Chartering out your boat - how?

[jonnybuoy]

I am seriously considering the purchase of a new boat in the 40-50ft category. Given that there is a limit on the amount of time I could use it, I got to wondering whether there was a market for chartering in out to help pay for a bit of the financing costs. I appreciate that the boat would need to be spec'd appropriately. Boat would be based Poole harbour. Having looked on the internet there doesn't seem to be much of a south coast charter market which is making me wonder if one even exists. Presumably if it was easy there would be a lot of people happy to do it.

Does anyone have any experience in this area or have any suggestions?

Jon.

 

[Nautibusiness]

Simple fact:
Don't expect to make money from chartering.
You may cover "some" of your costs, but you will be dissiluusioned if you expect to cover all your costs or even make money.

Up until 2007/08 a lot of people bought 42 to 50ish foot boats with a view to covering much or all of their costs through chartering.
The reason you can't find much of a fleet today is because most of those boats have sold up. Many owners who bought them couldn't really afford them without some charter income and when they only got two or three bookings (if that) per year the boat had to go.

There are still a couple of operators knocking about. A few in Poole harbour.
Those that are still there are usually offering more than just a charter boat. Maybe tuition too?

By all means do it if you can afford the boat anyway. Then if it doesn't really take off at least you have a beautiful boat of your own.

There are also some technicalities to be aware of.
I've not owned a charter boat so I am only going on hearsay, but I believe you are expected to pay a charter fee to use your own boat, just like any other customer.
Sure, you can recover the VAT, but expect to pay a fair wack to get a boat coded too.
Try and offer something over and above a day out on a gin palace. Believe me, most things have been tried. Get good food and drink for your guests, curly cucmber sandwiches don't cut it if they have just paid £2,000+ for a day out.

Good luck

 

[Nick_H]

I am seriously considering the purchase of a new boat in the 40-50ft category. Given that there is a limit on the amount of time I could use it, I got to wondering whether there was a market for chartering in out to help pay for a bit of the financing costs. I appreciate that the boat would need to be spec'd appropriately. Boat would be based Poole harbour. Having looked on the internet there doesn't seem to be much of a south coast charter market which is making me wonder if one even exists. Presumably if it was easy there would be a lot of people happy to do it.

Does anyone have any experience in this area or have any suggestions?

Jon.

Have you considered a boat share instead, that's another way to reduce your costs if your usage is low.

 

[PEJ]

Are you planning on chartering it as an individual or as a new company or as a part of an existing company? Are you going to VAT register?

Also are you planning to get the charters in yourself or make it available to existing charter companies?

How much as a percentage will be private use and how many actual days of private use?

The answer to these questions will determine the best way to go forward and, believe me, you better have the answers before your go trying to reclaim VAT!

Take lots of advice on the financial side BEFORE you buy the boat.

Peter (speaking from bitter experience!)

 

[jonnybuoy]

Thank you all.
Nautibiz ability to do this or not would not affect my decision, so to an extent it is idle curiosity (but if it's poss why not).
Nick H: yes have looked at sharing options. Doesn't float my boat (excuse pun) as for various reasons have difficulty planning too far ahead
PEJ: sounds like an interesting story. I'd be an individual looking for a 3rd party co to manage. VAT wasn't a driver more the possibility of earning a few bob. I have always assumed avoiding VAT was a very tricky exercise indeed especially seeing how much dosh HMRC need now..

 

[Perry]

More chance of getting a decent amount of charters if it was based on the Hamble, have a chat with Hamble Point Yacht Charters.

 

[Solitaire]

I am seriously considering the purchase of a new boat in the 40-50ft category. Given that there is a limit on the amount of time I could use it, I got to wondering whether there was a market for chartering in out to help pay for a bit of the financing costs. I appreciate that the boat would need to be spec'd appropriately. Boat would be based Poole harbour. Having looked on the internet there doesn't seem to be much of a south coast charter market which is making me wonder if one even exists. Presumably if it was easy there would be a lot of people happy to do it.

Does anyone have any experience in this area or have any suggestions?

Jon.

It will cost in the region of £8-£10k to code a boat of the size you are looking at. In addition to the inspections and hull survey (even if the boat is new) you also have to pay for all the required kit and have any modifications done to the boat, raising of guard rails etc etc. If you want chapter and verse then pm me. we code motor boats on a regular basis. But again, as others have said it's about offsetting costs, not making money. There are a lot of boats around and prices are keen plus the corporate hospitality market is not as buoyant as it once was.

There is a market,but it is small and at the moment, people are tending to stick with boats they know.

 

[jfm]

It will cost in the region of £8-£10k to code a boat of the size you are looking at.

I agree it could cost that Solitaire but I wouldn't agree it need cost that. If you start from the premise you'll be equipping a 50er with one LR and say 10LJs anyway, even if you dont code it, the incremental cost of coding it for an owner who takes some control of the project him/herself could be more like £3500 inc surveyor's fees. It all depends on whether the whole job is outsourced, or managed in house by a hands-on knowledgeable owner

 

[Solitaire]

I agree it could cost that Solitaire but I wouldn't agree it need cost that. If you start from the premise you'll be equipping a 50er with one LR and say 10LJs anyway, even if you dont code it, the incremental cost of coding it for an owner who takes some control of the project him/herself could be more like £3500 inc surveyor's fees. It all depends on whether the whole job is outsourced, or managed in house by a hands-on knowledgeable owner

Agree with that, but you are the exception. How many times have you done it now? You have your operations manual down pat I would suggest.