onsite and I saw storage of cars and such there on my visit.

Help me go into this eyes open guys...
 
Do you mean that you are thinking of purchasing a condo hangar, an existing hangar, or constructing one?
 
I'll clarify. This is a hangar only. Sheetmetal / metal construction. Looks fairly old. There is no living quarters nor would I expect there to be. I'm just trying to be educated on the questions/details I should be aware of for a hangar purchase. Thanks.
 
One of the first things to understand is what the deal is with the land under the hangar. Most of them are a lease from the airport, and more than one is about to expire. Also check on covenants on the hangar, imposed by whoever owns the airport.

Then I'd worry about resale value in a market where there is declining demand (we're losing pilots faster than we are making them). Certain others will flame me, so I already have the popcorn ready...

Finally, compare the cost to renting. Personally I use a Net Present Value analysis to decide -- and last time I did an evaluation I was well ahead by renting. But then again if everything was a NPV analysis, then none of us would own an airplane.
 
Insurance

Make sure you get insurance and check to see if it covers other hanger lose due to something that happens in yours. Also get content insurance as your home owner policy does not cover contents of your hanger.
 
It is all about the airport

Mike covered most of the concerns. Many airports will lease the land for a period of time, 20 years typically, after which the structure reverts to the airport. Know all the rules and do the math before you jump. I have rented a hangar for 20+ years and am slightly ahead. By being a tenant, I have not had to worry about maintenance on the structure. But, as I said, it is all about the deal on the land.

John Clark
RV8 N18U "Sunshine"
KSBA
 
also check covenants regarding the use. in addition to the aforementioned clauses you could find:
some prohibit any maintaince, including changing the oil.
some prohibit any airplane building.
some prohibit storing anything besides a licensed airplane.
some (most i believe) prohibit storing fuel.
some prohibit subleasing a portion of the hangar.
​
 
Not sure where you are located..but if you are looking to buy at Gillespie..send me a PM. There's a sleazeball (well known to the locals) there who owns a few hangars and tried selling me one until I dug into his past dealings and discovered some of the skeletons ...

Suresh
 
tdhanson said:
I'm looking to buy a hangar. I've seen a few for sale but I want to be educated. The one I'm looking at is a certain purchase price and then a fixed monthly cost for water and electricity. Besides that what should I be concerned with as this differs from my home buying experience.

This is in moderate CA environment so I'm not concerned with insulation for snow or other.

Some initial considerations I can thing of?

Is the purchase price fair? How to get a proper valuation for the size and condition. This is a metal hangar about 40 x 30 with a crank up front door. It has water as well as hot water from water heater as it has 110 and 220 electric. Nothing fancy.

Is the monthly charge appropriate?

Is there a lease consideration or timeframe of when the airport might not renew the land lease?

How's the rental market if I wish to rent the hangar out vs. keep it for my own use?

How's the resale market if I wish to unload it later?

Do they allow or restrict certain activities or storage of non aviation stuff? Doesn't appear so. Others are building experimentals onsite and I saw storage of cars and such there on my visit.

Help me go into this eyes open guys...
Click to expand...


Don't be so quick to dismiss the benefits of insulation in a hangar. At my local aerodrome (near Sacto), a group of 14 of us built identical hangars. A buddy and I were the only ones to insulate, and it is well worth it for warmth in the winter and cool in the summer. Plus, during hard rain the noise level stays well within limits.
Most importantly, do your due diligence as other have stated. The city and county municipalities can be very difficult to deal with on certain issues.
 
Build it and they might bulldoze

tdhanson said:
Is there a lease consideration or timeframe of when the airport might not renew the land lease...
Click to expand...
This is an timely and relevant question because the consequences of an airport (property) owner NOT renewing the lease is unfolding as we speak at (3SQ) St. Charles Municipal Airport. Located in the St. Louis Mo. area, the airport has been operational since since WWII and is now doomed to imminent closure unless a miracle happens. My first solo was there. My first airplane was based there for 16 years. Airnav reports 77 aircraft are based at 3SQ and the owners have until the end of this coming June to remove their aircraft. Naturally, the other local airports including mine are receiving frantic calls for hangar space, any hangar space. Those tenants who erected structures at 3SQ were given an unspecified time to dismantle and remove their hangars from the land. A few of those hangars are large and well appointed. All remaining structures will be razed and it is said the land will then be rezoned agricultural, although I cannot confirm that. The important thing to note is that the airport is NOT closing because of usual reasons like encroaching development but rather because the elderly owner's family has no interest in the property or aviation for that matter and wants to sell out. A few of the hangar owners have received ad hoc legal advice from an attorney who has a plane based there and the bottom line is that either they remove their buildings by a fast approaching unspecified date or those buildings can and will be legally bulldozed under. This process is still unfolding, I feel for those still based there and I can only say I am glad I relocated when I did. Here's a news release:

http://www.stltoday.com/stltoday/ne...771900108EF0?OpenDocument#tp_newCommentAnchor

Finally, I am very happy where I am now even though the airport owner has refused my pleas on many occasions to "section off a piece" and allow me to build my own hangar with right of access to his property. I continue to rent like everybody else on a month to month basis. This is probably a blessing in disguise because as the property owner, he has the perfect right to sell his airport at anytime that unforseen circumstances or even casual whim compel him to act in his own self-interest and sell. I really don't see that happening anytime soon but life does have a way of throwing curve balls at us from time to time.
 
Rick6a said:
This is an timely and relevant question because the consequences of an airport (property) owner NOT renewing the lease is unfolding as we speak at (3SQ) St. Charles Municipal Airport. Located in the St. Louis Mo. area, the airport has been operational since since WWII and is now doomed to imminent closure unless a miracle happens. My first solo was there. My first airplane was based there for 16 years. Airnav reports 77 aircraft are based at 3SQ and the owners have until the end of this coming June to remove their aircraft. Naturally, the other local airports including mine are receiving frantic calls for hangar space, any hangar space. Those tenants who erected structures at 3SQ were given an unspecified time to dismantle and remove their hangars from the land. A few of those hangars are large and well appointed. All remaining structures will be razed and it is said the land will then be rezoned agricultural, although I cannot confirm that. The important thing to note is that the airport is NOT closing because of usual reasons like encroaching development but rather because the elderly owner's family has no interest in the property or aviation for that matter and wants to sell out. A few of the hangar owners have received ad hoc legal advice from an attorney who has a plane based there and the bottom line is that either they remove their buildings by a fast approaching unspecified date or those buildings can and will be legally bulldozed under. This process is still unfolding, I feel for those still based there and I can only say I am glad I relocated when I did. Here's a news release:

http://www.stltoday.com/stltoday/ne...771900108EF0?OpenDocument#tp_newCommentAnchor

Finally, I am very happy where I am now even though the airport owner has refused my pleas on many occasions to "section off a piece" and allow me to build my own hangar with right of access to his property. I continue to rent like everybody else on a month to month basis. This is probably a blessing in disguise because as the property owner, he has the perfect right to sell his airport at anytime that unforseen circumstances or even casual whim compel him to act in his own self-interest and sell. I really don't see that happening anytime soon but life does have a way of throwing curve balls at us from time to time.
Click to expand...

An option, perhaps in your area, is to buy a lot in an air park and build your hangar there. At least you won't have to deal with leasing the land.

In the St. Louis area the Troy Air Park owners have voted by a 77% margin to upgrade to an asphalt runway which will be installed if it ever stops raining. We need a mini draught sometime this summer to get this project completed.

With regard to lot sales, there are several for sale here by owners who have lost interest. One was sold recently to a couple from Oklahoma who plan to move here after retirement in 2 years.

There are many air parks around the country. Check it out. It is a viable option to renting and/or dealing with the uncertainties of leasing land. And the community life is good, at least it is here. We have great people with much sharing of tools and airplane talk and mowing grass. We do our own mowing on a volunteer basis and it works. We build and fly together, and we do formation mowing together. :)
 
Rick6a said:
This is an timely and relevant question because the consequences of an airport (property) owner NOT renewing the lease is unfolding as we speak at (3SQ) St. Charles Municipal Airport.
Click to expand...

This is not sudden. There has been talk of this for years. Plus the runways are in such bad shape I refuse to land there for the last 3 years for fear of damaging my gear. I am surprised there are still people there as I would have thought most would have moved out by now.
 
more bullet points

If your hangar is connected to the city water supply, you may pay a monthly flat rate regardless how much you use or not use.
Items stored in the hangar such as boats or motorcycles that can be insured by themselves are not covered by your hangar policy.
As mentioned above, some airports have renewable leases for the land and hangars. Other airports will own the building you paid for over the life of the lease.
Some airports don't allow trailerable aircraft to operate on the premises.
Some airports don't allow owners to perform maintenance.
Choose your hangar neighbor carefully.
The rainwater falling on your hangar's roof may belong to your city or county.
The airport manager may determine your place needs some sprucing up by next week.
 
You should contact the Airport Manager and get the Airport rules, sometimes called the minimum standards. This will often clarify what can or cannot be stored within the hangar and if you are allowed to trailer aircraft in/out.

Additionally, when was the hangar built? If it is old and that door begins to sag, you may need to rebuild it which could cost a lot of money. Verify the ground lease is for the hangar too, it may include the ramp right in front of the hangar and you may be responsible for repairing the asphalt, which could be huge money.

Also check into whether there is an electrical meter on your individual building, PG&E right? We have a row of hangars out here that everyone shares one meter and some owners pay a share of electrical into it even if they have not been to the hangar in years. It causes a lot of conflict.
 
I'll give you my .02 worth as it relates to hangars at Butler County airport here in Ohio. I built a row of 10 nested T-hangars and I'm in the process of selling them. We have a 60 year land lease with Butler county, which costs us $7890. per year and will be adjusted every 5 years in concert with the CPI for the midwest. We also pay property tax which is about .30/sq.ft. We have insurance on the building which costs $670. per year right now, and we also share in electric costs which run about 90 dollars per year, per unit. We don't have water or sewer in our building. The roof, exterior end walls, and doors are all insulated. This is done to control condensation, but has a very positive effect on moderating the temperature. This past cold winter in Cincinnati, the temperature never got below 37 degrees inside my hangar - without heat. I can heat up my hangar to 60 with a torpedo heater fairly quickly. I think your most important consideration should be the land lease and the land owner's attitude and future plans for the airport. I don't think I would buy a hangar on leased land if the lease term has less than 20 years remaining without some assurance that the lease will be extended and that there are cost controls on the rate. As far as renting your unit, find out what the vacancy rate is at your airport. My airport has gone from no vacancy with a 20 plane waiting list, to now having vacancies. We haven't had trouble getting renters if we want them, maybe because our hangars are so new. I bought a hangar here about 9 years ago for $22,000. that is now worth $45,000. I don't expect that kind of appreciation on my new hangars, but there will be some because the cost of materials keeps rising.
I hope this helps.
 
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