Opinions on partner ownership

[Cooler]

I am thinking about selling a half ownership of my boat. Are there people out here in CYO world that have been involved with that type of arrangement? Seems each year I am actually using the boat a little less, but enjoy having the space to use as home away from home. I know there are positives and negatives of partnership arrangements, so I am requesting that input from the CYO resource group. Years ago, I was in a joint ownership of a sailboat with my father-in-law. I felt obligated to invite the in-laws along every time I used the boat, although I did have occasion to want to be solo, or with other friends. While this is not financially motivated, it would be nice to cut maintenance expense in half. Really conflicted with this idea. Thoughts?????? er

[km1125]

Following the thread, because I'm sure it'll be an interesting one.

My first boat was a partnership with a friend. That worked out great for the first several months, but then my job transferred to a different state so I didn't get to use the boat much. He (graciously) took over all the financial obligations since he was using the boat more than I was, but I still had an ownership stake. The following year he hadn't been using the boat much mostly because the weather sucked and the season ended and the boat ended up in winter storage. Then, weirdly, I took a new job back in the state but he took one out of state. The boat sat in storage in that intervening year. When I got to re-launching the boat I found that there was also not much maintenance being done and ended up doing a major restoration on it (not all of that was due to lack of maint though, as it was an older boat). I ended up putting a lot of money and time into the restoration and (obviously) didn't recover that when it eventually sold, so there weren't much proceeds to split.

As in most cases of split-ownership, we should have had a much more thorough understanding of the maintenance and expenses and how they would be covered. But, it was the first boat either of us had ever owned and we really didn't know what we were getting into either.... it was just for fun.

Had a dock neighbor that had joint ownership on a sailboat and their logic was that it was better because they'd both be sailing it together. Didn't happen much, as the one guy was busy with work and the other guy was retired. They didn't end up using it anywhere near they had anticipated, but the retired guy ended up spending a lot of weekdays on it just relaxing and 'putzing' fixing things up on the boat.

[bud37]

Just like Big Bang make sure to have Sheldon write you up a relationship written agreement covering maintenance, usage time, eventual sale and weekly responsibilities, perhaps a shared account for maintenance that both contribute to etc. .....sounds like that might not be friendly but there is an old saying about deals with friends......

So a question if I may, if you aren't needing to do this for money then........

[tomschauer]

This is a tough one. Like any partnership, it could go very well. But with a boat, I would think it would be a bit more challenging. I can think of maybe two friends I would consider this with. They have the same ideals and integrity as I do. So I know I know the boat would be treated as I treat it and would be always left in the same or better condition after a usage as it was before a usage.
The wrong partner may run the boat a lot harder than the other, and sometimes "forget" to top off the fuel, pump out the holding tanks, check the oil etc. For me, i know what condition my boat will be in when i park the car at the marina. I don't want the surprise of empty fuel tanks, or worse, full holding tanks when you arrive after hours for the weekend!
Then you have the issues of repairs. lost an engine? If you owned the boat previously, your partner may say he or she bought into a problem. If you bought it together (I believe this would be the best way) then it is a matter of do you both have the money to split the repair, or make the decision to cut your losses and sell. If you buy an older boat and an engine or engines fail, it may cost more to repair than the boat would be worth. Is this addressed in your partnership agreement?
A whole lot of things to consider.

[tomschauer]

If my buddy Tim sees this post (also a forum member) he will get a chuckle out of this one.

Three or four seasons ago we had a new slip neighbor. He had partnered with a friend on a Trojan (I think an f32 or 34?) the partner that originally owned the boat was seldom seen. Between the two of them, prior to moving into our marina, did a great job restoring the late 70's trojan. It looked as new. The partner that was on the boat every weekend was new to boating. The first weekend there he couldn't get the a/c to work and asked if i could help. Sure, no problem. I went into the salon, he showed me the nice new carpet he installed. Unfortunately, he installed it as you would in a house, stretched tight with perimeter tack strips. He covered all of the access hatches!!! He didn't think there was any reason to get in there!! He pulled the carpet, and I purged his a/c line and go that working for him, but it was all downhill from there.
I will add two examples, there were many more, and no, I am not making this up.
We are on the Sassafras River off the Chesapeake Bay. One trip he made to go for dinner in Havre de grace (about 25 miles each way) he made it almost back to the marina and had to be towed in. Told me he didn't know what happened, the boat was running fine and then just died. I asked if he ran out of gas. He said no way, he put 30 gallons in before the trip. A couple of 5-gallon cans and he was able to get the fuel dock.
Another similar trip, about five miles further each way, he came back to the marina on one engine. Said everything was running well at about 5000 rpm's when a buzzer kept sounding on the bridge. No, he didn't back off, kept going, didn't know what the buzzer was. again, somehow, almost made it back but was towed in again. Next day he said something was wrong with the one carburetor, because when he ran the engine, it spit out oil, and there was a lot of oil in the bilge. I told him he blew the engine, but that was not possible as they were brand new.

I just listed the first and last incidents, there were several in between. After the last one the boat disappeared, and we have not seen it since.

[Viper]

I've had to deal with customers in partner ownerships. Most were unpleasant experiences for me and as a result I started staying away from those repairs years ago. Best advise I can give is put everything in writing regarding use, annual costs, and maintenance and repairs, and don't partner with a friend if you want to maintain your relationship with them.

[Cooler]

I knew I would great insights from you all! The way this idea popped up was, I met a newly retired guy looking for a boat. First time owner, but realizes the water resource in our area is what he and his spouse would like to experience. After a visit, he asked me if I would help him find something appropriate and he would compensate me for guidance. ( I don't want comp. I enjoy doing this. ) After a visit with both, we came to a conclusion that they need a 32ish foot boat. He has a mechanical background so totally understands that part of boating. They are financially responsible. Good people and possess common sense. They need experience with boating in general. He wants a 32ish ft boat, but his wife wants a 26' boat budget. Answer to Bud's question: I plan to sell in the next 2-3 years, and downsize if I continue boating. If I sell half now, I can protect myself from any drastic market downward trend. Yes, there would be a Sheldon Relationship Agreement, as well as buyout formula based on value guide. This may lock in a future sale. The boat would get used more, justifying the base maintenance, slip & storage expense. Seems like a win-win. I have not proposed this idea, but sense they would be very interested. Thanks to all for your input, I look forward to more insights. er

[Cooler]

A friend of mine had a partner on a small boat. My friend had some experience, his partner had none. First time the partner took the boat out, he dragged the lower unit through a thick black sand area, plugged up the water flow, and blew the engine because he had no idea what the gauge and alarm was telling him. The partner said, " no idea what happened, all of a sudden there was lots of black smoke exiting the engine compartment". Sold the boat for less than repair cost. My buddy will never do a boat partner arrangement again. er