MY FAVOURITE Industry Insight
How can you make the most of your financial investment when owning a yacht?
Owning a yacht is a significant financial commitment. From general maintenance costs to berthing fees, crew wages and insurance - you want to know that you’re getting the most out of your investment as possible.
But with business, family, and various other commitments, not everyone is able to spend the majority of the year on board. So when only being used for a couple of months per year, how can you offset the running costs to ensure your investment is as sustainable as possible?
One key option is putting your yacht onto the charter market. Whilst you may not have considered chartering your yacht initially, there are many benefits to seriously consider. With advantages for the Owner, Captain and crew, it’s an all-round solution that can make owning a yacht more financially sustainable and a more enjoyable experience for all involved.
When adding your yacht to the charter fleet, you are essentially opening it up to hire for certain periods of the year. Charterers will be able to hire (charter) the yacht, Captain and crew for a predetermined period of time, exploring iconic destinations, and return the yacht at the end of the vacation. Yacht owners often decide to charter their yacht during the periods in which it will not be in use, allowing them to offset costs of maintaining the yacht.
Charter management helps you get your yacht onto the charter market, and looks after every aspect of its successful operation. From listing the yacht for charter, to managing the marketing and promotion, to finding suitable charterers and overseeing the financial and contractual transactions, your charter management team makes every step of the process as smooth and efficient as possible.
With one of the largest charter fleets in the world and over 80 owners entrusting Ocean Independence with the successful charter operation of their yachts, our charter management team boast extensive experience and a vast network of contacts, ensuring you get the support you need throughout the charter process and guaranteeing a fair and suitable price.
Whilst the idea of chartering your yacht may seem foreign and unusual at first, the multitude of benefits often outweighs any concerns.
The financial benefits of chartering are significant. By chartering your yacht when not in use, you will be able to offset your running and maintenance costs throughout the year. By generating an income, your yacht will be more financially sustainable than sitting in the marina unused for months at a time.
Retaining a high quality and motivated crew can be challenging. In an industry where crew turnover is naturally high due to the nature of the role, to retain your crew you need to keep them engaged, and leaving the yacht in the marina for large amounts of time increases the chances of them looking elsewhere for the challenges and variety involved in working onboard a charter yacht.
By chartering your yacht, your Captain and crew will be in action for the majority of the season, either with you (the Owner), or with charterers, keeping them motivated and allowing them to explore, even when you are unable to make use of the yacht yourself. Yacht crew are trained to the highest standards of service, so it’s no wonder they often want to keep those skills in tip-top shape.
When the time comes that you finally decide to sell your yacht, having a successful charter history will have a positive impact on its value. Furthermore, many future buyers end up purchasing their own yacht once they have fallen in love with the lifestyle through charter. Therefore, giving these qualified buyers memorable experiences on board your yacht will surely put you in a good position when the time comes to upgrade or sell.
Chartering a yacht isn’t just beneficial for the Owner. It also reaps many benefits for the Captain and crew of the yacht, making it an ideal situation for all involved.
Much like for the Owner, retaining an industry-leading crew is a priority for the Captain, and if the yacht spends the majority of the year docked in a harbour, it won’t take long for the crew to look elsewhere for new, more active employment. By chartering, the Captain is more likely to hold onto a highly motivated team of crew members, which will ultimately benefit the Owner, Captain and charterer in the long run.
Furthermore, an active charter schedule helps crew keep their skills up to speed with the exacting standards demanded by clients, and contributes towards the continual development of the crew’s expertise.
When not in use, the crew are likely to start missing the open waters, tropical islands and joie de vivre that yachting offers. By chartering your yacht, you can offer the Captain and crew the opportunity they crave to return to the ocean and explore - something that will undoubtedly aid their motivation and general loyalty to the yacht in the long term.
When working on board a yacht for a dedicated Owner, the Captain and crew are working only on their wages. But when working on a charter yacht, there is the added benefit of gratuities. Usually amounting to around 5-15% of the charter fee, the Captain and crew are able to split the gratuity between them, which can provide an attractive addition to their paycheck every month.
Choosing the right charter management company will do more than book your calendar. Finding the right team will ensure that your yacht is chartered to the right people, at the right time, and for the right price.
Ocean Independence has one of the strongest and most extensive track records of success in the yachting world, so if you would like to find out more about charter management or would like to add your yacht to the charter fleet, please contact our team.
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