Any experience including Golf Carts?

[Andrew Steffens]

Good afternoon!

I have a client closing on a $2M+ waterfront property in a golf cart friendly community.  Does anyone have experience renting one with their units?  He is concerned with liability.  Thank you!

[Michael Baum]

Hey @Andrew Steffens, this is an interesting question. Golf carts kinda fall into that category of bikes, kayaks and boats.

I did a quick search and there are plenty of insurers that offer golf cart liability insurance.

https://www.insurance.com/other-insurance/golf-cart-insuranc...

It seems to be pretty cheap. Also, I would look at golf cart towing in the area. That seems to be a thing actually which I guess isn't surprising.

People don't charge them up and get stuck somewhere...

If the community is centered around golf carts for getting around, it seems like an amenity that should be provided.

Have you looked at other places in that community to see if they are offering carts?

[Annie Seurer]

Quote from @Andrew Steffens:

Good afternoon!

I have a client closing on a $2M+ waterfront property in a golf cart friendly community.  Does anyone have experience renting one with their units?  He is concerned with liability.  Thank you!

We had one in the Pandhandle, but it was street legal. We actually leased from a vendor and offered as ancillary revenue to Guests. Guests had to sign an extensive waiver before arrival. We had rules posted everywhere and there were definitely still issues. Expect calls often - it was nice with the lease as the company handled maintenance and issues 24/7, and it was definitely needed. We looked into purchasing the carts ourselves but insurance was difficult if you didn't have a fleet and general did not cover. 

I'm guessing if it's not street legal, it's likely much easier to get insurance, etc. 

[Andrew Steffens]

Quote from @Annie Seurer:

Quote from @Andrew Steffens:

Good afternoon!

I have a client closing on a $2M+ waterfront property in a golf cart friendly community.  Does anyone have experience renting one with their units?  He is concerned with liability.  Thank you!

We had one in the Pandhandle, but it was street legal. We actually leased from a vendor and offered as ancillary revenue to Guests. Guests had to sign an extensive waiver before arrival. We had rules posted everywhere and there were definitely still issues. Expect calls often - it was nice with the lease as the company handled maintenance and issues 24/7, and it was definitely needed. We looked into purchasing the carts ourselves but insurance was difficult if you didn't have a fleet and general did not cover. 

I'm guessing if it's not street legal, it's likely much easier to get insurance, etc. 

 Thanks Annie!  Yes it is street legal but the owner lives in NJ and it will have to be registered and insured in FL so it is a headache

[Annie Seurer]

Quote from @Andrew Steffens:

Quote from @Annie Seurer:

Quote from @Andrew Steffens:

Good afternoon!

I have a client closing on a $2M+ waterfront property in a golf cart friendly community.  Does anyone have experience renting one with their units?  He is concerned with liability.  Thank you!

We had one in the Pandhandle, but it was street legal. We actually leased from a vendor and offered as ancillary revenue to Guests. Guests had to sign an extensive waiver before arrival. We had rules posted everywhere and there were definitely still issues. Expect calls often - it was nice with the lease as the company handled maintenance and issues 24/7, and it was definitely needed. We looked into purchasing the carts ourselves but insurance was difficult if you didn't have a fleet and general did not cover. 

I'm guessing if it's not street legal, it's likely much easier to get insurance, etc. 

 Thanks Annie!  Yes it is street legal but the owner lives in NJ and it will have to be registered and insured in FL so it is a headache

 I don't think we would have done it without the vendor servicing it, taking calls 24/7, and handling insurance. Another option would be to partner with a local vendor - we did that a lot and would make 10% commission. 

[Nathan M kiefer]

Depending on the area. We have two strs both rented carts but the security in our area will remove your ability to have a cart for 5 years if you get two tickets.

the liability isnt much of anything - we use progressive or State farm. We had someone get a ticket and pulled the carts for the rentals, probably cost us between 5-10% of total revenue but it was more important for us to keep our carts than not have them for an extended period.

$2 mm house or not you will have headaches with carts regardless and in our experience it's just not worth the hassle.

my recommendation is work a deal with a local place you can refer them to and get a small referral fee from. In our resort the resort owns the golf cart company so you can read through the lines there

[Andrew Steffens]

Quote from @Nathan M kiefer:

Depending on the area. We have two strs both rented carts but the security in our area will remove your ability to have a cart for 5 years if you get two tickets.

the liability isnt much of anything - we use progressive or State farm. We had someone get a ticket and pulled the carts for the rentals, probably cost us between 5-10% of total revenue but it was more important for us to keep our carts than not have them for an extended period.

$2 mm house or not you will have headaches with carts regardless and in our experience it's just not worth the hassle.

my recommendation is work a deal with a local place you can refer them to and get a small referral fee from. In our resort the resort owns the golf cart company so you can read through the lines there

 Ugh the problem is everyone else at this price point includes it and I fear that not having it will affect bookings

[Jay Hinrichs]

Quote from @Andrew Steffens:

Quote from @Nathan M kiefer:

Depending on the area. We have two strs both rented carts but the security in our area will remove your ability to have a cart for 5 years if you get two tickets.

the liability isnt much of anything - we use progressive or State farm. We had someone get a ticket and pulled the carts for the rentals, probably cost us between 5-10% of total revenue but it was more important for us to keep our carts than not have them for an extended period.

$2 mm house or not you will have headaches with carts regardless and in our experience it's just not worth the hassle.

my recommendation is work a deal with a local place you can refer them to and get a small referral fee from. In our resort the resort owns the golf cart company so you can read through the lines there

 Ugh the problem is everyone else at this price point includes it and I fear that not having it will affect bookings

My self I would never do this.. I lived at a Golf course community in the Napa Valley for years and we all had golf carts. And members crashed them occasionally a couple went into the ponds and some broken feet ( dragging their feet) but to me if you have guest and they let a teen on them with little to no experience if they hit something or someone they could really do some damage so based on my experince with them I would never do this personally.

[Nathan M kiefer]

Do what we did, give it a year and if it ends up being good keep it. If it does what ours does then you can make a decision. 

our two houses are about 1.5mm together - maybe with a $2mm house you will have a little more responsible guests but I doubt it as there is always one person that screws it for everyone.

fortunately for us, the dip in income didn't impact us because we bought with cash but if they have that pressure it may make a difference 

[Sarah Kensinger]

I know liability is a huge concern with golf carts, especially since you don't know who is going to be driving it. Most STR hosts just team up with a local vender and offer a discount to guests, then they can just rent a golf cart from a company that is set up for it.

[Collin Hays]

I can see the benefit of offering it, but my goodness the liability. Your biggest risk is kids commandeering the thing while mom and dad are in the hot tub,and running over and killing someone(s).  

[Jay Hinrichs]

Quote from @Collin H.:

I can see the benefit of offering it, but my goodness the liability. Your biggest risk is kids commandeering the thing while mom and dad are in the hot tub,and running over and killing someone(s).  

Especially the new models that are very fast very heavy.. etc..just a disaster waiting to happen.

[Andrew Steffens]

I agree but it is (although waterfront) about a 10+ min walk to the beach and all of the competition has it included unfortunately.

[Collin Hays]

Quote from @Andrew Steffens:

I agree but it is (although waterfront) about a 10+ min walk to the beach and all of the competition has it included unfortunately.

 Yeah, if you have to provide one, you know the drill...get a really good liability policy. I could see a multi $ million claim on one of those things in a resort-type setting. 

[Andrew Steffens]

Quote from @Collin H.:

Quote from @Andrew Steffens:

I agree but it is (although waterfront) about a 10+ min walk to the beach and all of the competition has it included unfortunately.

 Yeah, if you have to provide one, you know the drill...get a really good liability policy. I could see a multi $ million claim on one of those things in a resort-type setting. 

 I am not touching it personally, trying to help a client. I have a $5M liability as the manager.  I guess he will just have to do the same.