Advise on occasional rental out with captain.

[puckliny]

I recently purchased a 1985 25.5 Hunter and am looking forward to using it this season. However, I know I won't be on it all the time and am thinking of renting it out occasionally. I also have a local sailor and past sailing instructor who would captain the boat. Has anyone done this? I am looking to see what insurance/liability issues I would have. Should I set up a LCC? Have waivers, buy a rider? Is it not doable? Thanks for any good advise.

[Ram]

I dont want to discorage you buttttttt
Hard times now and in the coming year or two- to make that happen- I have been booked a year in advance until this year- now - almost nothing with the economy the way it is- If you can manage to get someone to rent the boat (Most folks want to rent a newer boat - max 5 years old)
Create a LLC and forget the insurance
this will save you big time and no attonery will sue for a boat thats not worth big bucks-check out my site Sailing-Charters

[puckliny]

Thanks Ram,
I hear you about the economy, I'm not looking to make money, just a few bucks to take the edge off. I have no idea if I'll get any takers at all. I'm surprised by your statement that no attorney will sue a little boat. That's great, you think the LLC is enough protection?

[Ram]

In my business (Real Estate) I was sued 3 times in 5 years and I never carried liability insurance and all the homes that the opposing attorney was going after were in an LLC - When I bought these homes i made up a "second Mortgage that made the houses have more debt that they were worth on each house - If the LLC was to be sued and the other party won they would have to pay off the second mortage before they could take the house-(this second Mortage $ would be mine- kinda like a sale)as soon as this was found this out by the attorneys they dropped the cases- The cases were BS- one was a slip & fall the other a kid jumped over a 6 ft fence and broke his ankle- and the other was a contract dispute- so protect yourself the same way
Having insurance encourage people to sue you- most folks dont realize this.

This will work the same way by putting a lien on the boat by you and the boat is in an LLC- an LLC can be had online for around $400
if you want to know more in detail PM me

I own nothing but I the manager of a few LLC- this protects my ass-etts

[nautical62]

I do this through the services of a professional charter company.

If you wish to do it on your own, one of the first steps I'd recommend is talking to your insurance company about the liability and insurance implications and costs associated with such a venture.

Also does your friend the sailing instructor have his Captain's license? (Assuming you are in U.S. waters and in waters where it's necessary.)

I recently purchased another boat I let a friend use, and that reminds me of the the importance of talking though and putting in writing the financial implications of boat sharing. Who's financially responsible if your friend the captain, hits a reef or runs the engine without oil?

I'll add that I agree with Ram, that when people know there is insurance money to be had, the lawyers come out of nowhere. However, I've also seen people who are uninsured or underinsured have their lives ruined from being sued. Sometimes a pissed off wife of a dead client doesn't care about the money or any risks her husband may have knowingly assumed. She just wants to see someone pay.