A Guide to Boat Sharing

While boat ownership is something many New Zealanders aspire towards, buying a boat outright may not be the best option for everyone, John Eichelsheim explains. He explores an alternative way to get your boating fix…

Boats are expensive and many of us are time poor, leaving us wondering whether we will get enough use out of a boat to justify its purchase price and upkeep.

Bigger vessels can cost tens of thousands of dollars a year just to store, let alone insure and maintain. Smaller boats and jet-skis cost less, but the financial outlay is still considerable and with our increasingly urban lifestyles, storing them at home is not always easy, or even possible.

So, what about going shares in a boat? Shared ownership spreads the purchase price and maintenance costs between two or more people, making boat ownership much more affordable.

The shared ownership model is an increasingly popular entry into the boating lifestyle or an affordable pathway towards enjoying the sort of vessel you have always dreamed of.

It’s not uncommon for families or a couple of mates to club together to buy a boat between them, but such arrangements are not without danger, especially if there is no formal contract between the parties. Families and friends fall out, personal circumstances change and disputes over liability for damage, maintenance costs and access to the vessel can sour relationships to the point where partnerships become untenable.

The syndicate approach

One way to minimise any uncertainties or disagreements arising from shared boat ownership is to form or join a syndicate with mutually agreed conditions of ownership. Successful private syndicates operate right around the country.

Another option is to work with a company offering fractional ownership. Individuals, usually strangers to one another, buy shares in a vessel, dividing not only the cost of ownership, but also its use between them.

Shares vary between syndicates, companies and vessels, but as many as 10 equal shares are possible. Sometimes one member of a syndicate buys more than one share, which allows more time on the boat.

Boat share companies provide their clients with an opportunity to partially own and partially own and operate their dream boat.

With boat share company Ownaship, even a 10 percent share offers the potential of up to 33 days’ exclusive use of the vessel per year, which is far more than most boat owners ever manage on their own boats. A 1/6 share offers 57 days, which is Ownaship’s standard share.

Different companies offer trailer boats, jet-skis, keel yachts and large motor yachts for syndicated ownership. Some, like Ownaship and 36 Degrees, include management and boating education services as part of the deal.

Perhaps the biggest advantage of shared ownership is the ability to divide the cost of purchase, maintenance and storage between the shareholders in the syndicate. Fractional ownership lets people go boating for a relatively modest outlay – a fraction of the cost of owning a boat outright.

In some cases, shareholders also enjoy the benefits of walk on, walk off boating. Ownaship, for instance, takes care of cleaning and valeting after every trip, plus linen, towels, and basic provisions. Servicing, maintenance, insurance and berthage are also included in the price.

Boat share companies

Companies offering boat share options include Auckland-based Ownaship and 36 Degrees.

Boat share company Ownaship is one of the better-established fractional ownership companies in New Zealand.

It offers shares in a range of vessels, power and sail, including smaller Rayglass 2500 and 2800 powerboats popular with recreational fishers.

Other popular models include Rayglass 3500 motor yachts, Maritimo M51 luxury motor yachts and Lucia 40 sailing cats. New additions to the fleet will include a Maritimo X50, an M55 (next year) and an MY40 powercat. Ownership currently has 21 vessels in syndicate ownership but will soon have 23 as new boats arrive.

Ownaship is offering 1/4 shares in a Maritimo M55 luxury motor yacht.

Ownaship also has options for sailors.

Smaller models are dry-stack stored while larger ones are kept on marina berths in Westhaven.

“With an Ownaship boat share you can have your dream boat without the guilt, the price tag, or any of the hassle,” the company states on its website.

A boat share also gives you equity in the vessel, which you can sell at any time.

“We service, clean and maintain your boat for a shared modest annual fee… And because it’s so easy to go boating with an Ownaship boat share (thanks to us looking after the hard stuff), you’ll do it all the more.” 

With Ownaship, the vessel is professionally managed, which gives peace of mind, and they can even organise catering and provisioning, skippers, valet parking, refuelling and boat relocations if desired.

36 Degrees is another Auckland company offering boat syndicates through The Yacht Collective. It offers 1/6 shares in a variety of sail and motor yachts.

With The Yacht Collective, owners purchase equity in a late model boat and pay a monthly fee for maintenance expenses and running costs (excluding fuel).

A 1/6 ownership in the boat entitles owners to a minimum of 54 bookable days per year and unlimited standby access.

Motor vessels include a Beneteau GT40, Salthouse Corsair 44, Beneteau Swift Trawler 41, a Swift Trawler 35 and a Beneteau K2 1050. In addition, The Yacht Collective offers shares in a Beneteau Excess 12 sailing catamaran and a Beneteau Oceanis 46.1 yacht.

They offer professional management, including servicing and maintenance, and a no-hassle walk-on, walk-off boating experience. That means more time spent boating.

The Yacht Collective also offers a comprehensive handover to every new owner and can arrange training and professional skippers.

PWCs too

Auckland company Jetshare offers flexible timeshare options in late model SeaDoo PWCs (personal watercrafts) with pick-up and drop-off options around the city. Various packages are offered, with a minimum 12-month commitment.

PWC models include dedicated fishing skis and Jetshare’s PWC packages are supplied with everything you need for a safe, enjoyable day on the water, including comprehensive safety equipment and accessories. They take care of maintenance and servicing, as well as insurance, and Jetshare also provides training and support.

A fresh approach for trailerboats

Trailerboat hire is nothing new, but the Skipperi model, brought to NZ from Finland, is a fresh option for Kiwis.

What differentiates Skipperi from other NZ boat-share companies is that a membership provides access to a fleet, rather than to a specific vessel.

Skipperi’s newly-built collection of 15 Haines Hunter SF545’s are bookable by the day, with users able to book up to two sessions in advance. Membership starts at $240 a month for weekday access, or $390 for weekdays and weekends.

The vessels are housed at Westhaven and similar to other boat share schemes, the maintenance and cleaning of the vessel is mostly handled by the Skipperi crew, offering a walk-on, walk-off experience.

Form your own

Richard Bathurst is part of a private syndicate that owns a 2004 diesel-powered Rayglass Legend 850, kept at Oram’s dry-stack in Westhaven, Auckland. Comprising 10 members, each with an equal share in the vessel, the syndicate has recently offered the Rayglass for sale, pending its replacement by a new Tristram 821 diesel inboard.

Richard joined the syndicate around four years ago when its founder, whom he knew well, indicated one of its members wanted to sell his share. Richard was keen and negotiated directly with the shareholder, paying $14K for a 10% share in the boat, which he can on-sell at any time.

Richard’s experience with fractional ownership has been excellent. Compared to the arrangements of some of the bigger boat share companies, his syndicate is relatively informal. There is a written agreement between members outlining the syndicate’s operation, boat allocation and care, but it’s something they have drafted themselves.

Good communication is the key to everything working well, says Richard, and while he doesn’t know some syndicate members well, they all work together. Occasionally, they meet to discuss extraordinary issues like re-powering the boat and agreeing to sell it to purchase a new Tristram, as happened recently. Majority decisions are binding.

Over and above the share purchase price, Richard pays $200 per month, which covers storage, routine maintenance, insurance and a few professional valets each year. Each member is expected to refuel and clean the boat before putting it away.

Members are allocated a certain number of boat days a year, including one weekend day every five weeks, booked on a dedicated web page. If an allocated day is not needed by one member, another member can book it. Members can also negotiate with one another if they want the boat for a weekend or longer.

Some syndicate members make more use of the boat than others, says Richard, depending on their circumstances, and demand is stronger at certain times of the year, but it’s a very flexible system.

“I like to fish during the week, which is when the boat is often free. I look ahead a few days for a weather window and then book a suitable day if it’s free. It works well and I love having the flexibility.”

The advantages for Richard, apart from the very reasonable cost, include the fact that the boat gets plenty of use, so any problems are quickly identified and dealt with.

“It’s not like some boats that spend a lot of time idle; when we hop aboard everything works.”

Any downsides?

“Not really,” says Richard, “except maybe others not cleaning the boat to my [high] standards! Oh, and not letting others know if something breaks, but that’s only ever happened once!”

Otherwise, it’s the perfect way to own a boat, he reckons: “I couldn’t justify to the missus us buying a new Tristram 821 if we were doing it on our own, but when we split the cost 10 ways, she’s good with it. Sweet!”

What if it’s not for you?

Most syndicate holders love the hassle-free shared boat experience, but it’s not for everyone; sometimes they realise boating’s not for them or their personal circumstances change. Fortunately, if you need to get out for any reason, selling a share is usually easy.

Richard and Jill Haywood bought a 1/10 share in a Rayglass 4000 with Ownaship a few years ago. As keen trailer-boaters whose kids have grown up, they were looking forward to a more relaxed boating lifestyle in a bigger motor yacht with stay-away capabilities.

While they felt Ownaship was very professional and very open about what fractional ownership entails, after a year they decided boat sharing wasn’t really for them.

“While we both enjoyed the boat and loved the walk-on, walk-off aspect, as a couple we didn’t feel we were getting the most from our share,” explained Richard. As it turned out, Jill concluded she didn’t always enjoy the motor yacht experience, sometimes feeling hemmed in on the boat.

The Haywoods did, however, appreciate the way the boat was always immaculate when they stepped aboard and commented that the whole Ownaship operation is exceptionally well run.

“For the right couple, it’s a great way to go boating and enjoy a vessel they might not otherwise be able to afford,” he says.

After 12 months, Rick and Jill decided to exit the boat and got the full amount they’d paid for their share back when they sold it.

“The only cost to us for 12 months of boating was the monthly service fee and our portion of repair costs to a sterndrive. That’s pretty good value,” says Richard.