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What is Charter Management?
Charter Management is a means of generating income from your yacht when
you are not using it.
Why would I want to charter out my boat?
There are a number of advantages to chartering your boat.
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You can generate income from your boat when it would otherwise be idle.
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The income you will receive can be used to reduce the cost of ownership
or help subsidise a more expensive boat.
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If it’s chartered out regularly it can be considered a business allowing
annual running costs, repairs and maintenance to be reclaimed. VAT can
also be reclaimed on a new boat which makes it cheaper to purchase and
normally more than covers the cost of preparing your boat for charter.
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The boat will be regularly cleaned and repaired so you can just turn up
and sail.
Who owns the yacht?
You do, we just charter it from you and pay you for the privilege.
How much income can I earn?
That depends on how much you make it available to us, how old it is, how
much equipment is has on board, and the type and size of the boat.
Expect a 38 foot new yacht to earn you around £900 for a 7-day high
season charter; a similar five year old boat could still earn around
£750.
What kind of boats are you looking for?
We are looking for 32 to 40 foot modern sailing cruisers by the main
brands who are Bavaria, Dufour, Beneteau and Jeanneau. The boat should
be no more that 3 years old at the start of the arrangement.
How much of the charter amount do I receive?
We charge 40% commission so you will receive 60% of the charter amount.
The 60/40 split is the industry norm. If we use your boat for training
we will pay you a daily rate. For a 38 foot yacht expect to receive
about £90 a day.
Can I use my boat when I want to?
Yes, if we know you want to use your boat we will not take bookings for
that period. You can phone us or use our dedicated web-site to tell us
when you wish to use your boat. When you are using it you cannot be
generating income so you will need to strike a balance between charter
and personal use.
Who will be using my boat?
When Under charter we require 2 experienced persons on-board, and the
skipper must hold an RYA Coastal Skipper practical certificate. We
always ask for proof of any qualifications and experience. Clients who
are not suitably experienced can still charter, provided they pay for
one of our skippers to be on-board.
If we use your boat for training one of our fully qualified RYA
instructors will be on-board at all times caring for your boat.
Can I elect to only charter my yacht for skippered charter or sea school
use?
Yes you can ask us not to bareboat charter your yacht. This means it
will only be skippered by one of our highly qualified and experienced
instructors. Be aware that this will reduce your income potential.
What happens if the charterer damages my yacht?
We insist on a damage deposit which covers the excess on
your insurance policy so this can be used to fund any repairs or losses.
If the cost of the damage exceeds the deposit amount a claim will need
to be made on your yachts insurance policy.
To ensure that your boat is fit to charter, maintenance may need to be
carried out at short notice, sometimes in between the boat being
returned from one charter and going out on the next. This period can be
as little as 3 hours so it will not always be practical to consult you
to obtain permission for expenditure. For this reason we reserve the
right to make repairs up to an agreed budget, normally £250. These
expenses will be added to your monthly statement and deducted from any
moneys owed to you.
Can I
skipper my boat when on charter?
Sorry
but no. Even though it is your boat, when on charter it is the law that
only suitably qualified commercial skippers are allowed to be in charge.
It is unlikely that you would be qualified or insured to act as
skipper. Our skippers are very experienced, highly qualified and have
been professionally trained to deal with all sorts of emergencies.
Do I need to sign an agreement?
Yes, a formal agreement is drawn up between us.
Can I
cancel the agreement?
Yes.
We require just 3 months notice but you must honour any bookings already
made.
What
must I do to my boat to ensure it is fit for charter?
All
vessels used for commercial use must comply with the Maritime and
Coastguard Agencies (MCA) code of practice which means it must pass an
inspection to ensure it is safe and properly maintained. This is mostly
a case of adding safety gear and equipment and making upgrades to gas,
heads and engine pipe work as well as adding a 3rd reef to
the main sail. The boat will need to be inspected by an MCA surveyor
both in and out of the water. It will also need to be inspected
periodically to ensure it continues to comply with the code.
What
will it cost to code my boat?
This
depends on the boat and how old she is. A modern production cruiser
built within the last 10 years should be straightforward to code. We can
provide an estimate on request but the cost is likely to be in the
region of £4500 to £7,000, depending on how much equipment you already
have on board. We have experience of coding vessels and can give advice
or undertake work for you.
I
already have some safety equipment, can I use this?
Yes
almost certainly. Most safety gear available complies with the MCA codes
or can be modified inexpensively. However, coded vessels require a
special liferaft which you probably won’t have. You can rent these for
about £400 a year rather than buy them as they can be expensive (£2000
plus).
What costs am I responsible for?
You are responsible for coding the vessel, annual berthing fees,
insurance, any mortgage or loan repayments, storage fees ashore, winter
maintenance and any repairs and renewals required to ensure the boat is
fit for charter.
We will pay for any expenses incurred during a charter such as fuel, gas
and minor breakages.
Will
my existing insurance policy cover charter?
Almost certainly not so you must inform your insurance company before
your boat can be chartered. Some insurance companies will not insure
charter boats. We are happy to recommend insurance companies that will
cover your boat.
What
Insurance does Anglia Sea Ventures have?
We
have a very comprehensive insurance policy that covers training and
charter including public and employer liability to £10,000,000. We also
have insurance against negligence by our skippers and instructors.
Do I have to keep my yacht at a specific marina?
We prefer that your boat is kept at Ipswich Haven Marina which happens
to be one of the less expensive marinas on the Orwell. Other Marinas
will be considered but this may cause complications.
Can I leave any personal possessions on board during a charter?
The owner’s personal kit should be either removed or stored out of the
away prior to charter in case it becomes lost or damaged.
Do I
have to setup a business?
No
but you will probably benefit from doing so. Any income from charter
should be declared on your tax return. You should speak to an accountant
who can offer advice.
Do I
have to register for VAT?
No
but there can be advantages if you do, the most obvious being the
reclaiming of VAT on the purchase of a new yacht. Be aware that when you
sell the yacht you will need to charge VAT on the sale price (not the
purchase price) and pay this to HM Customs. If you sell through a yacht
brokerage they will do all of this for you.
Do I
have to stick branding on my boat?
No.
However, a lot of charter enquiries come from seeing our boats out on
the water so you will generate much more interest, and therefore more
income, if you let us brand your boat. Branding can include our website
address on the hull, boom or sail cover, our logo on the bow or simply our
logo on removable dodgers. It’s up to you and we will cover the cost of
branding and cost associated with the removal of our branding at the
end of the agreement.
How
do I get paid?
Because we take the charter booking, payments are made to us by the
client. We will send you a monthly statement of charter activity that
will detail any moneys owed to you. You must then invoice us, adding any
VAT if applicable, and we will settle your account promptly, normally
within 14 days.
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