Wow, Michael. Your wife is pushing for you to put it in a flight school?
I bought my 152, which, at the time, was a stretch on our budget. I bought it with the sole intent of putting it into a flight school. Since I was a mechanic, I felt that I could keep up with the maintenance by myself, and could not only save money in the process, but might also make a small profit. Sounds like the way you're thinking right now.
The terms of a leaseback agreement are as varied as there are leasback operators. The NUMBER ONE key thing is to go into business with an operator that YOU ABSOLUTELY TRUST!!!!!!!!!!!! If you are suspicious of ANYTHING they do, don't enter into the agreement.
Insurance is very high for rental planes. Typically, the FBO takes 20 percent off the top of your revenues for their commission. Then, they deduct what they pay to have your plane insured, between 4 and 7 hundred dollars each month. Then, if they're having to lease tiedown space for your plane, you'll likely have to pay that, as well. Then, they subtract what fuel has been charged to your plane, sometimes adding a nickel per gallon fee.
So....as you can see, if your plane doesn't fly around 25-30 hours per month, you could end up owing the flight school money.
If you ever do go the leaseback route (it's not a bad investment with the proper precautions) make sure every detail is written down. When the crap hits the fan, people get amnesia real fast. If you'll be paying for the maintenance, remember oil changes will come almost bi-weekly, you'll have to keep up with your spark plugs (buy a second set), otherwise you'll end up missing flights due to rough mag checks. 152's are prone to fouling plugs, particularly with student renters unless you use the right plugs. Even then, you'll want to clean the plugs (swap out with your spare set) every 25 hours.
100 hour inspections come around and are a little more expensive on a 152 because the valve clearance has to be checked/adjusted every time. No one will take care of your plane the way you would. It's hard to dote on your "baby" on Tuesday, then by Friday, there's empty coke cans, coffee cups, oily paper towells, and oil bottles strewn all over your plane. Your windscreen will be scratched by people throwing headsets and clipboards on the glareshield. Your interior will be soiled by people walking across the ramp and dragging everything on their shoes into your plane.
But....let's say you're okay with all of that.
Prepare to be named in a lawsuit when someone crashes your plane and they die. If you can't handle that, don't do it.
Be prepared to cover the FBO's fixed expenses (insurance, tiedowns or hangar storage) in the event someone wheel barrow's down the runway, buckling your firewall, ripping out the nose gear, and trashes the propeller and engine. Sure, that's an insurance claim, but the other costs don't stop.
So, you're still going at it? Still want to leaseback your plane that you don't really have to? It's your call. It can be profitable if done carefully. Just remember, the first to be rented are the cleanest, best equipped planes. It will dramatically help if you stay after keeping your plane clean, wiped down inside and out. Good luck with your decision.
I'll find a picture of my 152 in the ravine with the tail folded up against the left wing for ya. It's a real tear-jerker...
In other words: Here endith the lesson.
These arrangements are not for the faint of heart.
Jim
