Shared ownership

I mentioned renting or chartering above, but if you already own the boat and just want to cut your expenses, there are companies where you put your boat in charter service and they handle all the details like finding customers, insurance and maintenance. You still get to use your boat when you want to. It might be worth looking into.

I dont see much of an issue.. nothing i couldnt live with and to me it is much different than having and sharing my wife.

1) One partner is using the boat and there's a major mechanical failure (blown engine or such). Who pays for repairs?
The joint ownership pays the cost for major repair and such as you describe. If one partner runs the prop on a rock, the insurance pays and he pays the deductible.

2) Who decides what maintenance or upgrades should be done and what if one partner doesn't think something is necessary and refuses to contribute to the cost?
Best to agree to X amount per month is put into an account for upgrades or maintenance. some even use a company to maintain the boat so there is no fuzz.

3) What if two partners want to use the boat at the same time?
Well, lets just say you agree one partner has the boat on the odd number week (week no 1 is the first week of January), the other has the even numbered weeks. then you can make trades if you want a longer trip.

4) What if one partner wants out (or dies) and the remaining partners can't afford to buy him out? Just like owning a boat it is his responsibility to sell his share.. if he dies his share is passed into his estate.

WesK said:

I mentioned renting or chartering above, but if you already own the boat and just want to cut your expenses, there are companies where you put your boat in charter service and they handle all the details like finding customers, insurance and maintenance. You still get to use your boat when you want to. It might be worth looking into.

Click to expand...

Wes - Tell me more bout Charter Service companies that handle all details like finding customers as well as covering ins/maintenance!

Following is my input, regarding self accomplished rental wile another company's ins covers my Boat Rental:

I'm in contact w/ owner of a company that "helps" rent and “does” completely insure rented boats for which his company holds agreement. In that... once I sign agreement this company will include a boat of mine on their site and direct inquiries they get for my boat to me. It’s then my responsibility to close the deal with a renter at my pre agreed (with the company) rental price and our rental %age split. Renter fills all tanks at close of rental, or pays through the nose off the security deposit for me to fill tanks! When I rent the boat through that company it has a BIG umbrella ins policy that covers all my needs. Renter of my boat pays that company for rent and establishes a carded security deposit. At end of rental the company deducts its %age off my rent and sends me a check for remainder. I also am able to locate persons to rent myself (via promotions) and the same items apply with the company. Therefore it is a good way for me to have full coverage at arm’s length with the renters and yet receive income from my fully insured boat.

I would not rent our Tolly in this fashion... cause... my wife loves it (so do I – lol) and I know that general renters can be similar to motel patrons... things get dirty/messed up. But, that is what the renter’s security deposit of a couple grand is applied to if required. Any large damage and the rental company’s ins takes care of that with deductable taken out of renter’s security.

All and all it sounds like a pretty good deal. I would be responsible of caring for the boat between rentals and do (or hire others to do) general maintenance/repairs.

Penciled out (used, reasonably priced yet good condition, twin screw, 30’ to 36’ IB boat with features and accommodations):

1. $300 day for rent calced at 1 day rent per wk avg = 52 X $300 = $15,600 Gross
2. $450 mo for slip = 12 X $450 = 5,400
$10,200 remaining
3. $150 mo W&T / stuff (zinc, bottom paint... etc) = 12 X $150 = 1,800
$ 8,400 remaining
4. $150 mo incidentals X 12 = 1,800

Annual income before taxes $ 6,800

Not too awfully bad if you can keep #1 at rental ratios stated. But, if $300 becomes $200 in order to rent it out... or if... 1 day per week becomes 1 day per two weeks... or longer; well then, it becomes an effort filled no income “push”. Any worse than that and you loose money. On the other hand; if you can keep her rented 1.5 to 2 times per week at $300 per day there is a bit of income potential. Three or more boats doing good numbers and it could become a biz where you had a dock hand taking care of your boats’ needs.

Anyway, a year ago I nearly tried this opportunity with a 33’ twin screw FB cabin cruiser I felt would be perfect for rental purposes. However, the deal regarding the boat fell through. It did not meet my standards... I walked! Glad I did – needs for my time became apparent elsewhere.

I’ve got another Pleasure Cruiser I’m currently mulling over for same reason; seems to be a good ol’ baby. I’ll let cha all know if I were to follow through; don’t hold ya breath though!! lol

Happy Boating Daze! - Art