Ask a Maritime Attorney: How do I lend my boat out for charters?

Question: I own a 48-foot motor yacht that I would like to offer for charter to offset my costs of ownership. I have done a little research on this, but I have heard conflicting versions of the legal guidelines for passenger count, licensing, and other aspects of the operation. I understand that “bareboat” chartering allows more flexibility in certain areas but I am not sure how far we can extend that flexibility. Can you provide an overview of the regulations for this type of charter operation? Answer As we have discussed in prior installments of this column, vessels which operate in U.S. waters and carry at least one passenger for hire must comply with a long list of strict Coast Guard regulations, starting with a limit on the number of passengers they may carry (usually six or fewer paying passengers). Even these “six-pack” charters must comply with regulations which require the vessel to be built in the United States and to be operated by a Coast Guard licensed captain. However, as suggested by our reader, a “bareboat” charter structure may provide an avenue for boat owners who wish to charter their boat, but who are unable to comply with the complex rules that...