Buying a Boat in Charter

[ausaviator]

I wouldn't pay more than $100k for a catamaran with outboards...

[Svan]

Originally Posted by Vasco

Congratulations. I am always interested in how things turn out. Many on this site will be interested in hearing of your experiences. Bet you can't wait till spring!

Vasco, thanks for the good wishes. Sailing with my family is the closest thing I have to a dream, and with 40 coming up, I thought it was time to get moving.

[Svan]

Originally Posted by GaryMayo

You pay the repairs. Someone over reeves the engine while taking her our, smokes the engine, and you have the repairs? Someone gets caught in high winds and goes not reef the sail, and the sail rips, or mast damage.

Let us know how it goes.

Gary-

Idiots who make mistakes pay for them. Chartering doesn't change that. When I sea trailed the boat, I was unaccustomed to the local chop which is apt to flip dinghies in certain wind from certain directions. I was warned, didnt heed it, flipped the dinghy and ripped out the D-rings; I as the charterer am paying for that. The agreement is clear, charterers have to return the boat in the same working condition. For instance if the intake is clogged and you don't check the outflow before zooming off, yes, the expense is not the owners.

I pay for upgrades and equipment replacement at ordinary end of life. Charters pay for damage.

[Svan]

Originally Posted by mausgras

I have just done it seems what you are thinking of doing.

The deal goes something like this. They do everything, marketing, maintenance and accounting. They take 35% but fixed costs like insurance, marina fees and repairs come out of my 65%. I can have the boat whenever I like for as long as I like, but of course that also means it is not"earning" anything when I am using her.
Based on her figures for the previous 12 months she would have earned 13% net on my purchase price.
I have only had her for not quite 2 months and she has had 4 weeks of charter and it is not even high season yet.
I am not in it to make a huge profit. I will be happy if she just covers her coats. Anything extra will just be a cherry on the cake and I will put back into some upgrades and options.
Anyhow that is the two year plan. After that? ????, who knows?

mausgras, (fat mouse?)

This is pretty well the deal I had in front of me and I took it. In my particular case it's 50/50 with the charter co and I am only paying for replacing anything worn out and splitting dockage, insurance, etc with the charter co.

Coming up is my first year and I can't wait. Someday she'll need a new generator and a bunch of gelcoat patches, fixing nicks from dropped beer bottles. I can live with that if there's a lovely cat at the end of it.

[rrclark]

Originally Posted by Svan

To actually answer your question, why buy it:

Because this is the boat I can see myself cruising on, and it will help pay for itself over the next couple of years while I learn the boat and my son gets his feet and learns to do what I say, at least sometimes.

Well, sounds like you've winner, as per your personal sailing tastes anyways. I think the real question here is the financial side; does it work for you? Can you see yourself riding through any unexpected costs and emerging solidly on the other side? If so, may be time to seriously consider taking the step and buying it.

[Svan]

Originally Posted by rrclark

If so, may be time to seriously consider taking the step and buying it.

Done!

Per the survey, some day she might need a new generator and the GPS is a bit out of date. There are spots in the gelcoat that hurt my feelings, but are of no consequence. I'm ready for those days and then some.

Bring on summer!

[nautical62]

I've owned a boat in charter for 6 years now and have no regrets. It's by far the cheapest and most convenient way I've ever owned a boat.

That said, not all charter management arrangements are the same and such arrangements work better for some than for others.

I think the biggest thing is to accurately crunch the numbers of owning in charter management vs. what ever else you are considering and objectively compare the two.

One thing I'd be wary of with any agreement whereby the charter company is not responsible for upkeep and damages is exactly how it is determined what you need to upgrade/maintain and exactly how they know what damage has occurred and enforce the the proper associated repair.

What if they think the boat needs new sails, but you disagree? What happens if you come use the boat and find some major damage and nobody seems to know how it happened - Who's responsible?

[gunkylump]

Originally Posted by Svan

Done!

Per the survey, some day she might need a new generator and the GPS is a bit out of date. There are spots in the gelcoat that hurt my feelings, but are of no consequence. I'm ready for those days and then some.

Bring on summer!

Great jump off point Gore Bay Svan, and nice boat! The north channel is just beautiful, great fishing, awesome blueberry picking, quite a few shipwrecks to dive to.....man, just thinking about it makes me wish I was sailing up there right now......if only it was just a wee bit warmer!

I hear you have a relative over our way......retired, long time sailor and all round good guy.

gunk

[Captain Bligh]

Svan, how did your summer experience go with your boat? Did you get the use out of it you had hoped for? Did it charter successfully? How did it work out financially?

[Svan]

I would have liked to get aboard a bit more, but the distance (6 hour drive) is a factor. Guys weekend planned for end I September which will be nice.

The boat was busy over the summer and less so in the shoulder season. Baffling, as the Great Lakes are amazing in September.

Financially and upkeep-wise I am happy with how things are.

[mausgras]

Congratulations Svan on your purchase. I recently took my boat out on 2 months owner charter. It was my first real sail since I bought her so it was a real get to know my boat session.
It was amazing to see all those little flaws I had missed on previous short sails. But they were not serious or anything that should not be expected from fair wear and tear.
One little plus I had not anticipated was the charter company staff were always willing and helpful with advice and a hand if I had a question or a problem. Problems there were a few, from a fouled propeller and I had to call for a tow to a blown masthead anchor light. I am way past going up the mast in that harness. Even finding the anchor winch breaker switch which was in a most obscure corner was only a quick phone call away.

I am an hour and half flight from where I keep my boat but since I only expect to take her out no more than two or three times a year it is no real hassle.

[belizesailor]

Originally Posted by nautical62

....

One thing I'd be wary of with any agreement whereby the charter company is not responsible for upkeep and damages is exactly how it is determined what you need to upgrade/maintain and exactly how they know what damage has occurred and enforce the the proper associated repair.

What if they think the boat needs new sails, but you disagree? What happens if you come use the boat and find some major damage and nobody seems to know how it happened - Who's responsible?

Proper maintence and repairs of damages are a couple of recurring issues with having a boat in charter. Ive owned a couple of boats in charter and these two items have always been a struggle. Ive even had charter management make cosmetic repairs over damages to try and hide them.

If you are an active owner that can really help address these issues. In my case, Ive usually worked with the company part-time as a charter captain too...often running charters on my boat...big help w this issue. Ive also helped decommission boats from totally absentee owners...which were trashed.

In the end the owner is likely to end up holding the bag on some of these issues. If you are an active owner then you can dramatically reduce the size of that bag.

So show up and use your owners time as much as possible. Keep a check list while you do and discuss it w the base manager.