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How to rent out my airplane



 
 
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  #1  
Old August 19th 04, 06:32 PM
Isaac McDonald
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Default How to rent out my airplane

I am thinking of buying an airplane....I want to rent it when it is not in
use to recoup some of the cost of buying the plane. How hard is it to do
this? What are the insurance costs? How often do I need to get it checked
out by an aviation mechanic? How much is the maintenece? Do I have to go
through an FBO? Or can I just place a classified ad....eg. "plane for
rent...$50 an hour".

Thanks in advance.

Isaac


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  #2  
Old August 19th 04, 06:52 PM
Dave Butler
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Isaac McDonald wrote:
I am thinking of buying an airplane....I want to rent it when it is not in
use to recoup some of the cost of buying the plane. How hard is it to do
this? What are the insurance costs? How often do I need to get it checked
out by an aviation mechanic? How much is the maintenece? Do I have to go
through an FBO? Or can I just place a classified ad....eg. "plane for
rent...$50 an hour".


Hi Isaac, based on some of your questions, I'd guess you're inexperienced at
this, so I'd stick with arrangements with people you trust.

If there's an FBO owner whom you trust you can work out a contract (sometimes
called a leaseback) with him. The contract spells out who is responsible for
maintenance and inspections, who is responsible for collections, who checks out
the renters, who pays for the insurance, what the acceptable uses of the
airplane are, etc.

Check out nearby flying clubs to see whether they're interested in leasing an
airplane. The contract with the flying club will be similar to the leaseback
contract mentioned above.

You could also start your own flying club. That limits the field of renters and
might give you more control.

This area of aircraft ownership is a minefield. There are some success stories,
and a lot of horror stories. I'm sure you'll get some "don't do it" responses to
your questions.

Based on what I perceive as your inexperience, I'd suggest you start out by
renting someone else's airplane or joining a club. Observe how the business
arrangements are handled, then take a baby step into ownership. For example, you
could partner with someone who already has experience in owning a leased aircraft.

Look through the archives of this newsgroup at http://groups.google.com and
you'll find lots of information about the cost of inspections, maintenance, and
insurance.

AOPA has some information about leasing. Check their web site or give them a
call. If you're not a member, join.

You're on the right track. Sole ownership of an airplane can be problematic, if
you can't fly it enough to spread the fixed cost over a number of hours. A
simple partnership with one or two friends you trust would be another way to
solve that problem.

Good luck, and welcome!

Dave

  #3  
Old August 19th 04, 06:57 PM
Brian Sponcil
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It's my understanding that if you're going to rent out your plane you need
to have commercial insurance which is VERY expensive - probably on the order
of $500-$800/month. I'm not sure if you'd need the 100 hour inspections but
if you did it'd be another big expense added on to the usual maintenance
which is already expensive.

Bottomline is that unless this thing was really hopping in rentals (which
defeats the purpose of owning anyway) you'll be worse off than just letting
the thing sit in the hanger. Perhaps you should consider a partner in
owning instead.

Just my $0.02.

-Brian
N33431
Iowa City, IA

"Isaac McDonald" wrote in message
...
I am thinking of buying an airplane....I want to rent it when it is not in
use to recoup some of the cost of buying the plane. How hard is it to do
this? What are the insurance costs? How often do I need to get it checked
out by an aviation mechanic? How much is the maintenece? Do I have to go
through an FBO? Or can I just place a classified ad....eg. "plane for
rent...$50 an hour".

Thanks in advance.

Isaac




  #4  
Old August 19th 04, 08:04 PM
Murphy
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Default

I am thinking of buying an airplane....I want to rent it when it is not in
use to recoup some of the cost of buying the plane. How hard is it to do
this? What are the insurance costs? How often do I need to get it checked
out by an aviation mechanic? How much is the maintenece? Do I have to go
through an FBO? Or can I just place a classified ad....eg. "plane for
rent...$50 an hour".


As for insurance, you could insure it just for yourself to fly, and then
require your renters to carry renter/borrower insurance for the full hull
value.


  #5  
Old August 19th 04, 08:33 PM
Isaac McDonald
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"Murphy" wrote in message
...

As for insurance, you could insure it just for yourself to fly, and then
require your renters to carry renter/borrower insurance for the full hull
value.


Would I still be liable for the increased maintenece intervals if I went
that route?

Isaac


  #7  
Old August 19th 04, 09:23 PM
Margy Natalie
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Default



Murphy wrote:

I am thinking of buying an airplane....I want to rent it when it is not in
use to recoup some of the cost of buying the plane. How hard is it to do
this? What are the insurance costs? How often do I need to get it checked
out by an aviation mechanic? How much is the maintenece? Do I have to go
through an FBO? Or can I just place a classified ad....eg. "plane for
rent...$50 an hour".


As for insurance, you could insure it just for yourself to fly, and then
require your renters to carry renter/borrower insurance for the full hull
value.


I would be REALLY careful about that. Most insurance policies do not allow you
to rent out your aircraft. We had the Navion on leaseback for a bit until the
insurance made it too expensive. Renting your aircraft requires the commercial
insurance. Simply renting your aircraft does not increase the maintenance
intervals, but it might increase the amount of maintenance. I would say a
partner or two would be the MUCH better way to go.

Margy

  #8  
Old August 20th 04, 01:06 AM
WARREN1157
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Just my $0.02.

1969 Aero Commander 100, cheap airplane only owner - Best

1963 182, Started 4 partners, bought them out - Bad. After I bought them out -
Better

1963 Mooney, 1 other partner - Better

1980 172 five person club - Terrible - Especially with two Doctors

Sole ownership of an older clean airplane is the best for Me without a close
second.

Just my 2 worth



  #9  
Old August 20th 04, 01:09 AM
WARREN1157
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Default

As for insurance, you could insure it just for yourself to fly, and then
require your renters to carry renter/borrower insurance for the full hull
value.


Hard to enforce and the Widows have no mercy on you, (my group didn't) If there
is an insurance problem then you are still liable because of partial ownership.

  #10  
Old August 20th 04, 02:56 PM
ET
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Default

"Murphy" wrote in :

I am thinking of buying an airplane....I want to rent it when it is
not in use to recoup some of the cost of buying the plane. How hard
is it to do this? What are the insurance costs? How often do I need
to get it checked out by an aviation mechanic? How much is the
maintenece? Do I have to go through an FBO? Or can I just place a
classified ad....eg. "plane for rent...$50 an hour".


As for insurance, you could insure it just for yourself to fly, and
then require your renters to carry renter/borrower insurance for the
full hull value.



From what I understand, the "renters insurance", also called non-owned,
will only cover losses for which the renter is liable due to there fault or
negligence....

So if your renter crashes due to an engine out, due to a dead magneto or
other failure that was not his fault, you then have zero coverage for that
plane.

--
ET


"A common mistake people make when trying to design something
completely foolproof is to underestimate the ingenuity of complete
fools."---- Douglas Adams
 




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