What Should I Charge?

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DHopkins

Filing Flight Plan
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Oct 4, 2017
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DHopkins
I have a very low time 1979 P28A/181 Archer II, mint condition, that I have seriously upgraded avionics-wise last two years. Includes GTN 650, ADS-B, S-Tec 30 Autopilot w/altitude hold, new CDIs, the works. I am IFR qualified and everything works great! I have an acquaintance who is beginning his IFR training in his own non-IFR capable C172. Instructor usually spends first 20 air hours or so with simply honing basics of flying, before going on to more complex maneuvers requiring any sophisticated instrumentation. Acquaintance has asked if he can use my plane when it's time to start learning what is beyond his C172's capability. He's checked out in my plane for VFR flights. My question is what's a reasonable hourly rate to charge? Nearest big flight school charges about $120/hr wet. I don't want to be a jerk and charge an arm & leg, but I have dropped some serious coin in recent upgrades. Any suggestions? Thanks in advance.
 
I would say 100 per hour is reasonable. The first 50 is going towards gas, 20 in the piggy for engine overhaul, 20 towards annual, and 10 for other expenses. Truth be told your upgrades were only for your benefit and don't increase the value of the airplane nearly as much as you spent on them. This would be the friend discount, if a none friend then I would as 120 just like the flight school.
 
What you've paid for upgrades is fairly irrelevant. That's 'your' problem, not the renters. Charge at least what the 'nearest big flight school' charges, or give him the friend rate, since it sounds like you let him fly your plane anyway
 
Where is the plane.

I'd say 110hr in bum**** nowhere

210hr in SFO or NYC
 
Plane is located in Escanaba, MI. 'Da U.P. eh?
 
wayne said:
What does your insurance policy say about renting the plane out? It's all good until something gets bent and then it comes out that it was being rented and ....
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This. Before determining an hourly rate, check the insurance policy on the plane first. Might be worth looking at the CFI’s policy as well.
 
Ryanb said:
This. Before determining an hourly rate, check the insurance policy on the plane first. Might be worth looking at the CFI’s policy as well.
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Yes, thank you. Insurance is all good, for both student and instructor. I made student carry own policy for my plane when I first allowed him to fly it VFR. My insurance agent agreed with how all is set up.
 
I'd charge whatever the going rate in your area is for a similar airplane. You didn't buy a plane or upgrade it to subsidize your friend's flying hobby so why should he pay any less to fly your plane than he would to fly someone else's rental airplane?
 
DHopkins said:
Yes, thank you. Insurance is all good, for both student and instructor. I made student carry own policy for my plane when I first allowed him to fly it VFR. My insurance agent agreed with how all is set up.
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Your agent also agreed that rental fees are acceptable under your coverage?
 
Ok....I'd charge $5/hr more than a nice 172....cause of the upgraded avionics. ;)
 
I have a 180hp PA28-151 w/ G430, so not as well equipped and I get $125/hr in SoDak. I would think $135/hr would be reasonable considering the equipment. If you want no profit, just enough to operate it and keep reserve money I'd say you could go down a few bucks but I wouldn't go below $115-$120/hr. Gotta make sure all your expenses including fixed expenses, operating expenses and maintenance expenses are covered.
 
DHopkins said:
I have a very low time 1979 P28A/181 Archer II, mint condition, that I have seriously upgraded avionics-wise last two years. Includes GTN 650, ADS-B, S-Tec 30 Autopilot w/altitude hold, new CDIs, the works. I am IFR qualified and everything works great! I have an acquaintance who is beginning his IFR training in his own non-IFR capable C172. Instructor usually spends first 20 air hours or so with simply honing basics of flying, before going on to more complex maneuvers requiring any sophisticated instrumentation. Acquaintance has asked if he can use my plane when it's time to start learning what is beyond his C172's capability. He's checked out in my plane for VFR flights. My question is what's a reasonable hourly rate to charge? Nearest big flight school charges about $120/hr wet. I don't want to be a jerk and charge an arm & leg, but I have dropped some serious coin in recent upgrades. Any suggestions? Thanks in advance.
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20 hours? He should find a new instructor...

Many insurance policies only allow "direct" operating costs from non-named pilots (that is, you can't charge them for anything apart from fuel). Make sure your insurance is valid, non-owned policies don't cover everything (if you hit a deer on a runway, non-owned won't cover it and if your insurance policy has a limitation for what you can charge as rent, your policy won't cover it either).
 
What's missing from the friend's 172 that he can't complete his instrument rating training in it?
 
DHopkins said:
I have a very low time 1979 P28A/181 Archer II, mint condition, that I have seriously upgraded avionics-wise last two years. Includes GTN 650, ADS-B, S-Tec 30 Autopilot w/altitude hold, new CDIs, the works. I am IFR qualified and everything works great! I have an acquaintance who is beginning his IFR training in his own non-IFR capable C172. Instructor usually spends first 20 air hours or so with simply honing basics of flying, before going on to more complex maneuvers requiring any sophisticated instrumentation. Acquaintance has asked if he can use my plane when it's time to start learning what is beyond his C172's capability. He's checked out in my plane for VFR flights. My question is what's a reasonable hourly rate to charge? Nearest big flight school charges about $120/hr wet. I don't want to be a jerk and charge an arm & leg, but I have dropped some serious coin in recent upgrades. Any suggestions? Thanks in advance.
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You could charge a dry rate
 
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