Yacht charter management is a good way to reduce costs of owning a boat, so if you think about buying a boat, take into consideration putting it into charter to work for you when you are not using it. Charter management program makes your dream of having your own vessel come true, but there are different types of management programs offered by the charter industry so be sure that you’ll get what you expect.

Charter management program is a business model which allows a potential owner to buy a new boat with the lowest possible initial investment and with return of investment in 6 to 10 years period. During that period the expenses (maintenance, insurance, berth in marina etc.) are to be paid from the charter revenue.

But, before you start with this project take into consideration few things:

What do you want? First of all figure out what you want, as well as what you don’t want. Generally, when buying a boat be honest with yourself. Answer on a simple questions like: What do I really want from this boat? How many days will I actually be able to spend on it? Do I have enough time and technical knowledge for the maintenance of this boat? Where will my new boat be placed?

According to these honestly answered questions you may proceed on the step two:

Financial models of your options. Even though most of management companies will provide you with models, it is important that you have and understand your own model. Consider each factor that can make an impact on the outcome of the model, and manipulate the assumptions that are relevant to you. The decision  about what will you do with your boat after ending of the programme is very important. Whether you’ll sell the boat or keep it, the final outcome will be slightly different.

The most common model in Croatia is “bareboat” charter ownership of boats mostly of the 32-55ft range. Select a vessel or a form of cooperation that meets your needs and expectations. If you really want to maximize income, then you can select a very popular boat in a very popular cruising region such as Kornati area in Croatia. For example 4 cabins sailing boat that are popular brands like Bavaria Yachts, Jeanneau, Hanse Boats, Beneteau, suitable for 8 – 10 people and very easy to handle will be a good choice. Talk to a charter management company, and don't try to do it cheap - the boat itself needs to be attractive to customers, well equipped, clean, easy to run.

Track your boat! When you figured out what is the best choice for you, be sure that you will be able to track your boat during charter management program. To make it a successful experience, we recommend that the yacht owner is informed and involved in the management of their boat. It will be good to have a log-in system, where the owner can check the booking list from the comfort of his home, or to track the details on the work completed on the boat. It is important to have a sales report with all relevant information included (the selling price, discounts, commission, and so forth).

Now we come to the important part of this deal.

Personal use. Clarify with the management company how much, when and in what terms you will be able to use your boat for your personal purpose. The economics of charter ownership means you will be chartering for less than standard rates. This is a lot of savings when you charter 2-3 times per year for 5 years. Also, take into consideration the quality time with your friends and family. During the next five years, you will be able to invite your friends and family to join you on your boat.

Finally, there are benefits of charter ownership but it is definitely not for everyone.

We suggest you also to consult with some current and past owners and we know that their feedback is almost universally positive. From these conversations, you will learn that if you manage your expectations well, do your homework, and know what you are getting into, you will likely have a very positive experience.

For more details about our charter management programs contact us by filling up the form below