Shared ownership, sometimes referred to as fractional ownership, is a well-accepted method of making big-ticket, luxury recreational products available to a larger group of potential owners. The cost of owning an airplane, yacht or luxury houseboat is prohibitive or impractical for many families or businesses, but shared ownership allows those same groups to share the cost of the asset with a limited number of other owners.
Once a family or business has made the decision to plan a Lake Powell houseboat vacation, they typically have two alternatives: Buy a houseboat or rent a houseboat from a concessionaire on the lake. With the cost of a houseboat ranging from $500,000 to $3,000,000 along with additional annual maintenance and storage costs of approximately $35k, most cannot afford to commit that much money to one vacation option. Renting a houseboat, while much more cost effective for a one-time trip at $5,000 to $15,000 for one week, will usually provide a boat that is well below the quality and luxury expected by most groups. Shared ownership fills the gap between the two options and provides a cost-effective way to have access to a boat that is more luxurious, offers more amenities than a rental boat, and is a fraction of the cost of owning your own houseboat.
When you purchase a share in a luxury houseboat, you are buying a membership unit in a Limited Liability Corporation (LLC). Your membership unit represents a percentage of ownership and makes you responsible for the same percentage of costs associated with the houseboat. The benefit is that those costs are shared among a limited number of owners, providing a very affordable alternative to either renting or owning your own houseboat.
Shared Ownership for Your Business
Increase productivity by bringing the office to paradise. Many business owners use their shares on a Sunrise Peak houseboat at Lake Powell as a way to increase employee productivity, provide corporate retreats and build strong employee relationships.
Frequently Asked Questions
Q: How does shared ownership work?
A: Our customers choose any prime week (3rd week of May to 1st week of Oct.) they would like to have each year. A one time buy-in cost is paid and you are guaranteed that same week on that boat every year. In addition to the week that you own, you have access to “off-season” days as well. Off-season weeks are booked on a first-come/first-serve basis with the Manager of your boat.
Q: What is my actual annual out-of-pocket cost?
A: Your share has an equity value that will depreciate at a rate of approximately 6% per year, so if you purchase a share for $25,000 and want to sell it three years later, it still has a value of approximately $20,000. Sunrise Peak will help you sell the share whether you are moving to a new boat or just need to sell it for whatever reason. Your annual cost to use the boat would look like this:
Depreciation on your share: 6%, let’s say $2,000
Annual Maintenance Fee: $1500 (average annual fee)
Launch & Retrieve Fee: $750 - $1,350 @ Antelope Point
Total Annual Cost: $4,250 – $4,850 plus fuel
Compare that cost with a rental boat that typically costs $8,000 to 13,000 + fuel and does not have nearly the features and amenities of a Sunrise Peak houseboat.
Q: What makes Sunrise Peak different from the competition?
A: Sunrise Peak has over 28 years of experience and has placed over 130 luxury houseboats boats on Lake Powell. All of those boats are still being used on the lake. Our program provides the best houseboats and premium services for the lowest cost. We provide houseboats built by the premiere builder (Adonia Yachts) in the industry and trust the top maintenance (Antelope Point) and management (Lake Point Management) companies to insure that your trip is trouble free.
Q: How much does it cost to buy in?
A: It varies. We have resale shares starting as low as $10K up to shares on brand new houseboats for over $175K. The price of a share is based on the age of the boat, length of the trip, size of houseboat and the time of year that you like to vacation. The average price of a share on a 2-3 year old boat during the peak season would be $50-60K.
Q: How do I reserve a week?
A: A non-refundable deposit of either $10K or $20K will take a new share off the market, with the remaining balance due on a predetermined schedule ... for a resale share, you can make an offer through Sunrise Peak that includes the terms of the purchase. No deposit is required on the purchase of a resale share.
Q: Do we rent houseboats?
A: NO. The concessionaires (Aramark/Antelope Point) are the only entities that are legally authorized to rent boats on Lake Powell. Any other rentals will be impounded by the National Park Service. The limited availability and high price for rental houseboats is one of the reasons shared ownership is so appealing.
Q: How is the boat organized?
A: Each boat is set up as a Limited Liability Corporation (LLC). That corporation holds the title to the houseboat free & clear. Each new owner is issued a membership unit in the corporation to represent their ownership. An annual meeting is held at least once a year to allow owners to review finances of the corporation, vote on resolutions and elect officers.
Q: Can I expect to make money on my investment in a membership unit?
A: No, there should be no expectation of a profit on your membership unit. Your share will depreciate at a rate of approximately 6% per year.
Q: When can I use the houseboat? Do I have set weeks? Off season weeks?
A: The prime time period you purchase is a set block of time that you can plan on every year. Ownership of that prime time share guarantees you access to off-season days, booked first-come, first-serve each year.
Q: When can I book off-season weeks
A: For a new boat, your off-season dates can be booked at the time of purchase for your share. For subsequent years the scheduling opens each December 1st for the next season.
Q: Is this a timeshare?
A: NO. It is different from the typical timeshare in that you own a percentage of one specific houseboat and use the same boat each year. Another difference is that a timeshare can be rented or lent out, your use of your time on the houseboat cannot. Timeshares are not allowed on Lake Powell.
Q: Who takes care of the boats?
A: Antelope Point Marina is the designated maintenance company for our boats on the South end of the lake, they orient the new owners, check owners on and off the houseboats, perform routine maintenance and repairs, etc. The boats we have at Bullfrog are maintained and turned between trips by OffShore Marina.
Q: Which lakes/marinas do we service? Where’s Lake Powell?
A: Currently, we only serve Lake Powell. We have boats at Antelope Point and Bullfrog Marinas. Lake Powell is located on the Utah/Arizona border, about 90% of the lake is in Utah and about 10% is in Arizona.
Q: What kind of houseboats do we sell?
A: All of our boats, up to and including our 2005 models, are Stardust Cruisers. Our 2006-2009 boats are manufactured by Sumerset Houseboats. Our 2010 through 2015 boats were built by Bravada Yachts. Starting in 2016, our new boats are built by Adonia Yachts in St. George, Utah. Each of our boats is custom made specifically for use on Lake Powell and for shared ownership. They are fully equipped with all the comforts of home. Over the years, we have carefully refined the engineering of the boats to precisely reflect the unique needs and wants of Sunrise Peak owners.
Q: Other than the cost of my membership unit, what are my other annual costs?
A: There are two annual costs related to the use of your houseboat: your annual maintenance fee ($1500 - $3000 on average) and the launch & retrieve fee paid directly to the boat management company at Antelope Point or Bullfrog ($750 – $1350 @ Antelope Point / $1500 @ OffShore Marina).
Q: What services are covered by the annual maintenance fee and the launch & retrieve fee? Are there any other costs to be aware of?
A: The annual maintenance fee ($1500/$3000 on average) pays for boat storage (either dry storage or private slip), insurance, license, management, maintenance, etc. The L&R fee pays for your launch & retrieval as well as a full hotel-quality cleaning, holding tank pump out, fuel and water fill service, propane fill, piloting in/out of the slip and staying on the boat the night before your trip on some boats.. The local maintenance companies can also provide additional services like pilot training, boat orientation, additional ice & water, firewood, etc. Your only other cost is fuel for the houseboat and your personal watercraft.
Q: Can I rent/loan my week to a friend/relative?
A: No, a legal, insured owner must be on board any time the boat leaves the marina.
Q: What happens if the owner before me trashes/wrecks the boat?
A: The maintenance crew normally has enough time between owners to make most necessary repairs. Any damage caused by an owner will be billed to that owner and normal wear & tear maintenance will be paid for by the maintenance fund. If an owner continually abuses the houseboat, the boat manager will take action to protect the other owners in the corporation.
Q: What if the boat sinks or is too severely damaged for my trip?
A: There is a small amount of risk that goes along with this purchase. In over 28 years we have never had one of our boats sink. Every once in awhile some unusual damage may occur with a boat, but we are usually able to make repairs in time for the next owner. If the boat is disabled, Sunrise Peak will make every reasonable effort to find an alternative arrangement for your trip.
Q: How many people will the boat sleep? How many people can I have on board?
A: There is sleeping for 10-14 adults or children in beds inside (refer to floor plan for each boat) with 8-12 additional mattresses on the top deck. There is no legal capacity limit on the boat’s, however the National Park Service requires a life jacket on board for each person. The boats are designed to comfortably accommodate 18-24 people.
Q: Is the boat insured? How much coverage?
A: Yes. Full replacement value of the houseboat and $1,000,000 liability coverage with a deductible determined by the value of the boat.
Q: Can I smoke or have pets on board?
A: No pets are allowed inside the cabin (they may be permitted on the outside decks) and smoking is strictly prohibited in the cabin, on the rear deck or near any fuel tanks. Some boats are opting to prohibit pets and smoking completely, but that is determined by the owners.
Q: What is included with the boat? What do I need to bring with me?
A: The boats are stocked with all basic kitchen utensils and appliances, all deck furniture, BBQ, chest freezer as well as all the ropes, anchors, etc. You will need to bring your own bedding, towels and soap on all dry storage boats (although Antelope Point offers linen service as a menu item.) The private slip boats have bedding and linens that are owned by the boat. Upon the purchase of a share you will receive a ‘Help Manual’ that has a detailed list of everything stocked on the boat and some suggested items for you to bring.
Q: Does the boat have Air Conditioning/Heating?
A: Yes. Every boat has a 3-5 ton central air and heat unit … more than enough cooling/heating for the area in each boat.
Q: How do you anchor/beach the boat?
A: You softly nudge the nose of the houseboat onto the sand at a 90* angle, then run 2 anchor lines off each side at about a 45* angle and 2 anchor lines off the nose of the boat to keep the front stable. The six anchors should be completely buried on the beach for maximum stability. Refer to the ‘Help Manual’ for more details.
Q: Can I drive from on top? What is a flying bridge?
A: Yes. The boat is equipped with a fully-functional secondary helm which allows you to drive the boat from the top deck. Control of the helm and engines can shift easily from the captains position located inside the cabin to the top deck helm.
Q: Can I trade weeks with another owner?
A: Yes. That is between you and the other owners on the boat, and it is okay as long as there is an insured owner on record of that boat on board.