A little background before I comment. We own/charter a 30 foot Carver power boat
in the Puget Sound/San Juans through ABC Yacht Charters. We purchased the boat a year ago for 32k and then put 12k of improvements/repairs in it. Moorage and insurance
are on top of that, although the charter service
gets good deals for both.
Offsetting this was net charter income of $7900, 75% of charter rates. We were still able to use the boat during the summer, e.g. Labor Day weekend, whenever the boat wasn't scheduled. Also, it's fully available to us for winter boating
, Oct-May, which we love!
Bottom lines for us are these....
1. We didn't pay a nickel of sales tax. In Washington
, the charterer pays it. This applies to repairs
and upgrades as well.
2. We get to deduct losses while depreciating the boat.
3. We are surrounded by a team of mechanics, etc. who make it their business to maintain the boat to very high standards while acquiring the best rates and materials. The advantages of a fleet buying
4. If there is damage, then the charterer or ABC pays for the repair. This happened on the final charter last summer, a stanchion was ripped, and ABC is paying for repairs
. Earlier, a rope
got caught in the prop. Again, ABC paid for the rope
, haulout, diver costs, and prop replacement.
5. I have a better boat now than when it was purchased. The $7900 net income made it possible to pay for much of these upgrades. Also, the boat gets used year round vs. sitting idly in a marina, like it did b4 we purchased it.
Now...this is how things are done in Washington
state. We are looking into eventually purchasing
a Cat and chartering it out of the Caribbean
. Different standards may apply but my charter manager, who spent 30 years there in the biz, assures me it's often a mutually profitable both for the owner and charter company, if you choose the right boat and charter company.
Hope this helps.