Owning a yacht provides many benefits especially being able to cruise in comfort and sharing memories with friends and family in exotic retreats around the globe for years to come. But what happens to your yacht when you’re not using it? If you don’t have the time to use your yacht on a regular basis or it’s only going to be utilized 4-8 weeks out of the year, it may be beneficial to put her in a professional yacht charter program.
Of course, not every owner will benefit from charters depending on certain variables. Such as yacht size, yacht type, and owner’s requirements. However, if a charter program does make sense for you and your asset you’ll be able to gain more from your investment and enjoy many benefits. Not to mention, it will embody an enhanced use of your asset.
One of the benefits of entering into a yacht charter program is the income you will be able to bring in, offsetting some of your expenses of owning a yacht. Typically, the income generated will be able to cover most of your dockage fees, routine maintenance, and insurance. All in all, reducing your operating expenses. Generally, the rule is that if you charter your yacht for 8-10 weeks a year it will normally cover the annual running costs.
Yachts that aren’t utilized frequently often tend to have more maintenance issues than those that are being utilized on a regular basis. There are a lot of moving parts to a yacht. Especially in the engine room and hydraulics to keep a yacht running smoothly. Think of it as a regular exercise routine for us. The same principle applies to your yacht. Entering your yacht into a charter program will keep her running and will ensure she gets regular exercise to prevent unnecessary maintenance issues. Also, entering in a charter program means a stricter maintenance schedule. This will ensure your yacht is receiving professional maintenance, service, and care on a regular basis.
By placing your vessel into a yacht charter program, you are converting your personal asset into a business asset. This, in turn, qualifies you for many tax benefits. Customers who purchase new or used yachts between 2018 and 2022 and use these yachts for chartering can potentially write off 100% of the purchase price. We advise you to speak with a tax advisor. Let them explain to you all the tax benefits of having a Charter business.
Entering a yacht charter program will enable your captain and crew to constantly work on the upkeep and preventative maintenance of your vessel. Your crew will have your yacht standing tall every day and always ready for the next trip. Not to mention, entering into a charter program will allow for a more “seasoned” crew. By interacting with different guests and visiting different places will allow the crew to develop a more diverse skill set and knowledge of traveling.
Due to the increase in the number of high net worth individuals who are interested in luxurious vacation adventures, the yacht charter market is expected to see an upward track in demand and growth. 2018 proved to be an outstanding year for yacht charters, attracting more first-timers than ever before. Yacht chartering is finally being recognized as a vacation option and getting the attention it deserves. 2019 so far, seems to be heading in the right direction. Predicting to overtake the stats for 2018.
If you have any interest in chartering your yacht, reach out to the experts here at Galati Yacht Sales. We will be able to explain all of the benefits and set up the right proposal for you. Gain more from your investment in your yacht by putting it into a professional yacht charter program. With the market growing rapidly, you’ll see an upward track for demand in the yacht charter market. Plus, all of the many benefits mentioned above.