Placing your luxury motor yacht in one of our charter income programs has proven time and again to be a great way to manage your boat, while at the same time, off-set the many expenses of yacht ownership. However, before you consider such a move, undoubtedly you have many questions about owning a charter yacht. Here in no particular order are some of the most common questions we get from luxury yacht owners about placing their vessels in our charter fleet.
- How often can I use my yacht? As an owner of a yacht in our charter program, you do not give up a thing! She is still your boat and you can use her as often as you like. We just need to know when you are not planning on using the yacht, so we will know when she will be available and can book charters around your schedule.
- How much does it cost to add a charter endorsement to my insurance policy? This depends, of course, on your existing policy, but the cost to add up to 12 charters a year, is typically modest. Any insurance cost increase will be covered by your charter income. That is one of the beauties of the program. In fact, the cost of adding the charter endorsement is likely to be less than half of what your net proceeds will be for your first charter!
- Can I decide what type of charters I want to have take place on my boat? Absolutely! Again you’re the boss! Some of our clients only want to make their yachts available for long-term charters, while others only want day charters. Some will make their yachts available for parties or special events, other owners may not want to do that at all – or rule out certain events, such as bachelor or bachelorette parties. Let our bookers know these things in advance, and we will accommodate your wishes. In any event, as the owner, you authorize each charter as it comes up and you retain as much control as you want.
- Do I need to provide crew or do anything to help with the charters? No, that is one of the main advantages of our charter income program and our On Demand yachting solution. We take care of everything. We supply highly-qualified captains and other crew members. Florida Yacht management will take care of the pre and post charter cleaning, and will detail the interior and exterior after each use. All you have to do is sit back and collect your check when it’s all over!
- What if a charter guest spills a glass of wine or otherwise damages the yacht? We vet all charterers. That’s the first point. Second, our crews are trained to make sure that guests treat the yacht with respect. We also take a significant security deposit, which we can increase in certain instances (for example, we had a very successful charter to Boca Bash – which is wild – and the security deposit was three times the normal size). Our goal on every charter is to keep the charterer and your boat safe!
- How much do you earn on each charter? Typically we work on a standard 20% commission arrangement, although we are open to structuring our compensation in other ways as well. We work with every owner to develop a charter income program that best fits his or her needs
- Can I leave my personal items on the boat? Yes, particularly for day charters, we can secure one or more of the guest cabins for this purpose. As a general rule, valuables such as jewelry should be removed from the yacht prior to a charter, but if you’re doing day charters, it’s not a problem to leave clothing and other items on board.
- How many charters a year can I expect? Again, that is entirely up to you. It depends on your yacht, her location, and just how often you would like to make her available for charter. We have clients who only want a handful of charters a year, maybe just enough to offset some major operating expenses, while others want their boat to be more of a “charter machine”.
On Demand Yachting Has All the Answers
These are our most common questions, but I am sure you have many more. Deciding to put your yacht into a charter income program is not an easy decision, but our On Demand Yachting solution has been designed to answer all of your questions and take all of the hassles out of charter yacht ownership!
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.