Chartering your own boat

[Guest]

I am contemplating purchasing a new boat with a view to offering her up for charter (somewhere hot!) My choice of boat would be something like a Fairline Targa 34 or Sunseeker equivalent built to the required 'coded' standard. I have spoken to a selection of Charter Companies at the London Boat Show and they seem to think that they could offer a good return on investment and actually give me a profit! (they are sales people though!) However, I am keen to learn from anyone who has experience of chartering their own boat and what the non-obvious pitfalls and potential problems might be.

Could anyone offer me advice or point me in the right direction?

Many thanks

Chris

 

[tcm]

I am a bit negative.

i think that chartering a sailboat seems to work better, with a generally more resiliant and renter-proof construction, and indeed the manufacturers themselves anticpate a charter life for many models such as jenneau, bavaria, beneteau etc.

By contrast, mainstream powerboats are built with the owner/driver in mind. They have carpets, flunky loos, and err on the side of more luxury instead of more berths. A fortyish foot "bareboat" sailing yacht would have the option to sleep eight, not six at a push as with a powerboat.

We had a 48-foot targa. This was rented out in Spain at about 6-7 k a week in high summer in Majorca for 3 weeks. We got 4.5k a week. I was unsure about it's certification status, but assured that an application for certification would suffice at least to start. This was all before MCA changes. The boat came back with an extra 50+ hours, and in a fairly unwashed/uncared-for state. Long after the deposit was returned, I noticed scratches and damage arond the hull. Okay, we got 13 grand. But that was in high summer, and of course they really want to use the boat in those July and August months.

Like I say, I'm negative. I think that chartering this kind of boat swaps "newness" for cash - in other words the depreciation is likely to be higher. With the right charterer, it might work, but you can't expect them to wash, pamper and care for the boat as you would do. An older boat, and you may not notice the difference.

Non-bareboat (with a skipper) on bigger boats is a different matter, I think, but even then there'll be higher hours, and many of the really monster rich 50m+ boats aren't available for charter, they say, cos they don't need the money.

Sorry, this isn't what you wanted to hear.

Oh, and one more thing: beware of signing contracts. The standard MYBA is that you get 80%, the main agent get 5%, and whoever sell the charter gets 15%. If your boat isn't available, then all the money is paid back to the charter co, no problem...but if the other charter co isn't your own central agent, the selling broker or agent can insist on their commission being paid regardless. Erk. So you lose the charter fee back to the holidaymaker PLUS have to pay the 15% commission. And of course, the boat needs fixing. Beware if you are asked to sign.

Also ask very carefully about manuafcturers warranty if you charter out the boat - I think that fairline excluded it for year one, but not sure..

 

[Guest]

Matt,

good post. Related question (as you seem to know something about this, or at least you're reasonably opinionated <G>):

What about corporate day charter stuff on the south coast. Noticed WHSmith selling days out on a motor boat round Xmas - 6 people on a Sealine F33 for £250 a head! Nice money if you can get it. So it struck me that if you assume to lose half that or more to agents etc, having someone pay me £600 to spend the day driving my boat round seems like a gas. Even if I do have to be nice to complete morons.

Is it feasible? Thoughts?

 

[JimBOB]

So (tcm) what your saying is that the depreciation on a new boat would be more than the money made from the charter, would it be feasible to buy a used boat with the high end depreciation already out of the equation? or do the charter companies only take on new boats?

I'm sure it also costs about 7K to get a boat to meet all the legal requirements to charter in the UK is this the case in the med?

I think the best way to look at something like this is as long as the loan repayments are met by the charter then be happy, if you make a profit then that's a bonus IMHO

JimBOB

 

[tcm]

Re: ah, you skippering tho?

oh no problem - you driving the boat changes everything. First, you're on board so having a laugh/day out too. Second, of course, you can keep an eye out. Third, it sort of doesn't count if u smack it, even tho if a bareboater did it then naturally, they're stupid raving idiots. Fourth, imho, in uk for a day, they do less damage than with loads of suntan oil all over seats in med. Make sure they have nice jackets, and take spare clothes cos one of them won't have enuf. Need to see the needles, big deal for non-boaties, and stop for beer /lunch at yarmouth and afternoon beers at folly, mebbe tea in osborne bay.

Bit of spare carpet mats to cover over other stuf, show them how to use the bogs, make the rule to shoes off indoors, then get the boat out, find a spare bit of sea and zoom around in circles. And get some spare beer (hiiden) to bring out if oops they've forgotten, or to hide if jesus they've brort lots of beer.

natch you must have lifejackes and raft etc ....dunno the legals in this county , check new MCA regs.

A friend did this and sed he's def do it again. Six dentists, apparently.

 

[claymore]

Hi Chris
I did the paper exercise on this about 15 years ago and decided not to do it. I suppose I was coming from the wrong angle in that it seemed at the time the only way I could afford the kind of boat I would have liked to buy - was to get it to pay for itself or better still, return some profit.
I have the boat I want now - like me its not the youngest model on the pond and I let old and trusted friends use it. Somehow its never the same when I get it back, just daft niggly things really - but some of the people who borrow it are better, more experienced sailors than me - so God knows what it would be like if it was on general charter - I seem to remember thinking that the boat would be paid for after 5 years but by that time it would be so scruffy and beat up that it probably wasn't worth doing. Matts post on this subject is a good one.
regards
John S.