We sold 'Katlo', a Lagoon 450 two years ago to owners, Kathy and Mackie. 'Katlo' was placed in the luxury charter business in the BVI and has quickly made a name for herself in the industry. We have had glowing reviews from the owners, crew and charter guests and thanks to their great experience, they have given us their 'Top Ten Reasons To Own a Charter Yacht'.
Post written by Wanda Anglin
1. Reduce costs of ownership
Dockage, insurance, routine maintenance, not to mention your loan's principal and interest...they all add up! Earning charter fees can significantly reduce these necessary carrying costs.
2. Regular proper maintenance
Even infrequently used boats (and other vehicles) need regular maintenance. In fact, sitting idle especially in saltwater environments can result in deterioration of vital equipment that may get overlooked. Chartered yachts get the attention to details during regularly scheduled maintenance. This preserves your investment and makes the boat more enjoyable when you use it.
3. Increase safety
Unused gear and equipment generally lose their effectiveness. Charter yachts are regularly checked for working fire extinguishers, the presence of life preservers, the seaworthiness of the hulls, and rusted bits that can jeopardize a safe and enjoyable sail. So when you take your owners' time on your yacht, you know it is well-maintained and safe.
4. Get on the water faster
If you own any boat, from the smallest to largest, if it is not used frequently, one of the biggest headaches is getting it seaworthy and human-worthy. Swabbing out, airing out, checking and stocking safety gear...it is exhausting or expensive to hire it out. When your yacht is under charter, frequent use and professional maintenance and outfitting ensure it is ready to go when you are.
5. Brokers make marketing easy
Yacht charters is one small business that you don't have to do it all. Charter brokers have well-established marketing channels with a steady stream of customers. If you have a well-maintained, attractive boat, you can focus on the hospitality and day-to-day business by using a broker. Of course, read the fine print, and know what you are getting for the broker's commission. Most brokers are well worth the fees if they provide marketing, high occupancy levels, and other types of support. Do your homework as there are many types of brokers and many revenue-sharing and cost-sharing schemes. Pick the one that is right for your business model and your boat.
6. Yacht as your second home
Current US tax laws allow your yacht to be designated as a "second home" if it has a galley, head, and sleeping accommodations. If your charter yacht qualifies as a second home, the interest on the mortgage may be deductible.
7. More tax advantages
In the US, depreciation for tax purposes can result in much-needed tax relief for high income owners. Of course, consult your account and tax attorney.
8. You can tan year round
Especially if you run your yacht charter in the Caribbean or other temperate climate, you can book your own charter as frequently as you like and take in the sights and the sun! Of course, when you are cruising, you will not be generating revenue, so it is best to limit personal use during high season.
9. Ego boost
Most of us are not proud of that human nature that says, "Look at me, I'm living large!". But let's face it, it is a real ego boost when you can drop into some conversations that you were just out on your yacht sailing around Tortola. Of course, you will be able to make this mention with little effort when someone asks about your great tan in January!
Receiving notes and online reviews exclaiming what a wonderful time a family or honeymooning couple had on their sailing vacation is rewarding. It is especially exciting when your charter yacht has introduced someone to sailing. Many vacationers go on crewed yacht charters for the experience and find a love of sailing! Our friends who now own a BVI yacht charter, fell in love at first sight so it really does happen that people get involved in sailing after just one encounter.
If you have ever thought about owning a yacht charter, you should do it. Sure, there are risks. But if you have the passion for sailing and the idea of sharing sailing with others, then yacht charter ownership is for you!