spillemw
Member
I am thinking of financing my new boat by renting it out. I don't have the time anyway to use it 100%. Does anyone have any experience with that?
Business case for renting out a new yacht
- Thread starter spillemw
- Start date
sailorman
Well-Known Member
the dealer will have all the knowledge you need to arrange to charter her out
sarabande
Well-Known Member
there are all kinds of legislative mazes you have to run through before chartering out your boat.
The RYA has some pages of advice, starting here
https://www.rya.org.uk/Pages/Login.aspx?ReturnURL=/infoadvice/legaladvice/Pages/CharteringaBoat.aspx
and here
http://www.rya.org.uk/infoadvice/regssafety/commercialcraftregs/Pages/mcacodes.aspx
The Marine and Coastguard Agency is another port of call to help with info about coding for charter.
http://www.mcga.gov.uk/c4mca/mcga07-home
The RYA has some pages of advice, starting here
https://www.rya.org.uk/Pages/Login.aspx?ReturnURL=/infoadvice/legaladvice/Pages/CharteringaBoat.aspx
and here
http://www.rya.org.uk/infoadvice/regssafety/commercialcraftregs/Pages/mcacodes.aspx
The Marine and Coastguard Agency is another port of call to help with info about coding for charter.
http://www.mcga.gov.uk/c4mca/mcga07-home
tudorsailor
Well-Known Member
Be aware that chartering is unlikely to actually make a profit. Do you have another business? If you do there are tax advantages to chartering and making a loss!
Where do you intend to keep the boat? Ours is in Spain and there are more hoops to go through in addition to British MCA coding
We did the coding through MECAL who act as an agent for the MCA
If you want to know more of our experience, feel free to PM me
TudorSailor
emsworthy
Well-Known Member
A friend of mine has a business that does just that and, although I am obviously biased, as part of the arrangement he will also look after you boat better than you can if you wish! Most of his owners in guardiennage charter as well and vice versa.
http://www.universalyachting.com/
Even if you don't go with him eventually I'm sure he will happily talk to you about how it might work. As a previous poster pointed out, if you have other businesses there may be some favourable tax advantages.
Hope this helps.
Tim
http://www.universalyachting.com/
Even if you don't go with him eventually I'm sure he will happily talk to you about how it might work. As a previous poster pointed out, if you have other businesses there may be some favourable tax advantages.
Hope this helps.
Tim
Tranona
Well-Known Member
As already indicated there are firms who specialise in managing boats in this way and it is best to work with them. Owning your own boat and trying to manage and charter it yourself is usually not worth it. It is a very competitive market and generating enough business to justify the costs is not easy. You will also have difficulty in persuading HMRC that it is a business so reclaiming VAT (and then charging VAT). If they do accept it as a business you may then be charged benefit in kind for the time you use it. Operating a single boat is unlikely to produce a profit nor any long term return.
From the boat point of view you will also find the costs of maintenance and replacements will be high as the boat has to be ready ever time you have a booking. Usually charter boats are based in expensive marinas because that is where the potential market is. When the boat comes to the end of its useful life as a charter boat - usually 3-6 years it may well have a lower value than a private boat.
An alternative which has been traditionally more attractive is the ownership schemes run by all the big charter companies, particularly in the eastern Med. These give the advantage of boat usage in nice warm sunny places often with a choice of trying different areas and usually the boats have an easier life than in northern waters. However, the fall in the value of sterling and difficulty in selling the boat at the end of the term has made it less attractive. It does still have attractions if your long term ambition is to own a boat in the location, for example preparing for retirement.
From the boat point of view you will also find the costs of maintenance and replacements will be high as the boat has to be ready ever time you have a booking. Usually charter boats are based in expensive marinas because that is where the potential market is. When the boat comes to the end of its useful life as a charter boat - usually 3-6 years it may well have a lower value than a private boat.
An alternative which has been traditionally more attractive is the ownership schemes run by all the big charter companies, particularly in the eastern Med. These give the advantage of boat usage in nice warm sunny places often with a choice of trying different areas and usually the boats have an easier life than in northern waters. However, the fall in the value of sterling and difficulty in selling the boat at the end of the term has made it less attractive. It does still have attractions if your long term ambition is to own a boat in the location, for example preparing for retirement.
Doug_Stormforce
Well-Known Member
Can't speak for other parts of the world but can certainly talk you through the ups and downs here in the UK. 02380 231122
