There are more than 70 million Americans enjoying boating, and approximately 17 million registered recreational vessels in the United States; however, on average, a boat is only used 14 days per year!
What if you could have the watercraft of your dreams, pay for only ½ or ¼ of it, and still use it the same amount of time as if you owned 100% of it?
The primary reasons we have seen for boat owner dissatisfaction is the amount of expense that can add up combined with their infrequency of use. Having your own boat can be a significant expense with storage fees, maintenance fees, insurance, and ramp or marina fees – not to mention the boat mortgage!
Fractional boat ownership reduces these costs. There are several ways to experience fractional boating, below we will to take you through two types and describe the advantages and dis-advantages to each.
Shared Ownership – This is the method preferred by Nautical Monkey and is where you own and manage your own boat with a group of friends/partners. The boat is shared proportionately between the partners.
Boat Club/Time Share/Pay for Use – You turn your boat over to a company to manage your boat for you or you join a club that rents their boats to you.
Let’s take a look at these systems.
Advantages of Shared Ownership
- You and the other owners of your boat have a vested interest to take care of the boat and protect your investment. (Ever heard the expression, “Don’t worry, it’s a rental“?)
- Your payment is invested in the boat not the Boat Club. Meaning, you have an equity interest in the boat that continues to build.
- Only you and your partners can use your boat. Boats in programs can be used in some cases by members from out of the area who do not know the local waterways.
- When it comes time to sell, you are able to get a return on your investment minus any depreciation.
Disadvantages of Shared Ownership
Advantages of a Boat Club
- You don’t have to pay up front to buy the boat.
- It’s a shorter term commitment – often you can sign up for a year or less.
Disadvantages of a Boat Club
- Your costs can be as much as a Shared Ownership and you have nothing to sell at the end of the agreement.
- If the Boat Club runs into financial difficulties you could lose any money you have paid.
- You have no control over who uses the boat.
- There is no owner pride so there is less incentive to care for the boat.
There are lots of different ways to get into fractional boating but one of the key ingredients that you need, to make sure your partnership lasts, is a system that helps resolve conflict. The simple question, “Is anyone planning on using the boat on July 4th?” can easily turn into a major problem for partners.
Enter the need for Nautical Monkey, which provides a comprehensive set of tools that help partners resolve issues around scheduling, expenses, agreements and maintenance.