Owning a boat can be a joyful experience. You make incredible memories on the water, and it’s an exhilarating pastime that keeps giving. But those good feelings often melt away once you see your monthly boat fees add up. From slip fees to insurance and maintenance, there’s always something to pay for. A potential solution? Start your own boat rental business.
Renting your boat when you’re not using it is a great way to pay for boat expenses and make extra income on the side. Operating a boat rental business requires some upfront work, but it can be smooth sailing once you’re all set up.
Is a Boat Rental Business Profitable?
Depending on your boat, location, and local market, a boat rental business could be profitable. Here are some rental price examples from coast to coast:
- A 44′ luxury yacht in Miami goes for $270+/hour.
- A wakeboarding boat in Austin goes for $200+/hour.
- A 23′ pontoon party boat in Lake Tahoe goes for $244+/hour.
From small to big boats, powerboats to party boats – your watercraft, whatever it may be, will have renters paying good money to take it out. Here are 4 tips for starting a boat rental business:
1. List on a peer-to-peer boat rental platform
Think Airbnb for boating. Peer-to-peer (P2P) boat rental websites allow owners to rent their boats legally and without hassle. Take some pretty pictures, set your rental price and deposit, select the policies that work best for you, and post your boat rental business to your local market. The P2P sites handle the rest.
On these platforms, you can list your boat’s various amenities and any other information or special considerations you want renters to know about.
Boatsetter is the largest boat rental platform in the United States, and Click & Boat is another great option, especially for renting out a yacht.
If you’re nervous about renting your boat to strangers and prefer they don’t drive, Boatsetter will connect you with captains in your area. This is a great way to maintain your rules without being there in person and can even be an appealing feature of your boat rental business since many renters would rather ride than drive.
Depending on your boat size, you may automatically be required to hire a captain and a crew. It is also important to note that you can captain your own boat, but only if you have a US Coast Guard captain license and meet their qualifications. As the boat captain and owner, you can take up to six passengers on the water, regardless of license type.
Pro Tip: It’s not allowed to list and rent out your boat privately. This requires a business license and special insurance that is only available for certified rental companies. You must lease your boat with a local charter or rent it on a P2P boat rental platform.
2. Understand the insurance and liability side
Insurance and liability are important considerations for any peer-to-peer rental. P2P boat rental platforms offer liability insurance if damage or injury occurs while your boat is with renters.
For example, each Boatsetter rental is covered up to $300,000/person for significant liability and $300,00/accident for total liability. That might sound like plenty of coverage and is a great baseline, but boat accident costs can quickly add up. That’s why it’s recommended to get additional protection to be on the safe side.
That being said, most standard boat insurance policies will not cover damage or injury sustained during a rental, so you will likely need to upgrade your policy. You want to ensure your insurance (whether private, through a P2P platform, or a combination of both) covers damage to the boat, damage to other people’s property, and personal injury to the renter or other party.
If you want to break into the boat rental business, we recommend calling your boat insurance provider and discussing the details to ensure you have sufficient coverage.
While this may sound like a deterrent to renting your boat and making some extra income, it’s not! People rent out their boats all the time, all over the country. It’s just a matter of setting things up with your preferred P2P platform and communicating with your insurance provider.
Once you have it all set up, you can enjoy the fruits of your boat rental business, knowing your boat and rentals are covered.
3. Meet safety requirements and inspections
You know your boat, and you trust it, but before renting it out, it is a good idea to conduct a safety inspection and ensure it’s in top working condition. This guarantees your boat is in the best shape for rentals and gives your renters peace of mind.
Boatsetter recommends performing safety checks as often as every 30 days. If your boat is getting almost daily use, then you want to ensure everything is good under the hood and around the hull.
When renting out your boat, you also need to stock it with the proper safety equipment, including but not limited to life jackets, fire extinguishers, anchors, GPS, extra dock lines, air horns, and a pre-departure checklist.
Equipping your boat with the right safety gear and conducting regular checks will ensure good reviews from satisfied renters after they’ve had a fun, safe experience.
4. Get to know your renters
Another perk of listing your boat on P2P boat rental platforms is the ease of handling renters.
Like any peer-to-peer transaction, there are reviews on both sides, so each party knows what they’re getting into. Boat renters can leave reviews on your boat – so you can’t get away with falsely advertising a sinking hull. On the flip side, the boat owner can leave a review of boat renters – so they can’t get away with trashing a boat. This protects both sides in an online marketplace built on trust.
In addition, P2P sites like Boatsetter automatically have renters fill out a questionnaire and an affidavit, meet age requirements, show a valid driver’s license, and have a certain number of boating experience years (usually two).
Specific safety requirements such as age, boat licenses, boating experience, and other essential checklist items may vary by state, so read up on your local boating rules and regulations.
P2P platforms typically have the renter pay a deposit if there is slight damage, missing equipment, or they fail to fill up the tank upon return.
As the boat owner, you can talk with the renter via phone, text/email, or face-to-face. P2P platforms also allow you to decline a rental request at your discretion, giving you full control over the rental process.
Breaking into the boat rental business doesn’t have to be complicated. It just takes a little upfront work to get set up. The good news is that popular P2P boat rental platforms have streamlined many important processes for you to make it even easier.
Whether you’re looking to cover your boat’s expenses, make a little extra income, enjoy a little side hustle, or all of the above, renting out your boat is an excellent opportunity to make money and for your renters to enjoy a day on the water.
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