It is commonplace for yacht owners to place their boats into a charter program to try and offset the cost of ownership. This is a cost-effective way to own a yacht and the yachting industry has a couple of charter management programmes available. Yachting Pages Media Group with the help of leading charter management companies analyses these programmes to help an owner decide if placing a yacht into charter management is a good option.
The most common programmes are the ‘guaranteed income’ programme and the ‘performance’ programme.
Guaranteed income programme
The guaranteed income programme is offered mainly by large, well-established charter management companies and is popular for owners who want to have an ‘easy’ ownership experience.
The programme is structured so that the charter company pays for all the expenses including, insurance, berthing, maintenance and general operating. The owner doesn’t usually pay anything for the duration of the program and receives a guaranteed payment, which is paid monthly, and can be as high as 9% annually of the boats initial value. The program can vary from charter company to charter company but it usually lasts from 54 to 66 months, so the longer the term, the more guaranteed income you will receive as a whole.