IYG explains the realities of chartering your boat to offset costs.
For many boat owners, the prospect of chartering their boat out to paying guests a few weeks a year or more is a tempting prospect. Yachts are, after all, expensive to own and maintain, why not try to scrape back some of that expenditure at times when your boat is sitting idly at the dock? It’s not a bad idea. But IYG’s Boomer Jousma wants to make one thing clear up front for people who want to try it out. “It’s very unlikely you are ever going to turn a profit chartering your yacht,” he says. “That’s not very realistic, but you can definitely help to offset some costs.” With some very ballpark math, we can say that a $10 million dollar vessel may cost about $1 million per year to operate. If you charter that yacht out at say $100,000 per week, for five weeks a year, chartering begins to make sense to a lot of people.
There is also another major benefit many boat owners don’t think of. “Crews love charters,” says Jousma. “Yachties don’t become yachties to sit around for months at a time at Lauderdale Marine Center. They got into the business to see the world, so charter operations suit them just fine. They also like the extra money from tips that they earn. And as everyone knows, a happy crew makes for a happy boat.”
Chartering can also help with relocation fees. If for example, a yacht is in Lauderdale butthe charter client wants to book it for the Bahamas, they will be on the hook for the costs to get the vessel across the Gulf Stream. And when the charter is done, the boat will still be in the Bahamas, ready for the owner to get aboard.
Chartering can be a wise decision for a boat owner if approached with a realistic lens. As a means of offsetting costs and keeping your crew happy, it’s a very viable route to take. Talk to your IYG representative if you are thinking about chartering your own boat.