Yes, that is a bat house. For those of you that don't garden and know the benefits, bat guano is a highly rich organic fertilizer. Now back to these hand make red ceder log houses. Yes each piece is cut out by hand and each "shingle" separately glued on. No those are not store bought Lincoln logs they started out as new or reclaimed western red cedar boards.
How the bat house works. Well they will climb up threw the opening in the bottom and stack in on top of each other. Not sure if you have bats in your area, (if you build it they will come) with in about a year they will find and start moving in.
These starter homes begin at $25 and with additions or upgrades the prices will go up.