Letting a friend use my boat for charter -- good idea?

[Bene505]

A friend of mine had his Catalina 38 hit by lightening 9 days ago. He was using the boat to run charters and he was making money.

We've been discussing his using my boat until the end of the season. He offered a 50/50 deal, using his website, advertising, etc.

I'm confident in his sailing ability and would like to help him out. And making a few bucks would be good. Yes, I would have to change our insurance. What are the drawbacks to doing this? What do you think?

Regards,
Brad

[primerate84]

Get a contract drafted that addresses all the possible problems (such as damage to the boat, mechanical failures, etc.) that could occur and who has the liability, etc. I would hire a good lawyer to do the document and make sure you're protected. The quickest way to lose a friend will be a disagreement concerning the business arrangement you are about to enter into.

[Tempest]

Is it bareboat?? or captained? charters..

Either way..I think you have to face:

Wear and tear on your boat all systems.
Broken stuff
Higher insurance costs
Wear and tear on your engine...

It's my belief that the cost/benefit ratio is not going to be a good one...Unless you're getting top dollar for the boat rental. I've turned down this kind of offer many times...no one will care for your boat as much as you do.

[Bene505]

I need to clarify...

He does sunset cruises, charging $59 per person. Also does 2 hour sails mornings and afternoons too.

While $59 may be good for a ride on a old 38 footer that is very beat-up, our boat is a nearly pristine 50 footer.

(For reference, BillyRuffn is pristine. Scott has that boat shining and sparkling.)

Regards,
Brad

[jackdale]

Check with your insurance company.

[Tempest]

Well, that's somewhat...better than people living aboard for days at a time..

So, what is the traffic like? he can only take 6 people out at a time..
I'm assuming that you don't have an inspected vessel.

Best case scenario..18 passengers per day? you get $500.00 day.. less if he doesn't fill the boat.... is he covering the bump to your insurance, or is that out of your cut ?

The fact that you're considering it I'll assume he's a good friend and you trust his skills...
it could help defray some of your annual costs....

If you declare the income though.....Uncle Sam will want his cut....How's he going to expense the rental?..... Rhetorical...I don't need to know....just things I bump into..when considering this stuff..

[Undadar]

I've seen "partnerships" work a couple of times and I've seen them not work many dozens of times. Either the money would have to be very good or I would have to be in a situation where I was not using my boat and it was do this or sell it.

I concur with the advice to document every possible scenario and how it will be handled else it will not end well (for you).

JdFinley.com | Sailing, development, and life with JD
You can observe a lot just by watching.

[smackdaddy]

I'd say if you're cool with a certain level of problems, damage, neglect, and head-shaker behavior - it may not be a bad way to make back some coin on your boat.

Just get a good agreement on paper so you don't have to deal with too much of the above. You'll be surprised how far people can push all of the above.

[sailingfool]

As Jackdale says above, check with your insurance company. I suspect the idea will die with the one phone call. Most insurers will not cover a charter of a vessel, let alone a charter to a day-sailing business.

[imagine2frolic]

I wouldn't, but if you decide to. Let him pay the insurance deal. He is already paying his own, and he can transfer it........i2f