Waterfront Property & Boat Use for Guests
Real Estate Agent · Charlotte, NC · Member since 2022 · 28 posts · 13 votes
Waterfront Property & Boat Use for Guests
Most Popular Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesPeople ask me all the time if I will rent my boat or jet skiis and I always say NO.
The only safe way I can see to do it would be to go through one of the many P2P boat rental sites and rent through them as they provide rental coverage when someone rents the boat through their site.
A friend is looking to buy a pontoon just for this purpose. I'm waiting to see how this plays out for them. It could definitely be a huge money maker as boats can rent for $500/day in the summer.
Someone would have to check the boat at the end of the rental and make sure it is clean and full of gas. Will your cleaner do this? Will you have to do it or do you hire another person for this? Maybe hire a neighbor to manage the checkin and checkout of boat?
Minimum day rental? Do you require they rent it or 3 or 4 days a week?
When they rent it for 3 days and your house for 7, someone has to go get the keys and check the boat while they are there. It does present some logistical challenges especially for someone already remotely managing the house.
15 Replies
- 3yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
People ask me all the time if I will rent my boat or jet skiis and I always say NO.
The only safe way I can see to do it would be to go through one of the many P2P boat rental sites and rent through them as they provide rental coverage when someone rents the boat through their site.
A friend is looking to buy a pontoon just for this purpose. I'm waiting to see how this plays out for them. It could definitely be a huge money maker as boats can rent for $500/day in the summer.
Someone would have to check the boat at the end of the rental and make sure it is clean and full of gas. Will your cleaner do this? Will you have to do it or do you hire another person for this? Maybe hire a neighbor to manage the checkin and checkout of boat?
Minimum day rental? Do you require they rent it or 3 or 4 days a week?
When they rent it for 3 days and your house for 7, someone has to go get the keys and check the boat while they are there. It does present some logistical challenges especially for someone already remotely managing the house.
- Investor · Member since 2022 · 1k+ posts · 754 votes3y
I am not in a spot where we own a boat or jet ski, but this would be a no for me.
People are so negligent. Some of them can’t figure out how to turn the tv on, I wouldn’t want them driving my boat.
- 3yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Hey @Phil Barry, this topic has come up a couple of times in the last few weeks.
The general consensus is NOPE. The liability for boating is very high. The chance for serious injury or death is very high, especially with people who have never operated a boat. Add in alcohol and done tom turkey.
Maybe make a deal with a local rental company to send guests their way.
- Real Estate Agent · Virginia Beach, VA · Member since 2022 · 11 posts · 5 votes3y
Is your rental located on the river? Or is it on a lake? Here in Virginia Beach I have a ton of clients that owned boat slips and rent out the boat slip for astronomical rates during the summer times some of my clients are making $2500 Per day during the summer for 50ft yacht slips
Honestly I would never rent a boat out that I owned too many crazies but I definitely would rent your slip
- Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes3y
@Phil Barry
So many things can go wrong with owning a power boat (both in operator error and mechanically). Renters who are non-boat-owners will have no clue what goes into maintaining and treating it right.
- Real Estate Agent · Charlotte, NC · Member since 2022 · 28 posts · 13 votes3y
Quote from @John Underwood:
People ask me all the time if I will rent my boat or jet skiis and I always say NO.
The only safe way I can see to do it would be to go through one of the many P2P boat rental sites and rent through them as they provide rental coverage when someone rents the boat through their site.
A friend is looking to buy a pontoon just for this purpose. I'm waiting to see how this plays out for them. It could definitely be a huge money maker as boats can rent for $500/day in the summer.
Someone would have to check the boat at the end of the rental and make sure it is clean and full of gas. Will your cleaner do this? Will you have to do it or do you hire another person for this? Maybe hire a neighbor to manage the checkin and checkout of boat?
Minimum day rental? Do you require they rent it or 3 or 4 days a week?
When they rent it for 3 days and your house for 7, someone has to go get the keys and check the boat while they are there. It does present some logistical challenges especially for someone already remotely managing the house.
A friend of mine is doing this now. She charges $500/day and has the boat key in a lockbox. Prior to arrival, they request & pay for which days. She also only keeps the gas tank about 10% full so the guests aren't able to burn up $500 worth of gas they didn't purchase.
She understands the risk of someone taking the boat out on days unpaid for, but again, guests place their reservation for the boat before they understand the logistics of it are understood by them. I would personally add a GPS tracker to the boat myself.
There are obvious concerns in regards to upkeep and maintenance. Personally, a pontoon would be the only boat I'd consider along with lots of waivers and only if I was able to obtain the proper insurance. She charges $500 per day for boat rentals. Another benefit she has had is that when the property has issues, she offers a free day of boat use instead of a partial refund or free extra day on the property.
There are definitely lots of pros and lots of cons to consider. My specific question is in regards to insurance, if anyone else is doing this and had appropriate charter coverage.
- Real Estate Agent · Charlotte, NC · Member since 2022 · 28 posts · 13 votes3y
Quote from @Mason Hickman:
@Phil Barry
So many things can go wrong with owning a power boat (both in operator error and mechanically). Renters who are non-boat-owners will have no clue what goes into maintaining and treating it right.
I don't disagree. But boat rental marinas exist because it is legitimate business model. The fact that waterfront property & customers are already present, and there is little to no additional labor... can the income out pace the costs? I don't know.
- 3yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
I did a quick Google search and these are 2 of the peer to peer places where you can rent your boat. They handle the bookings and provide insurance while the boat is rented.
getmyboat and boatsetter
The correct insurance was the biggest issue in my opinion and these places have solved that.
I think a low powered used pontoon would be the way to try this out. Add to the listing that you onlynrent the boat with the house and you just advertised your house in another place. Plus you don't want someone renting the boat Seperate of the house as they will be coming down to the dock to get the boat potentially while someone else is staying there. The other option is you keep the boat on the trailer and you have to go put it in the water whenever it is rented. The last option is you let them pickup the boat on the trailer from where you store it and they bring it back. Then you are in the boat rental business. Some RV rental P2P sites do this and they provide the insurance while it is on the road too.
Then you buy 10 RV's and 10 boats and you just manage renting those full time. People make money doing this and the cost of entry is much cheaper than buying a house. Maybe start an arbitrage business for boats and RV's?
- 3yJacob SloopBusiness MemberRental Property Investor · Virginia Beach, VA · Member since 2020 · 274 posts · 111 votes
Think about how people drive a rental car...
Maybe as someone mentioned it could be a low powered boat. We have rented houses in the lake gaston area and there are boat rental places on the lake we've used but haven't had a house that included the boat with the house. There is usually a boat that belongs to owners there but not available to guests.
- Real Estate Agent · Charlotte, NC · Member since 2022 · 28 posts · 13 votes3y
Quote from @John Underwood:
I did a quick Google search and these are 2 of the peer to peer places where you can rent your boat. They handle the bookings and provide insurance while the boat is rented.
getmyboat and boatsetter
The correct insurance was the biggest issue in my opinion and these places have solved that.
I think a low powered used pontoon would be the way to try this out. Add to the listing that you onlynrent the boat with the house and you just advertised your house in another place. Plus you don't want someone renting the boat Seperate of the house as they will be coming down to the dock to get the boat potentially while someone else is staying there. The other option is you keep the boat on the trailer and you have to go put it in the water whenever it is rented. The last option is you let them pickup the boat on the trailer from where you store it and they bring it back. Then you are in the boat rental business. Some RV rental P2P sites do this and they provide the insurance while it is on the road too.
Then you buy 10 RV's and 10 boats and you just manage renting those full time. People make money doing this and the cost of entry is much cheaper than buying a house. Maybe start an arbitrage business for boats and RV's?
Thank you John! It can definitely be a profitable industry. I didn't even think of looking for a peer-to-peer market solution. Great info, and I completely agree with your insights.
- Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes3yI think the low powered pontoon would be the way to go. Your comment of “No additional labor” will definitely not be the case. It will require it’s own maintenance and cleaning regimen (either by you or a company).
Quote from @Phil Barry:
Quote from @Mason Hickman:
@Phil Barry
So many things can go wrong with owning a power boat (both in operator error and mechanically). Renters who are non-boat-owners will have no clue what goes into maintaining and treating it right.
I don't disagree. But boat rental marinas exist because it is legitimate business model. The fact that waterfront property & customers are already present, and there is little to no additional labor... can the income out pace the costs? I don't know.
- Real Estate Agent · Charlotte, NC · Member since 2022 · 28 posts · 13 votes3y
You are correct! No need for a marina desk clerk, but definitely some labor involved.
I still say it’s a potential simple bolt on revenue stream for people with lake property. - Investor · Alhambra, CA · Member since 2017 · 53 posts · 28 votes3y
I rented from boatsetter and it was great. I actually ended up renting directly with the boat owner rather than through the site/platform. He and I both saved money that way. It was $600. This included supplies needed and gas. It was a 20+ year old jet boat. Not in mint condition, but nice enough. No issues with the engine. He met me at the dock in the morning, he had all the insurance set up, I signed my life away (haha) and we where off for 8 hours. He then picked up the boat at 5pm. It was great. It was a long holiday weekend. He was booked solid. $2400 in 4 days. Not bad for a depreciating asset. I have considered this myself. Though I would most likely rent through the platform like I do with my RV on Outdoorsy.
- Lafayette, LA · Member since 2017 · 5 posts · 0 votes3y
Quote from @Mark Wurtemberg:
I rented from boatsetter and it was great. I actually ended up renting directly with the boat owner rather than through the site/platform. He and I both saved money that way. It was $600. This included supplies needed and gas. It was a 20+ year old jet boat. Not in mint condition, but nice enough. No issues with the engine. He met me at the dock in the morning, he had all the insurance set up, I signed my life away (haha) and we where off for 8 hours. He then picked up the boat at 5pm. It was great. It was a long holiday weekend. He was booked solid. $2400 in 4 days. Not bad for a depreciating asset. I have considered this myself. Though I would most likely rent through the platform like I do with my RV on Outdoorsy.
100% agree with the p2p sites. I've rented from them many times. Most recently, my wife and I rented a captained center console in orange beach. Although we've boated there many times, we recently purchased a condo and wanted to learn more about the waterway in that area. The owner lives in Tennessee and hired a 21year old captain to take clients out. Pays him $100.00 for a 4 hour trip and the guy takes care of the boat. Captain said he does about 4 per week in the off season and is booked solid during peak season. Owner blocks time when he's in town. Great way to earn money on that depreciating asset!
- Insurance Agent · all 50 states · Member since 2022 · 184 posts · 122 votes3y
Boat rentals are awesome and a great money maker. I have a LLC that I set up with a friend/partner and we rent out 2 wake surf boats with captains. If I was going to rent boats without captains I would definitely be looking into boats that are on the cheaper end something for fishing or tubing, pontoon, or maybe wave runners.
Whatever you do make sure that you have insurance coverage in place that will pay out if you have a claim. Make sure that your insurance agent provides you with not just verbal assurance of coverage. Get everything in writing and maybe even record your calls with your insurance agent. (cover your butt as boating liability can get huge expensive)
I have not looked into policies at this point so I am unsure of what is available from the carriers that I currently have access too. I am sure someone has a good product but it probably isn't cheap.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.