Price for dry lease mooney m20c

[rwabdu]

Thinking about dry leasing my m20c to a friend. Anyone have any reference for what I should charge per hour? It's IFR with a garmin 175 gps, adsb in and out, stec autopilot etc etc. All the previous posts on this topic were circa 2016. Not trying to earn a profit off of a friend, just find a fair number we can both afford and pay some fixed costs which are about 900$/month (hangar, annual, insurance). Anyone have a sample contract for a dry lease I could use? 

Edited December 23, 2022 by rwabdu

[N201MKTurbo]

What are your hourly expenses? What are your yearly expenses? How many hours does the plane fly a year? 
 

It matters a lot where you live. How much is hangar, insurance, maintenance and inspections? 
 

Renting it out dry can be a problem unless you top it off after every flight.

Renting it out wet can be a problem if the renter likes to buy gas at the fancy FBOs
 

I used to track all that, but I got over it.

[glbtrottr]

I rent a Baron for $110 dry


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[Bartman]

Using round numbers I would use a minimum of 100/hr for your fixed expenses and another 25/hr for your engine and avionics reserve.  That's 125/hr fixed expenses dry at a very minimum, probably a little more.  Add fuel to that at fixed rate per hour and just rounded to 10gal/hr at 6/gal is another $60 so your are at about 185/hr for your friend.  That is with you assuming some liability and maybe even lost use of your plane if there is ever an unfortunate event.

Thats my quick calculation on a napkin that was under my holiday cocktail.

[Echo]

If he is your friend charge him a hundred an hour wet and make him pay what ever additional insurance fee to add him to your policy.

[LANCECASPER]

Just make sure that everything is in writing so that there are no misunderstandings. Make sure you're insured for market value and that he is named on the policy or you could lose a friend and an airplane with one mishap or misunderstanding.

[A64Pilot]

Way back when I was renting, aircraft were never rented dry, reason was it had been done, but many engines damaged doing so by renters saving fuel by leaning out at high power as they were renting by the hour.

‘As you’re renting you want to cover ground as fast as possible and that means high power.

In other words, if you rent, do so wet.

[midlifeflyer]

I'd look at local flight schools and rental FBOs to get an idea of rates in your general area. There are enough cost equivalents out there. Less now with TAAs replacing retracts for commercial and CFI training, but there are still Cutlasses and Arrows around. Compare those with your average (or estimated) annual operating costs (excluding fuel) divided by hours flown. I'd use that as a starting point. You might go a bit less since you are not dealing with the issues of a larger operation - student pilots placing extra stress on landing gear, costs based on the lowest common denominator; the higher insurance costs for airplanes rented more publicly.  

And yes, as others said, put the arrangement in writing. It doesn't have to be super formal. You are probably going to want to make the arrangement cancellable at will by either of you, so it's really just about the two of you being on the same page. A retained set of emails back and forth should be enough.

Insurance: most policies allow some degree of casual rentals. Check with them. And if your friend is inexperienced enough to generate a higher premium by adding them to the policy, either have them pick up the excess or incorporate a fudge factor into the rental fee. People argue all the time about whether naming someone else on your policy dilutes your coverage. An alternative to naming them is to rely on the open pilot warranty and have them purchase their own non-owner policy.