Potential Boat Rental Earnings Calculator:-
MatesBoat™ commitment to the Australian boating community led us to create Australia’s first boat rental calculator.
When you are assessing your potential return of investment of renting out your boat you need to know some figures.
It is easy enough to work out your costs of boat ownership. If you need some insight into doing this then check out this article “How Much Money Could I Make Renting My Boat”
This article provides an insight into the costs associated with owning a boat and looks at the potential return from renting it.
When I first started building the MatesBoat™ marketplace I found it extremely difficult to get an estimate of the amount of money you could receive for your boat rental.
After doing hours of research and finding it quite difficult to get an accurate amount for the Australian Market I built Australia’s first Potential Rental Boat Earnings Calculator.
I took the months of research I had undertaken and turned it into an easy to use online boat rental calculator.
The boat rental calculator is easy to use and will give you an estimate of the potential earnings for your boat.
Please remember though that this is a work in progress and I am continually updating it to provide the most accurate information possible.
Factors to Consider When Estimating Your Boat Rental Return:-
There are some other factors you should take into consideration such as the time of year (i.e Peak & Off Peak),, weekdays as opposed to weekends, long weekends, school holidays and discounts for multiple day or weekly boat rentals.
If you are serious about bringing in some cash for the use of your boat then you need to plan for it.
You need to assess the costs of boat ownership against the potential earnings and tax savings.
Tax Advantages When You Rent Out Your Boat:-
When you rent your boat, the Australian Tax Office (ATO) sees this as a commercial venture and you can offset any losses against your personal income tax. You can check out the specific details from the ATO here.
It is the same when you purchase a house and rent it out as short term accommodation using marketplaces such as Stayz and AirBnb.
I have purchased a house and it is on AirBnb and Stayz. The massive outlay of capital to do this is restrictive, but having the ability to rent it out as short term accommodation and claim a percentage of the losses on our personal income taxes makes it more achievable.
Purchasing a boat and renting it out on Matesboat™ is the same principle.
Calculate the total costs of the purchase of your boat, ongoing costs and then estimate your potential rental return. Any losses endured are offset against your personal income tax.
(Disclaimer:-) I am not an accountant and you need to seek your own independent tax advice)
Average Boat Rental Daily Return:-
You can use the MatesBoat™ Potential Earnings Calculator to estimate the approximate daily rental return for various vessels.
It would seem from experience that the best boats for rental sit around the $400-$600 per day range.
Why? Well I believe it is because part of the Ex02 – Non Survey Vessel requirements is you are restricted to having 4 passengers.
This is an Australian Maritime Safety Authority registration requirement. This means that if you have a group of 4 people it will cost around $100-$150 each for the day of fishing or sightseeing etc.
This amount appears to be what people are willing to pay for boat hire in Australia. So keep this in mind when you are thinking about purchasing a boat for the purpose of renting it out.
A Growing Boat Rental Community:-
Boat rentals through boating marketplaces are growing quickly in Australia. Its like Uber and AirBnb had a baby. You only need to look at GetMyBoat and BoatSetter which are US based Boat Rental marketplaces. GetMyBoat claims to have 150,000 boats available for hire around the world!
Australia might be slow on the uptake, but we are moving fast to create a boating marketplace that will make boating accessible to everyone.
Boating should be for everyone and the majority of people simply don’t have the financial ability, storage space and mechanical aptitude to own a boat.
Along with the cost of living that is affecting the entire world, boat ownership is becoming more and more difficult.
The MindSet Change for Boat Rental:-
We need to change the mindset of boat ownership, as I did with owning a short term rental accommodation.
When we first purchased our “dream” holiday home and started renting it out, we were over precious with it. Like boating it is a big investment and you don’t want it ruined.
From experience, once I changed mine and my wife’s attitude towards our investment and it made the experience 100 times better.
We have had our investment for 5 years and we have paid off a considerable amount of it, faster than we had estimated.
We are able to claim a percentage of the losses incurred on our personal income and we get to enjoy the house when it suits us.
Think of your boat as a commercial venture and don’t get caught up on worrying about minor damage or extra maintenance. It’s a cost of doing business.
Do your calculations, allow for additional costs and start small until you get your “dream” boat. After a couple of years, once you pay off your boat you can slowly upgrade until you can pay for it with cash!
Boat Rental Synopsis:-
A Quick synopsis of a boat rental example using MatesBoat™ Potential Boat Rental Calculator:-
Basic Costs (estimates only):-
Purchase Price:- $45,000
Interest:- $198.31 per week @ 5.49% over 5 years (see Credit One)
Insurance:- $1250 per year (commercial insurance req) (See R&M Insurance)
DCV Registration:- $500
Maintenance:- $1,000
Incidentals:- $500
Fuel:- $800
Total:- $14,362.12
(Disclaimer:-) I haven’t taken into account all personal circumstances i.e storage or depreciation etc. Seek independent advice)
Rental Earnings:-
Fishing Boat
5-7 metres
100 – 150 HP engine
Estimates Daily Rental:- $590.00 per day rented
On average we are seeing our boats being rented 10-15 times per year. (N.B we are just starting to get the word out.. Help spread it!!)
Income:- 15 x 590 = $8,850
Difference:- 14,362.12 – $8,850 = $5,512.12
The difference is a loss of $5,512.12 which can be added to offset your personal income tax. The amount you can claim will vary depending on the percentage you claim for personal use and your individual income tax rate.
At a tax rate of 30% and claiming 80% commercial use you could claim approximately $1,322.90 from the ATO.
Cost of your boat ownership is around $4,189.21 per year or $80 per week!
Disclaimer Again:- I am not an accountant! You will need to seek individual tax advice from a registered professional. The above figures are approximates only. Each individual will have different circumstances.
Boat Rental Case Study:-
Boat Rental Case Study:-Check out one of our case studies here. Duane has been renting his boat for a couple of years and has completely paid it off. You can see his story here.
Take Action:-
“Men Of Action Are Favoured By the Goddess Of Good Luck” The Richest Man in Babylon by George S. Clason.
Help make boating accessible to everyone! Check to see if your boat is eligible for commercial registration here.
Register your boat with AMSA and get on our marketplace now to start earning cash towards your dream boat!
