Start A Jetski Rental Business

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How To Start A Jet Ski Rental Business: Real Passive Income?

How To Start A Jet Ski Rental Business Step-By Step

Are you interested in owning and operating a jet ski rental company? You might be wondering how to start a jet ski rental business without any money and even if you don’t have any experience. Below is a step-by-step guide for you. 

One business you should consider opening if you are thinking of starting a travel and tourism business is a Jet Ski rental service. For any start-up entrepreneur, renting is an extremely lucrative business, especially when you don’t want to deal with the difficulties of manufacturing goods.

It would be a great idea to start a Jet Ski rental business if you live near a beach where people go to ski or to play sports for fun. With the right location and good management practices, you can make quite a bit of money from this line of business.

The Jet Ski Rental business involves renting out jet skis to beach-goers during summer. Renting jet skis on an hourly basis is the business’ main source of revenue. It rents jet skis to individuals 16 and older for a profit. If you have the passion for it, this is something you might want to try.

The Jet Ski rental business is limited to a specific geographical area, which is why prior to launching one, you must ensure that the location is conducive for this type of business, basically at a beach.

Towards the end of this article I’ll answer some of the most frequently asked questions on how to start a jet ski rental business…

But most importantly, I’ll show you the exact system I used to build my own business to over $40,000 a month in mostly passive income.

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Table of Contents

Steps To Starting A Jet Ski Rental Agency

1. Understand The Industry.

Jet ski rental business is a great business with a lot of growth potential. Just pick a spot near a coast, learn how jet skis work and how to maintain them, a few reliable jet skis, and get started.

This business comes with a bunch of other challenges. Getting a license, finding the right location, keeping your costs down, etc. are some of them.

Jet Ski rental businesses can be very expensive to set up, as you will be required to start with a fleet of jet skis. You have to pay a lot to purchase, maintain, and retain a jet ski.

You can buy a new jet ski anywhere between $2,500 to $10,000, depending on the model and brand, while a secondhand jet ski costs only half as much.

Additionally, you need to set aside a certain amount of money for repairs and to make sure that the machine runs properly.

2. Conduct Market Research And Feasibility Studies.

Travelers and tourists are most likely to use Jet Skis as they want to enjoy a day out on the water or engage in water sports.

It’s also a way to get around by water. Others who might need Jet Ski rental services include the young adults, working class, senior citizens, and anyone who can afford it.

3. Decide What Niche To Concentrate On.

There are many niches in the Jet Ski rental business as they all have to do with getting customers from one place to another on the water. Some of the areas of specialization in the Jet Ski rental business are as follows:

  • Transport services
  • Individual services
  • Corporate services
  • Leisure services and any other related services

It’s a smart move to specialize in more than one niche. This could prevent you from falling behind your competitors who may be attracting more clients because of their multiple areas of specialization.

4. Know The Major Competitors In The Industry.

It is common knowledge that brands that are well-known are those that have been used for quite a while and have proven to perform better than any other product available.

The following are some of the most well-known Jet Ski rental brands here in the United States:

  • Kawasaki Jet Ski Ultra 310LX
  • Bigger Boat: Midnight Express 39S Open
  • Yamaha Waverunner Superjet
  • Gibbs Sports Amphibians Quad Ski
  • Yamaha FZR
  • Sea-Doo Spark

5. Decide Whether To Buy A Franchise Or Start From Scratch.

Franchises are better for this kind of business, as they allow you to benefit from their prior experience and lessons learned.

If you start this business from scratch, you’ll learn more about entrepreneurship and get the experience you wouldn’t get from a franchise. Starting from scratch will require you to hustle hard to get customers. Even so, it’s still not a guarantee.

6. Know The Possible Threats And Challenges You Will Face.

The fact is that no business is without its ups and downs. A bad economy would be one of the major threats and challenges to your Jet Ski rental business.

An economic downturn can result in less disposable income and per capita income, which leads to fewer people renting Jet Skis.

A further challenge in starting a Jet Ski rental business is getting the necessary finance.

Finance plays a crucial role in every business, and if you don’t have it, you won’t be able to get your business off the ground or go big.

The location of your business can also pose further challenges to your business. A bad location can cause discomfort to your customers and in turn, negatively impact your business,

7. Choose The Most Suitable Legal Entity (LLC, C Corp, S Corp).

Considering the nature of Jet Ski rental is quite unique, you cannot begin your business with just any type of business structure. Owners of jet ski rental shops typically form a Limited Liability Company (LLC).

A large reason for the popularity of the LLC is that it combines the benefits of both partnership and corporation legal structures.

8. Choose A Catchy Business Name From The Ideas Below.

Your company’s name impacts how your customers perceive your business. Therefore, you should pick something creative.

Choosing an interesting business name can be a challenge if you are starting your own business. Here are some suggestions:

  • Action Craft
  • Coastal Craft
  • Dusky Marine
  • Free Spirit Yacht
  • Global Marine Specialties
  • Hacker Craft
  • MasterCraft Jet Co.
  • Maverick Boats
  • Motion Marine
  • Seabreeze Charters

9. Discuss With An Agent To Know The Best Insurance Policies or Insurance Provider for You.

Starting a Jet Ski rental business requires basic insurance policies such as the following:

  • Liability Insurance
  • Personal Accident Insurance
  • Personal Effects Coverage
  • Workers’ Compensation
  • Collision Damage Waiver
  • General Liability

10. Protect Your Intellectual Property With Trademark, Copyrights, Patents.

If you want to be successful in this business, you need to safeguard some of the intellectual property rights like your business logo, banner, jingle, and other elements that can be used to rob you off of your profit. To avoid this, filing for intellectual property protection is a smart move.

11. Get The Necessary Professional Certification.

A professional certification is necessary for running a Jet Ski business in the United States. Apart from the certificate, you will also need to find out from your state what else is required to start a Jet Ski rental business.

12. Get The Necessary Legal Documents You Need To Operate.

Businesses need legal documents to be able to operate. The following are some of the legal documents that are needed for you to successfully operate a Jet Ski rental business in the United States:

  • Certificate of Incorporation
  • Contract Document
  • Operating Agreement
  • Insurance Policy
  • Business Plan
  • Business License
  • Offer Letters

13. Raise The Needed Startup Capital.

Finance is important for every business, and Jet Ski rentals are no different. In order to establish or continue a business, finance is essential. It is not an easy business to get started in Jet Ski rental, and raising capital isn’t going to be as easy either.

Hence, it is necessary to develop a solid business plan so that the company can succeed in the long run. By creating a business plan you are not only able to attract investors, but also identify revenue-generating sources. The following list is a list of ways that you can generate finance for your Jet Ski rental business:

  • Approach investors with your business plan
  • Apply for loan from banks
  • Approach specific investors
  • Raise money from venture capitalists
  • Finance the business from personal finance and sale of properties

14. Choose A Suitable Location For Your Business.

When you start a Jet Ski rental business, the location you pick plays a major role in the success of your business. You will have to consider a number of factors before you can zero in the best location for your jet ski rental business.

Apart from choosing a convenient location, you will also benefit from leasing facilities that you can afford to run your Jet Ski rental.

15. Hire Employees For Your Technical And Manpower Needs.

Starting a Jet Ski rental business doesn’t require much equipment, as the main equipment you’ll need are your Jet Skis. It is not recommended to buy used Jet Skis since they are the primary equipment, as the maintenance costs will be much higher than if they were purchased new.

Since this type of business might make home-based operations impossible, you would need an office space with a large yard to park the Jet Skis. In this way, your clients will see that you take your business seriously.

This business can be run effectively with just 5 to 7 employees. You can be the manager and hire a management staff, front desk staff, accountant, and a security officer. As your business grows, you can hire more people along the way.

16. Write A Marketing Plan Packed With Ideas & Strategies.

A good marketing strategy is crucial for any company to grow and make money. Getting the word out about your products and services makes sure you drive more sales and profit. For a marketing strategy to succeed and turn a profit, it must be able to employ both conventional and unconventional methods.

17. Develop Strategies To Boost Brand Awareness And Create a Corporate Identity.

Your Jet Ski rental business can improve and become a household name in the country if you use the right strategies to boost your brand awareness and create your corporate identity.

If you’re going to start a Jet Ski rental business on a large scale, then these tips might help your brand. Here are some strategies you can use to market your business and boost your brand awareness:

  • Making sure your website promotes your business
  • Using social media like Facebook, Twitter, Instagram, etc., to communicate and offer incentives.
  • Using customer testimonials to get new prospects
  • Using referrals to get new customers and boost brand awareness
  • Sending out mass mailings to get potential customers’ attention
  • Putting your Jet Ski rental business on travel magazines, local newspapers, radio, TV stations, and anywhere else you can spread the word
  • Making the most of online directories
  • Organic forms of lead generation

Frequently Asked Questions

What Are Some Creative Jet Ski Business Ideas?

  • Jet ski manufacturing company
  • Jet skis repairs and service center
  • Offshore jet ski rental services
  • Jet skis sales
  • Inshore/ coastal jet ski rental services
  • Commercial jet ski rental services
  • Tournament jet ski rental services
  • Sale of jet ski related products and tools

What’s It Like To Run A Jet Ski Rental Business?

The rental business is one of the easiest approaches to establishing yourself as an entrepreneur, especially if you cannot afford to go through the hassles of making products from scratch.

Hence, if you are near a beach where people ski, maybe you should consider setting up a Jet Ski rental business.

You can make quite a bit of money from this line of business if you are well positioned, and the truth is that it does take effort to succeed.

Can You Rent Out Your Jet Ski?

Yes, your jet ski can be rented out.

What Does Jet Ski Rental Insurance Cover?

A jet ski rental insurance covers the following:

  • Third-party liability for bodily injury;
  • Pays for the injuries you cause to others due to an accident while running a personal watercraft (PWC)
  • Third-party liability for property damage which covers any damage you cause to the property of others (but not your own).

How Do Jet Skis Make Money?

Below are some of the services that a Jest Ski business provides:

  • Inshore/ coastal jet ski rental services
  • Offshore jet ski rental services
  • Tournament jet ski rental services
  • Commercial jet ski rental services
  • Merchandise sales of jet ski related products and tools

Can You Rent Jet Skis At Lake Tahoe?

Yes, jet skis can be rented in Lake Tahoe but they require drivers licenses for jet ski rentals.

What Kind Of Fuel Do Jet Skis Use?

Premium gasoline and regular unleaded gasoline are usually the type of fuel that jet skis use, depending on the model and manufacturer.

Are Jet Skis Worth It?

They are! Jet skis are smaller and much easier to use than a boat. There are also several tricks it can do that a boat couldn’t such as spinning and flipping. They are cheaper too during winter.

How Long Do Jet Ski Engines Last?

Generally, the 2-stroke jet ski engines can go for approximately 200-300 hours, while the 4-stroke jet ski engines can run for about 300-500 hours. Keep in mind, however, that this depends largely on usage, maintenance, and other factors.

Is A Jet Ski Rental Business Profitable?

It is a very profitable business, but it is dependent on the business owner’s business plan and overall knowledge of the industry.

How Much Does It Cost To Start A Jet Ski Rental Business?

It can start anywhere between $20k to $50k and more, depending on the type of engine, model, and brand.

Why Rent A Myrtle Beach South Carolina Jet Ski?

One of Myrtle Beach’s popular activities is jet skiing. They give you a full orientation about their jet skiing service to ensure your safety. A jet ski in Myrtle Beach can cater to 2 pax for either 30 minutes or 1 hour, depending on how long you want one for. They don’t require reservations.

How Much Does It Really Cost To Own A Jet Ski?

It costs anywhere between $10k to $17.99k depending on the type of engine, model, and brand.

How Much Are Jet Ski Rentals In California?

A jet ski rental in California would be about $100 with an average of $400 daily.

How Much Does It Cost To Make A Jet Ski?

Normally, a brand new jet ski costs around $5k to $20k depending on the style, quality, and features included in the jet ski.

What Age Can You Drive A Jet Ski By Yourself?

Personal jet ski operators should be at least 14 years old. Operator should be at least 15 years old and has ID with education requirements, or 16 years old or older who has a valid motor vehicle driver’s license to run a motorboat that has over 10 hsp-motor.

Should You Buy A Used Jet Ski?

Yes, you can depending on your budget and the existing condition of the jet ski.

How Much Are Jet Ski Rentals In Panama City Beach?

Rental pricing: $60/ half hour or $9/ hour. Each jet ski can accommodate up to 2 people.

Do Jet Skis Lose Value?

Yes, they do. In fact, their value depreciate by 22% during the first year after the purchase, then 8% per year after.

Do You Need A License To Rent A Jet Ski In California?

Yes, but it depends on the age. For motorized vessels operators in California, those who are 35 years old or younger are required to have a California Boater Card. This is need to be able to operate any motorized boat legally.

How Far Can A Jet Ski Go On A Tank Of Gas?

Generally, it can go anywhere between 75-150 miles on a tank of gas. But then again, it depends largely on the jet ski’s performance, fuel capacity, curb weight, and the weather conditions.

Why Are Jet Ski Rentals So Expensive?

It’s because they are designed to withstand daily use on the open water. Other factors include brand, build quality, performance, and special features. A hih-end jet ski would cost around $20k.

How Much Does It Cost To Replace A Jet Ski Engine?

As per SBT, the world’s largest remanufactured watercraft engine supplier, the price ranges are the following:

  • Sea-Doo engine start @ approximately $600 up to $3,000
  • Kawasaki engines start @ approximately $600 up to $2,700

Is 50 Mph Fast For A Jet Ski?

50 Mph is the average speed for a jet ski but is already fast enough for most speed lovers. However, speed can reach up to 70 Mph.

What Is The Most Reliable Jet Ski Brand?

WaveRunner FX is the most reliable brand in the market today, a model designed by Yamaha but isn’t a jet ski technically.

How Many Years Does A Jet Ski Last?

All jet ski manufacturers designed their products to last up to ten years.

How Much Does A 2021 Jet Ski Cost?

Typically, a brand new, low-end jet ski would be around $5k. On the high-end spectrum, it can cost as much as $20k.

How Much Does It Cost To Rent A Jet Ski For A Day?

For a 24-hour period, you can rent a jet ski for about $600. That’s roughly $90 per hour.

Is It Bad To Leave A Jet Ski In The Water?

Not really. A jet ski can stay in the water overnight under unavoidable circumstances, but it is not recommended to leave it longer than that as it may incur damage.

Are Jet Skis Expensive to Maintain?

In a way, yes. On the average, a jet ski runs for 30 hours of riding per year, burning approximately 120-300 gallons of fuel in a year. You can expect to spend up to $600+ every year depending on the current price of the gas. This is besides the maintenance cost that you would also need to spend for.

Is Saltwater Bad For Jet Skis?

Yes. Your PWC can be damaged by saltwater. You need to thoroughly clean your PWC after taking a ride in saltwater.

How Do You Clean A Jet Ski After Salt Water?

After starting the engine of your PWC, let it idle then through the hose, let the water flow. You would need to check your owner’s manual and carefully follow the rest of the instructions there.

How Much Does It Cost To Rent A Waverunner?

The cost varies depending on the location, quality, and other hidden costs. On average, it’s from $80-$100 per hour.

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