You've finally made a lifetime decision of being owner of the boat and you've  realized that the simplest way to truly enjoy your boat would be if someone takes care of the boat.  Charter management program seems to be the right solution for you just, but there are many programs on the market and you simply do not know which one would be right for you. Since it's all about the lifetime investment and the amount of money involved into it, what you're interested in is a contract you need to look more closely at, aren't you? So, we're offering you some tips you should pay attention to and what are the key things when signing a charter contract.

1. Duration of the contract- the charter contract goal is to allow you to fund the vessel, ie the return on the investment within a certain timeframe. The Charter management program enables you to become the yacht owner with the ability to return the investment normally within 6-8 years. You should definitely check if the charter company offers you the option of expanding the contract and under which circumstances. The extension of the contract can serve as a kind of guarantee that your boat will be taken care of with sufficient care so that even after the contract expires, the boat is good for booking and demanding charter guests. In case a charter company takes good care about the boat, it will not be a problem to extend the contract for an additional period of time.
2. Costs- Charter companies usually offer a share of value of signed charter contracts and it usually goes 70% in Your favour and 30% in favour of your charter company. Besides, some of the charter companies offer the possibility of contracting a fixed part of the cost. Don't rush, because, at first sight, the cheapest option can turn out to be the most expensive one. You should study offered conditions very well because with your profit you'll pay the cost of marina's berth and the cost of obligatory insurance. And there are also unforeseen costs like various subcontractors and service providers. Not even to mention spare parts. You should check what's included in the maintenance price, look for the exact specifications of the works involved, check all the costs covered by the contract, and ask for a description of possible additional costs. Each charter company with long-term experience can easily predict all possible costs, depending on the type of vessel.
3. Charter company's obligations- see charter company's contract in details. Which of the costs and works on the vessel is the company obliged to perform on an annual basis? Usually, charter companies cover the costs of marketing, booking, operations and business operations at the base. Don't fool yourselves that company is costless. Charter companies that have well-filled booking lists will normally make their income calculations depending on the planned number of rentals that are scheduled to be made. In order to fill out these weeks, charter companies have to have an extremely good agents' network and their own channels of selling which altogether costs a lot. After all, there is professional staff which takes care of both boats and guests.

4.    Using a boat for your own needs – check out if you have the opportunity and for how long to use your boat during the year. Some charter companies offer you the option of using the boats in each season, but in order to have a better income, they will give you the opportunity to use the boat during off-season. You should be able to decide when you can use your boat and what it takes with it. You have to be aware that so-called ownership weeks are legally unauthorized because the owner of the vessel is a legal person, not a physical one. Each charter company has its own solution in this situation, but in any case, it is unlikely that you will use your boat at no cost. The crew list holder is always a charter company, and it carries all responsibility.

5.    Exit of Charter Management Programme - this part of the contract is very important because it allows you to know exactly what you will do with the boat after the contract expires and how you will manage it further on. Regardless of your choice, a charter company should offer you the ability to sell a vessel or continue to use it for your own needs. But also, in both cases, you should take care of the boat's preparation. As well as getting back all the equipment you've been getting on a boat over the years.

6.    Reporting - Check how you can track what's happening with your boat. With true, professional charter companies it is easy to access online to your boat's ‘’health card’’. This means that at any time you know which parts on the boat are replaced, what is repaired and how many weeks your boat is booked. In this way, you will have an insight into your investment and easily calculate the cash flow, but also be able to plan your vacation on the boat.

All these details differ from one charter company to another. Be careful while choosing a business partner because you don't want something that you've been dreaming of for years to become a nightmare. Check out all the details and of course, ask all you want to know the existing boat owners who have charter management vessels because a good recommendation is worth it. If you want to check the specific contract and terms that our charter company gives you with favourable charter management fees and other advantages, contact us on our web site or send us an e-mail on katarina@euronautic.hr.