Shared Ownership and Use in a New Reality
If we can remake Wall Street, reenergize Detroit and restore
You must own a boat that becomes
the U.S. housing market, then maybe it’s time to rethink
popular with the Company’s users.
Your boat does not produce revenue
“business as usual” in the boating industry and rediscover
when you choose to use it.
shared ownership and use options.
2
Craft
your own private partnership
(sometimes called timeshare).
By Captain Howard Edson
Two or more partners agree to
own a boat jointly and share equally
in valuation, upgrades, expenses,
depreciation, etc. The owners are the only
When I look at the profusion of another way that might better meet users, so they may expect the boat to be
yachts sitting idle at a marina on any our needs. Not knowing the process or treated kindly, with few if any conflicts
day (even weekends and opening where to begin, we become hostage to in scheduling. One to four partners
day!) I marvel at all the money it “we’ve always done it this way”. seems to balance cost and convenience.
takes to keep the fleet at the dock. For These aren’t hard times for the The necessary management, operations
example, Shilshole Marina has slips boating industry – they are new times – and administration functions may be
for about 1600 boats. A quick math and old ways of doing and threadbare assigned among the partners or turned
calculation shows that if the average excuses are gradually giving way to over to a management company who
boat length were 45 feet the moorage new paradigms in every domain of will manage same. The latter has the
fees might approach a million dollars society. You might say shared options advantages of saving partners’ time
per month. Doesn’t it seem absurd are our contribution to “going green.” and being a neutral mediator in the
that 1600 individual boat owners make event of a conflict.
monthly contributions totaling nearly Boat owners have at Pros:
one million dollars to the Port of Seattle least three options available to retain Few highly qualified users in a
coffers… for the privilege of watching ownership and use while substantially tailored partnership.
their boats wear out while sitting at the reducing cost: Boat ownership costs cut in half or
dock? As a social model we’ve lost the more.
tenuous balance between individualism Nearly unlimited use – for practical
and reasonableness. As an economic 1
Place your boat with a charter
company who both manages and purposes.
model it is misuse of an asset that rivals maintains it, and remits a portion of the Pool of individuals to share the
anything we’ve seen from Washington, revenue to you when it is chartered out management/maintenance workload.
all W Street or in Detroit. Every boat to their customer. The must partners tailor
owner knows that sole ownership is Sailing schools, clubs and charter all the terms of the Agreement
anything but economically efficient! companies usually don’t own their Option so as to do management/
Perhaps the boating industry is fleet. They work with boat owners to maintenance internally or externally.
stagnant not because of a weak place a desirable boat in their Company Cons:
economy, but because its business fleet. Revenue is a function of how Time and energy required to
model is limited. If we can remake Wall popular your boat becomes in the fleet. manage an active partnership.
Street, reenergize Detroit and restore One rule of thumb is that you may Decisions on non-routine expenses
the U.S. housing market, then maybe expect to defray half of your total cost and upgrades must be negotiated.
it’s time to rethink “business as usual” of ownership each season. And you can Issues of “chemistry” among
in the boating industry and rediscover retain reasonable use rights. partners.
shared ownership and use options. Pros: Potential conflicts over use or
Why aren’t shared options more Institutionalized operators have a vessel abuse.
popular among Americans? Perhaps proven track record - minimizing your
it’s a cultural thing. Our rugged risk.
individualism inhibits us from being Substantially reduces your annual 3
Cr
eate and manage your
own leaseshare company.
skilled at partnerships. Perhaps our boat cost -- but no revenue guarantees. In leaseshare you simply project
love of boating is so woven into our No maintenance or management your use needs and then purchase time
identity and lifestyle that we willingly requirements on your part. on a single boat, which you then can
pay the price of sole ownership – call it You have reasonable, but not use on a schedule. Any boat owner can
tenacity or foolhardiness. The bumper unlimited, use of your own boat. choose to retain sole ownership and
sticker on the back of the old clunker Cons: fashion a leaseshare agreement with
says it all: “my other car is a boat.” Or Expect higher wear and tear than one or more partners (possibly up to 8)
perhaps it’s just lack of familiarity with sole ownership. for a specific amount of use per season.
48° No r t h , Fe b r u a r y 2010 Pa g e 40
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