How To Monetize Your Boat (Legally)
Summer's here, and so are your opportunities to “cover costs”.
If you own a boat, I bet your phone's been buzzing. Boatless friends have an itch for the water. Your daughter and her friends just need a day to “relax”. A close buddy offers a few bucks for your boat to host their anniversary party. That influencer you met at Art Basel offers serious cash for a "content day" on your Riva. These are just a few of the tantalizing offers for others to use your precious boat, whether for free, or for a few bucks.
Look, I get it. Boats are expensive, and any chance to make them pay for themselves is tempting. But before you start saying yes to cash, let's talk about how to do this the right way, cause the wrong way will cost you a hell of a lot more than you’d ever make.
Why This Matters Right Now
Summer is off to a hot start. Gov. Ron Desantis just signed the Boater Freedom Act into law, preventing unsolicited boardings, while The US Coast Guard shut down 16 illegal charters in Miami in just three days. The polarization of these events should show you the latitude that exists on our waterways, and why you need to cross your t’s and dot your i’s if you venture into the charter world. Your boat is probably one of your biggest investments. Let's make sure it stays that way.
DID YOU KNOW? Owners and operators of illegal charters can face civil penalties of $69,000 or more for illegal passenger-for-hire vessel operations. Some potential civil penalties for illegally operating a passenger vessel include:
Up to $5,996 for failure to provide a Coast Guard Certificate of Inspection for vessels carrying more than six passengers for hire
Up to $9,624 for failure of operators to be enrolled in a drug and alcohol program
Up to $20,468 for failure to produce a valid Certificate of Documentation for vessels over 5 gross tons
Consider The Professional Approach
Companies like Dension, Fraser or Northrop & Johnson handle all the licensing, insurance, and regulatory stuff while you collect checks. Yes, they take a cut (usually 20-35%), but they also take all the headaches and liability. Think of it this way: they handle the business side, you get passive income, and your boat works even when you're not using it. Plus, if something goes wrong, it's their problem, not yours (unless its your boat that’t the problem).
What you need to do: Get your boat inspected, find a reputable charter management company, and let them handle the rest. Consider these companies don’t really mess with day charters, so you’ll have to have a big boat to do business in this realm; likely something that can comfortably handle overnights (term charters).
If You Just Want to Help Friends
Keep it genuinely private. If friends want to chip in for actual fuel and docking costs, that's usually fine. The key word is "actual"—not fuel, plus wear and tear, plus a little extra for your troubles. If they want to use the boat for their gathering and cover the $800 fuel bill and $200 docking fee? Probably okay. Charging $5,000 for the day? That's a business, and businesses need to follow regulations.
What you need to do: Keep it simple, document actual costs, and don't advertise or promote it. After working with the Coast Guard in multiple facets, I’ve learned they have teams that cruise the internet to find boats promoted for charter online. If you claim non-commercial use, but you’re listed for charter on some random site, that’ll cost ya.
What About Those Boat-Sharing Apps?
Platforms like Boatsetter and GetMyBoat can work, but read everything carefully. They often require specific insurance and still trigger commercial operation rules depending on how you set things up. Usually they are good about requiring you to provide documentation that you’ve fulfilled the legal requirements, but its still not a perfect science. You’re still liable for the safe operation of your vessel. If you get pulled over, the app is just the selling agent of your operation. You’re still the owner. You’re still responsible to follow USCG commercial regulations.
The Insurance Reality Check
Here's something most people don't think about: your recreational boat insurance probably won't cover commercial use. If something happens during a paid charter, even if that “charter” is done quietly for a friend, you could be on the hook for everything. I’ve seen people try and quietly operate charters while their insurance company doesn’t know about it, but everything is fine until it isn’t. Once those adjusters start asking your guests what was going on that day, it takes one person saying “charter” for your recreational policy to cancel itself.
This is another reason why working with professional charter management makes sense—they carry the right insurance and handle the liability.
Considering Chartering? 5 Things to Absolutely Avoid.
Don't accept payments for your boat without having some proper documentation in place.
Don't charge per-person fees. That opens you up to a set of commercial laws your recreational boat likely can’t even get certified for.
Don't assume your captain is licensed for commercial operation. Actually, don’t assume they’re licensed at all!
Don't ignore the 12-passenger rule. It applies to your 100-footer just like it applies to everyone else.
Don't operate your boat for ANYTHING your insurance policy doesn’t cover.
Take The Necessary Steps To Do It Right
Before you start accepting money for your boat’s activities, take a few quick steps to make sure that beautiful new profit stays in your pocket:
Step 1: Get Commercial Insurance Coverage
Step 2: Verify Your Captain’s Commercial Credentials
Step 3: Document It Properly with Charter Contracts and/or Invoices
Step 4: Stock the Safety Equipment Required by the Coast Guard for Your Vessel
Step 5: Understand the Charter Law That Applies To Your Boat/Activities
The Bottom Line
Look, there are absolutely legitimate ways to make money from your boat this summer. The trick is understanding the difference between making quick cash and running a legal business.
If you want to keep your cash, work with professionals who know the rules, or know the rules yourself. If you just want to offset some costs through friends, keep things genuinely private and simple.
The opportunities are real, the demand is there, and summer's just getting started. Just make sure you're doing it the right way, because the wrong way can cost you everything.
Thinking about monetizing your boat this summer? Have questions about doing it legally? Email me at Reed@RNMarine.com, or schedule a call below.
About the Author
Reed Nicol is a licensed yacht broker with experience in all corners of the marine industry. He’s worked as an executive and sales director in yacht manufacturing and distribution, has structured commercial charter operations, and designed and executed notable refits. Read more about Reed’s marine journey, his love of helping 1st time boaters and his entrepreneurial spirit here.
Reed Nicol [Licensed FL Yacht Broker #11926]
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