What do you think of when you hear the word “income?” If you are like most people, you think “making money.” However, when it comes to “charter income,” if you want to truly understand a charter income strategy, and get the most out of putting your motor yacht into a charter fleet, you have to think of “income,” as less about “earning money,” as it is about offsetting expenses.
That is because with a few rare exceptions where people will purchase a yacht strictly for the idea of starting a charter business, most charter income programs are designed not to make you additional “income,” but to help defray many of the operational costs of owning a luxury motor yacht!
The key to charter income programs is that they provide options and a level of flexibility that can make yacht ownership a lot more fun, and hassle free. This is particularly true when you can combine a charter income program with a state-of-the-art yacht management solution such as our own On Demand Yachting.
What Expenses Can be Offset?
Generally speaking, once you put your motor yacht into a charter fleet you can expect that the charter management company will take care of most, if not all of your yacht’s “everyday” operating expenses, including: insurance, dockage, and maintenance. In addition, programs like Florida Yacht Management’s offer “offsetting credits” for maintenance and repair work done to your yacht. Either way, once you have agreed to enter into a charter income program, you should expect to pay little or nothing towards the routine operating costs of the vessel for the duration of your contract. That alone can save you as much as 70% of your annual operating costs!
Other Advantages of a Charter Program
In addition to offsetting your operating and maintenance costs, there are other advantages of placing your motor yacht into a charter fleet.
- You may also gain tax advantages, saving your more money.
- You will know your yacht will be safe, secure, and well maintained.
- Your engines and other critical systems will be used more often, which can actually extend their life.
- When you want to sell your boat, charter gives you great exposure, and “try it before you buy it” opportunities.
If you enter into a yacht charter management program with the mindset that it is not a “business venture” but a way to reduce the expenses of owning a motor yacht, as well as broadening your own usage possibilities, you will come to realize what a great opportunity it really is!
Operating a motor yacht can be costly. Putting your boat in Charter can earn income, and defray some of the costs of ownership. On Demand Yachting from FYM can show you how. If you would like to learn more, or if you have any questions or comments about this blog post, do not hesitate to contact our Yacht Management specialists, or call us at (954) 900-9968.