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#1
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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 |
#2
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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
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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
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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 |
#5
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Curious about the "Terrible - Especially with two Doctors" comment. I am
conteplating a partnership in a '75 Mooney M20C with a Doctor. Please elaborate. Thanks !! Jon Kraus PP-ASEL-IA Student Aircraft Purchaser WARREN1157 wrote: 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 |
#6
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Curious about the "Terrible - Especially with two Doctors" comment. I am
conteplating a partnership in a '75 Mooney M20C with a Doctor. Please elaborate. Thanks !! A doctor as a partner couldn't be better. He has the disposable income to pay his share of the expenses but doesn't have the free time to fly. What more could you ask for ? --- Ken Reed http:///www.dentalzzz.com |
#7
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THat was kind of what I was thinking.... Thanks.
Jon Ken Reed wrote: Curious about the "Terrible - Especially with two Doctors" comment. I am conteplating a partnership in a '75 Mooney M20C with a Doctor. Please elaborate. Thanks !! A doctor as a partner couldn't be better. He has the disposable income to pay his share of the expenses but doesn't have the free time to fly. What more could you ask for ? --- Ken Reed http:///www.dentalzzz.com |
#8
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Curious about the "Terrible - Especially with two Doctors" comment. I am conteplating a partnership in a '75 Mooney M20C with a Doctor. Please elaborate. Thanks !! A doctor as a partner couldn't be better. He has the disposable income to pay his share of the expenses but doesn't have the free time to fly. What more could you ask for ? Well, you could ask for a partner with similar ideas about how to use and maintain the aircraft. Most of the decisions you have to make with your partner will be related to maintenance, most of the rest are related to upgrades. If one partner has lots of cash and wants to pay overtime rates to have the plane fixed -now-, and the other partner wants to wait and ferry the airplane to another airport with lower labor rates at his convenience, there's going to be conflict. All that has nothing to do with whether the partner is a doctor, of course, that part is just ignorant doctor-bashing. |
#9
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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. |
#10
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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 |
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