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Yacht Charter Management Programs In A Nutshell

Owning and sailing a catamaran in an exotic part of the world is a dream for most people. However, paying for maintenance, insurance, dockage, new “must-have” equipment, and other bills can be a drain on any yacht owner as you watch the sum add up monthly. Fortunately there are ways to reduce the overall cost of owning a yacht so you can get back to smiling with the wind in your sails.

Charter yacht management is one way to make it more affordable and help keep costs low while owning the boat of your dreams.  We have used these same methods with our own boats and we have helped hundreds of other sailors do the same.

But don’t be fooled! You can get trapped into something that does not work for you because not all management companies or charter operations are a good fit for everyone. Not every boat fits the “charter” model either. Make sure that you understand what you are getting into. Read and understand your contract. Make sure you have a good exit strategy and if you are unsure, get a good expert advisor.

Read on to get a video overview and more details of the 5 most popular yacht charter management programs offered by companies like The Moorings, Dream Yacht, TMM, CYOA, and others. 

Additional details for each of the charter management programs follow this video. Also, see our analysis to help you decide if buying a new, charter yacht or used yacht is right for your situation . 

Guaranteed Income Program

He chose the catamaran and charter company program .

If you are unsure of how to navigate this process and which choices would be best for you and your family, contact us. We specialize in the “Boat As A Business” program and how to offset the cost of ownership using charter yacht management and tax incentives. Our services come free to the buyer if we help you purchase your boat.

Request More Info           1-804.815.5054

*Please note: These numbers, percentages and assumptions or rules are generalizations and can change from time to time and from charter company to charter company. We recommend that you get yourseld a trusted advisor to guide you through the process if you are new to charter yacht management.

• 7-9% Guaranteed Income For 5 Years
• Operating Costs Paid by Charter Company
• NO Further Costs to the Owner
• Up to 12 Weeks FREE Worldwide Sailing on sister ships
• Comprehensive Phase-Out At End Of Program

This program is offered primarily by the bigger charter operators like Dream Yacht Charter and Moorings/Sunsail. The charter company pays the charter owner between 7-9% of the total boat value at the time of purchase each year for the duration of the contract, which is usually 5 years. The guaranteed income covers the mortgage payment, which is the owner’s only financial responsibility. The charter company pays for all expenses, including insurance, marina fees, and maintenance during the contract. The boat owner gets to use his/her boat or a sister ship at any of their worldwide bases for between 8 and 12 weeks per year. At the end of the program the owner proceeds with the phase-out program and has his/her surveyor represent them to insure a fair outcome. Based on historical data, a catamaran is worth approximately 60-65% of the original value after five years in charter. The owner then has several options:

• settle the loan and sell the boat
• settle the loan, take the boat, and go sailing
• continue chartering the boat in a second-tier charter company
• trade in the boat rolling into a new boat continuing with the charter company

Pros: Whether the boat is chartered or not, the boat owner gets a guaranteed payment monthly for 5 years and there are no additional costs for the owner. Check out this article that explains this program in detail:  Guaranteed Income program: Do the numbers work ?

Performance Program

• Shared Revenue with Generous Income for Owner
• Shared Risk with Charter Company
• All Operating Costs Paid by Owner
• Unlimited Owner Use
• No Owner Exchange 

Most charter companies offer this program and smaller charter companies like CYOA, TMM and Catamaran Company particularly favor this program. They usually do not have the financial muscle behind them to offer a guaranteed income, therefore, this is a good alternative.

The Performance Program is the highest yielding program financially and can be very beneficial for the owner, particularly in the first 3 years. But, unlike the guaranteed income program where the buyer has no financial risk, there is a shared risk attached to this program. The income split is usually 60-80% to the owner and the rest to the charter company. However, be aware that what appears to be better split ratios, such as 80/20 sometimes end up yielding fewer dollars than a 60/40 split because of loaded costs.

When looking at the split, more attention should be paid to the actual bottom line number. For example, some companies will deduct the charter booking commissions before the split while others pass that cost on to the owner entirely. So, make sure to compare apples with apples. With this program the boat owner is responsible for ALL operating costs including the mortgage payments, insurance, maintenance, and dockage. Owner use is unlimited, but ONLY on the owner’s own yacht – there is no reciprocal use unless negotiated beforehand. For instance, Dream Yacht Sales will in some cases give two weeks of reciprocal use at a 50% discount. For this program, the reward is high but the risk is equally high.

Business Yacht Ownership

• All Operating Costs Paid By Owner
• Tax Advantages Using Section 179 & Bonus Depreciation
• Worldwide Owner Exchange (if pre-negotiated)

Very few charter companies offer this program. It can be complicated to manage and should be approached cautiously. The tax benefits must be carefully planned, documented, and implemented to make sure that the business activity can withstand scrutiny. This program is based on the performance program template discussed before, but has additional modules which enable the buyer to run the boat as a small business.

By placing the yacht into a corporation and running it as a business, the owner is able to create substantial tax advantages that further offset the cost of ownership. For U.S. buyers who are in high income tax brackets, this is definitely an option that should be explored.

BUT be careful! You CANNOT structure your boat as a business and then purposely run it at a loss to avoid wear and tear while offsetting the cost of ownership with business tax deductions. There are very specific rules and requirements that need to be complied with in order to meet the standard of actively operating a business for profit and taking tax advantages and remain in compliance. If anyone tells you that you only have to do “a few” charters per year to be in business, run! YOU CANNOT PRETEND TO BE IN BUSINESS !  Check out more details about Business Yacht Ownership modules . 

Lease Purchase Program

• 35% Down Payment
• NO finance required
• Zero Out Of Pocket Costs For Owner
• No Income To The Owner
• Worldwide Reciprocal Owner Use
• 25% Balloon Payment at End of Program
• Own Yacht for 60% of new price

This program is typically only offered by French charter companies like Dream Yacht Charter or Navigare. The Moorings also offers a version of the program, but is not as flexible or generous to the owner. This program allows a buyer to purchase a boat using the charter company financing and the owner does not need to apply for a conventional mortgage. Canadians, in particular, benefit from this program because it is so hard, if not impossible, for them to get finance on a boat in the U.S.

The buyer pays 35% of the purchase price at the start of the program and then there is a balloon of 25% at the end of the 66-month program. The charter company retains the title until the balloon is paid at which time the title is handed over to the buyer free and clear. You effectively get the yacht at a 40% discount. There is reciprocal owner use worldwide for a maximum of 8 weeks. There are absolutely no out of pocket costs for the duration of the program and there is no income to the owner. There is a comprehensive phase-out program at the end. This program is a no-brainer for people who want to sail worldwide on different makes, models and sizes of boats. The other upside is that there is no residual mortgage at the end of this program. Cons: You have no option to end the program early and the charter company holds title until the 25% balloon payment is settled at the end of the program. 

Owner-Operated Crewed Yachts Within Charter Company

• Operate As Independent Small Business
• Yields Best Revenues With Robust Booking System
• Very Generous Revenue With 70/30 split
• Owner Is Responsible For Operating The Yacht Independently
• The Use of the Charter Company Infrastructure, Charter Bookings & Support
• Substantial Tax Advantages Available Using Section 179 & Bonus Depreciation (if applicable)

Most of our catamarans buyers who want to live the cruising lifestyle and operate their boats themselves place these catamarans into one of several crewed charter programs. Both The Moorings and Dream Yacht Sales offer very good platforms for owner operators. The basic idea is that the boat is operated as an independent business, which enables the owner to quickly pay for the boat through the use of available tax advantages and income from charters. Other owner operators simply use the very generous income to pay off their boat quickly and opt not to use tax advantages. Either way, it provides the owners a way to buy a bigger catamaran than they otherwise would have been able to afford and live their chosen lifestyle! Our clients on a Fountaine Pajot Helia 44 is a perfect example  of how this program works.

Yacht Ownership Program Comparison Table

See more about charter management programs and related terminology .

Insights From Our Clients

One of our clients who bought a Lagoon 42 catamaran, Blue Buddha , this year and placed it into charter with Dream Yacht, documented his experience of the buying process on his blog. Check out his perspective on  why he chose the catamaran and charter company program .

Request More Info  OR Call 1-804.815.5054

*Please note: These numbers, percentages and assumptions or rules are generalizations and can change from time to time and from charter company to charter company. We recommend that you get yourself a trusted advisor to guide you through the process if you are new to charter yacht management.

Estelle Cockcroft

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Pick your destination, navigare offers yacht charter in 12 different locations all over the world, with more than a thousand islands.

Charter a yacht in Croatia with the region's best sailing holiday operator. We have a full selection of options for catamaran, and sailboat charter in Croatia, bareboat charter, skippered charter, luxury crewed charter and more.

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Sail the gorgeous & warm waters of the Caribbean aboard a charter yacht from Navigare in the British Virgin Islands. Enjoy crystal clear turquoise waters, unspoiled white sandy beaches, superb snorkeling, and a world-famous vacation destination with excellent restaurants and a relaxed, fun-loving atmosphere.

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Spain is a magnificent Mediterranean sailing destination that offers you a chance to explore an adventure destination famous for its flamenco music, fiestas, delicious cuisine, remarkable architecture, vibrant nightlife, dramatic history, and much more.

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With beautiful sunny days, irresistibly scenic surroundings, and inviting people ready to make your visit a memorable one, Türkiye has everything you want and Navigare Yachting is ready to bring the experience to you!

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A Comparison of Yacht Charter Management Programs

What are the advantages of yacht charter management programs compared to the typical ownership program?

Unpicking the process of yacht ownership starts with a needle and thread. Seeking the most rewarding option is finding tailored solutions that fit your lifestyle like a dream. We know that you are keen to embrace life on the open water. Such as, signing off those golden sunsets, waking early to the cry of the gulls. Or getting back to nature and cruising from port to port to uncover different cultures.

However, this part of the process can be complicated and frustrating and overwhelming. But this is not the time to compromise and rush; this is the time to take it slow, seek as much advice as possible. And also ask yourself a series of straight-up questions.

But knowing what you want is often a process of elimination and knowing what you don’t want.

In order to help you paint a clear picture of the tailored yacht ownership solution that YOU need, take a look at these questions to be considered…

Would you like to place your yacht in one destination or exploring different seasons around the world?

Choosing a charter ownership program or contracting a charter business to run charter management for your yacht, allows you not only to sail the waters where your boat is based. But also use what is called a syndicate or transferrable owners weeks so that you can sail other yachts in the fleet and explore different destinations.

For the charter ownership programs , some of these rights are limited and often constricted to points systems and categories of yacht models and seasons. It’s also worth knowing that the charter business will have fixed fees for changing and using other yachts in their fleet.

For the boat owner with a charter management program with an independent charter operator, the rights and flexibility are the owner’s prerogative. For instance, the owner could use his charter income to charter other yachts at other destinations, booking this himself or using a trusted partner to manage the bookings and planning the trip.

Is it then a significant factor where you place your yacht?

Well, to put it simply: Because the charter ownership programs will almost always be restrictive. Not only in terms of where the boat is placed for the charter program offered to you. But also the number of years you are locked into the program.

With a tailored yacht charter management program, you are free to choose the starting point and also change location and charter operator when you desire. With a trusted partner that can manage this for you, you will be able to explore your preferred sailing grounds with your yacht and also take advantage of more favourable charter markets to optimize your charter investment ownership.

Note, that it’s up to the charter operator to convince you to stay and thus the pressure will be on them to perform to the standards and numbers that you have projected and expected in your agreement with the operator.

What type of contracts can you expect when entering the different programs?

1. charter ownership programs.

Charter Ownership Programmes sound simple, but the financial arrangements behind them are usually very complex. Therefore, contracts and agreements should make the financial arrangements explicit. In most cases though, the buyer only takes ownership at the end of the program so the rights and responsibilities of the buyer during the contract should be clear.

2. Charter Management Programs

Due to the tailored nature of many Charter Management Programs, there is an extremely wide variation in terms. So the biggest areas to consider are Charter Operations & Maintenances Support. Who is responsible for what activities eg cleaning before and after a charter, handovers, fixing minor faults, replacing lost items and consumables as well as arranging and paying for regular maintenance.

To summarize, the biggest difference between traditional yacht charter ownership program and tailored yacht charter management program are:

1.) Income in mon ey and points

2.) Restricted choice in yacht types

3.) Investment in a charter program

1.) Income, 100% real money

2.) Free choice in yacht type

3.) You invest in your yacht, not a program

What can you expect when entering a Yacht Charter Management Program with Yacht-Match?

100% what you want & need.

The bigger companies that offer these standardized programs (i.e: Navigare yachting , Dream Yacht Charter , Moorings and Sunsail ) usually have programs and forms of investment where they have predetermined the terms and what is actually best for them (ie the charter company) Leaving you with little or no chance to change anything.

With Yacht-Match you’ll be provided with customized solutions for owning a yacht in charter. Our yacht charter management programs are also deliberately set up with the intention to define all the details and the yacht’s specifications according to your preferences, right from the beginning. It will be ideally configured and matched with our network of niche and premium charter operators around the world.

Receive a comprehensive portfolio of matching offers & solutions

Create unmatched offers & outperform traditional charter ownership & management programs. Having a dedicated expert to optimize and secure unique yacht offers and management extends our assignment and commitment. Therefore, it requires ongoing investigative consultancy. The result: you gain access to the full range of possibilities.

Unbiased advice and consultancy- Access to comparison tools and financing options

Your Boat – Your Preferences: not a program nor scheme. You’ll get a wider perspective. Become equipped with our unique comparison tools and financing options as well as get access to the best deals on the market. We will also compare existing offers from the top charter operators offering a charter management program. And there after, either customize them or create new proposals to match your wishes. While you get to enjoy all the benefits of a tailored charter management.

Receive financing options

Optimal Investment: Become informed & empowered with the freedom of knowledge and choice. You will also get a wider perspective. You will be provided with our unique comparison tools and financing options, as well as getting access to the best deals on the market. We will compare existing offers from the top charter operators offering charter management and either customize them or create new proposals to match your wishes. While you get to enjoy all the benefits of a tailored charter management.

Exclusive access to the top charter operators and marinas worldwide

Yacht-Match is building a network of premier charter operators that are based in the most sought-after sailing areas in the world. Currently, we have over 62 marinas and over 700 yachts in management. We call our partners Boutique Charter Operators. Each of them offers highly personal service and outstanding yacht maintenance.

Here’s an example of a Yacht-Match pre-tailored Charter Management Program!

The Yacht-Match Explorer program is a unique yacht charter ownership designed specifically for those planing to make their over-seas experience.  

The specification of the yacht and set up of the charter ownership is tailored towards your needs so you can enjoy the benefits of charter management, and at the same time, allow yourself the best possible preparation for blue ocean sailing and voyage. 

What makes the Explorer program unique?

The Explorer program is deliberately set-up with the intention to customise the yacht specification and ownership program from the beginning of the enquiry and proposal stage- ideally configured and matched with our network of niche and premium charter operators around the world.

So through Yacht-Match professional guidance, you will be informed and given recommended specifications for a yacht to be operated in charter and with a blue ocean package and extra equipment preparation.

The Yacht-Match network, with more than 62 bases around the world, allows you to chose from several starting points, and also access to charter operators that will be able to extend your charter management if you like to reenter the charter fleet after your big over-seas experience.

Explorer Program Details

The Explorer program is a bespoke charter management program. It’s configured to meet the requirements of a well prepared and correctly specified yacht to be operated in charter and managed by yourself in your blue ocean voyage. We also serve as your broker and dealer in selling the yacht and your professional unbiased consultant that will guide you through a proposed plan and offer you a range of options with a portfolio illustrating the suggested yachts, financing, and Explorer package with the correct matched charter management.

Finally, The Final Proposal and end offer will contain a correctly equipped and specified yacht; details of delivery & registration; details of the charter management and matching operators; financing options and a contingency plan for re-entering a charter fleet during the next maximum 10 years.

Intelligent Boat Ownership: Enhanced by Yacht-Match

• 100% what you want & need: True best fit!
• Create unmatched offers & outperform traditional charter ownership & management programs.
• Your Boat – Your Preferences: not a program nor scheme
• Optimal Investment: Become informed & empowered with the freedom of choice
• More Options: +144 models & +60 destinations
• Tailor Made: Customisable to your preferences
• Specialist: +30 years expert knowledge
• Boutique Charter Operators : Handpicked & top rated

So to give you an example, here are four yachts that can be found in our conventional programs and in charter management programs!

Follow the links for information!

This yacht is an example of the Yachts available for a tailored charter management program with Yacht-Match.

– An impressive yacht to say the least and not one found in conventional charter programs.

Jeanneau 440

This yacht is an example of the Yachts commonly found in conventional charter management program.

– The Jeanneau SO 440 replaces the very popular 439 and is an improved model very popular in charter and ideal charter boat if you are after a safe bet.

This yacht is an example of the Yachts commonly found in conventional charter management programs.

– The Bali 4.1, 4.3 and the newer Bali Catspace, are ideal charter ownership investments as they are purposefully build for the market and very appreciacted with charter guests and with our operations as they are to handle and maintain.

Nautitech 40

This yacht is an example of the Yachts available for a tailored charter management program  with Yacht-Match.

– The Nautitech is ideal yacht for the owner that wants put that “sailing feeling” back into catamaran ownership.

The new and updated Nautitech 40 open version 2, is not sold through the conventional charter companies offering programs. The yacht is reserved for smaller and independent management where focus is on a high level of maintenance appreciated by the shipyard, the charter guests and ultimately the yacht owner (investor).

How can we offer advice and at what value?

We are a consultancy company giving you a better overview of the options and how to become better informed. With this information, we can tailor charter management for you and use our service to receive an improved version of the traditional charter ownership programmes one comes in contact with on the market.

You assign us to represent your interest; you are our principal. We don’t work for a specific partner nor a shipyard. Our independence ensures you receive a professional advisory and unbiased consultancy service at all times.

As well as representing the interest of our prospecting clients we also collaborate with our business colleagues and partners worldwide who will play an active part in contributing to the advice and publications, resulting in a balanced view of the unfolding events.

Sounds interesting? Fill out the form and we’ll set up a meeting for you!

• Yacht-Match News and Advise
• December 1, 2020

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