How Much Money Could I Make Renting My Boat? In this article we have included financial tables and our MatesBoat™ calculator to help determine your earnings.
Table of Contents
- What type of boat should I rent out?
- Why is the Length of your boat a factor in determining your Boats Rental income?
- Why is the engine capacity of your boat important to determine your Boats
Rental income? - How Many People can “Legally” be taken on Boat Rental?
- Proposed Boat Purchase Price and Annual Costs
- Potential Boat Rental Tax Scenario
- Calculator
Lets first look at what boating services you could provide;
- Bare Boat Rental
- Fishing Charter Service
- Sight Seeing and Cruising
- Water Skiing & Tow Sports
- Sunset Romantic Cruises
- Sailing Cruises
- Introduction To Sailing Days
- Photography Cruises
- Scuba Diving
See our Article “10 ways to make money with your boat”
What type of boat should I rent out?
The type of boat you have will be one of the determining factors in how much money you could make renting your boat
- Tinnies (Aluminum Boats): Small, lightweight aluminum boats, popular for fishing in rivers and estuaries.
- Runabouts: Versatile boats suitable for fishing, watersports, and family outings.
- Cruisers: Larger boats designed for extended trips with amenities such as cabins and kitchens.
- Pontoons: Stable, flat-bottomed boats with a large deck area, great for relaxing and entertaining.
- Fishing Boats: Specifically designed for fishing, with features like casting decks and fishing accessories.
- Sailboats: Sail-powered boats ranging from small dinghies to larger sailboats for cruising.
- Yachts: Larger, more luxurious sailboats often used for cruising or racing.
- Kayaks and Canoes: Small, paddle-powered vessels suitable for various water conditions.
- Wakeboard and Ski Boats: Designed for watersports enthusiasts, equipped with features for wakeboarding and water skiing.
- BowRider: The font of the boat is an open area which typically includes seating arrangements for passengers. They are known for there comfort and versatility making them well-suited for a range of on-water activities.
- Fishing Boat: Specifically designed and equipped for the purpose of catching fish. They vary in size, design and capabilities depending on the type of fish and location the owner is targeting.
Why is the Length of your boat a factor in determining your Boats Rental income?
The overall length of your boat is an important factor in determining how much you charge for your boat rental for the following reasons:
- Capacity: Larger boats typically have more space to allow them to accommodate more passengers. More passengers generally will return a higher boat rental return.
- Operating Costs: The larger the boat the higher the operating costs. You need to take into account fuel, maintenance, insurance, storage, finance costs etc.
- Features and Amenities: Larger boats may come equipped with more amenities and features, such as cabins, bathrooms, kitchens, and entertainment systems. These added luxuries can increase the perceived value of the boat and justify a higher rental price.
- Versatility: Larger boats may offer more versatility in terms of the activities they can support, such as fishing, cruising, water sports, or overnight trips. The rental price may reflect the versatility and flexibility of use that larger boats provide.
- Depreciation: Larger boats often have higher initial purchase prices and may depreciate at a slower rate compared to smaller boats. Rental prices may need to account for the higher capital investment and longer-term value retention associated with larger vessels.
Why is the engine capacity of your boat important to determine your Boats Rental income?
- Performance: The engine capacity directly affects the performance of the boat, including its speed, acceleration, and overall power. Boats with larger engines often provide better performance, which can be appealing to renters seeking a thrilling experience, such as water sports enthusiasts or those looking for faster cruising speeds.
- Fuel Efficiency: While larger engines may offer better performance, they can also consume more fuel. Rental prices may reflect the higher operating costs associated with larger engines, including fuel expenses. Renters may be charged more for boats with larger engines to cover the additional fuel costs incurred during their rental period. You can also consider charging Fuel as a separate extra item.
- Versatility: Boats with larger engines may be more versatile and suitable for a wider range of activities, such as water skiing, wakeboarding, or towing “Biscuits”.
- Maintenance Costs: Larger engines often require more maintenance and upkeep compared to smaller engines. Rental prices need to account for the higher maintenance costs associated with larger engines, ensuring that you can cover the expenses of regular servicing, repairs, and parts replacement.
- Perceived Value: Boats with larger engines may be perceived as more prestigious or luxurious, attracting renters who are willing to pay a premium for enhanced performance and features.
Overall, the engine capacity of a boat plays a significant role in determining its rental price by influencing performance, operating costs, versatility, maintenance requirements, and perceived value. You should carefully consider these factors to establish competitive pricing that reflects the value proposition offered to customers while covering expenses and generating a profit.
How Many People can “Legally” be taken on Boat Rental?
The number of people legally allowed to be taken on your vessel is one of the most important factors in determining your Boats Rental income. Why? Because the more people that can potentially chip in for the cost of the boat hire then the more attractive it is to the boat renter.
The Ex02 – Non-Survey vessel requirements governed by the Australian Maritime Safety Authority (AMSA) allows for a maximum of 4 passengers in a ‘Hire And Drive’ scenario. In a chartered operation it allows for 4 passengers, a Master and 1 crew. See if you meet the criteria here.
You will also need to check your Australian Builders Plate attached to your boat.
If you have a Full Survey for your boat rental then the numbers will be determined by the Australian Builders Plate and the Certificate of Operation issued by AMSA.
Proposed Boat Purchase Price and Annual Costs(Indicative)
| Boat purchase | $50,000 | $100,000 | $150,000 | $200,000 | $250,000 | $300,000 |
| Depreciation – 5% | $2,500 | $5,000 | $7,500 | $10,000 | $12,500 | $15,000 |
| Interest ~6.98% | $10,688 | $21,375 | $32,063 | $42,750 | $53,438 | $64,125 |
| Insurance | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Certificate of Survey | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| DCV Registration | $500 | $500 | $500 | $500 | $500 | $500 |
| Storage costs | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Maintenance | $1,000 | $1,150 | $1,323 | $1,521 | $1,749 | $2,011 |
| Fuel | $955 | $1,194 | $1,433 | $1,719 | $2,063 | $2,475 |
| Incidentals | $500 | $550 | $605 | $666 | $732 | $805 |
| Equipment | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Master Training NC3 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Costs 1st year | $22,143 | $35,769 | $49,423 | $63,156 | $76,982 | $90,917 |
| % Claimable | 70% | 70% | 70% | 70% | 70% | 70% |
| Claimed Amount | $15,500 | $25,038 | $34,596 | $44,209 | $53,887 | $63,642 |
Potential Boat Rental Tax Scenario
Below is a table showing a potential boat rental tax scenario based on a salary of 100k. Remember this is a guide only, it is not tax advice and you must consult with your accountant. (yes i have to write that)
Salary – $100,000
| Boat Price | $50,000.00 | $100,000.00 | $150,000.00 | $200,000.00 | $250,000.00 | $300,000.00 |
| Salary | $100,000.00 | $100,000.00 | $100,000.00 | $100,000.00 | $100,000.00 | $100,000.00 |
| Deductions | $15,500 | $25,038 | $34,596 | $44,209 | $53,887 | $63,642 |
| Tax paid | 22,967.00 | 22,967.00 | 22,967.00 | 22,967.00 | 22,967.00 | 22,967.00 |
| Tax should have paid | 17,929.58 | 14,829.59 | 11,723.34 | 8,599.10 | 5,453.68 | 2,283.32 |
| Refund | $5,037.42 | $8,137.41 | $11,243.66 | $14,367.90 | $17,513.32 | $20,683.68 |
| Estimated Income | $10,400.00 | $13,000.00 | $16,250.00 | $20,312.50 | $25,390.63 | $31,738.28 |
| Total Return | $15,437.42 | $21,137.41 | $27,493.66 | $34,680.40 | $42,903.94 | $52,421.96 |
| Percentage Return | 23.57% | 16.90% | 14.89% | 14.20% | 14.12% | 14.42% |
Assumptions:- Rental Income included in Total Salary; Interest Rate based on Credit One Calculator currently 6.98% with a 10% deposit; Rental Income is an “Estimate” …guide only; Must get your accountant to provide their independent advice; Tax calculated on 70% Commercial and 30% private usage; Tax Rates ATO Residents Tax Rate 2020-24; Depreciation based on ATO’s Boat Depreciation Rates
Calculator:-
MatesBoat™ has built a calculator to assist you with getting an idea of your daily rental rate you could earn by renting your boat. You can check it out at MatesBoat™ Calculator.
