Year long charter agreement

[Capt. Aubrey]

Hello Forum! Has anyone ever set up a year long charter contract on their boat? I would really like to find out how you structured the repair/maintenance responsibilities between charterer and owner.

Also, can anyone recommend a company that might set up these type of charter contracts. We already have potential charters so only need to come up with a good contract for both parties. Thanks.

[leboyd]

Seems like a good attorney with marine/charter experience would be cheaper than a charter company, since you already have the people who want to charter.

If you think of this as a one year lease similar to a house, then you can start from there. The question of who pays for what repairs/damage would be based on how much you are charging vs. the risk/cost of expected repairs/damage. A simple "base" lease, where you pay all repairs (like a house), would put you at the most risk but higher fee.

Seems "damages" would almost always be paid by the leasee, but then you have to define what "damages" are. If you coverer "damages", then you take on more risk and higher fee.

What would you think a fair price is with ZERO repairs/damages (convenience for the leasee to leasee instead of buying and then selling has some value)? Then, if you're paying the repairs, what do you think repairs would cost (including labor, parts, shipping parts to some possibly difficult location in the world, etc.)? If you want a markup on repairs (since you are taking the risk and that has monetary value), add that in.

Don't forget to calculate in some deprecation for the year. Since you're not using it, if there were no repairs/damages, the boat would be worth less in one year versus now.

Hope this helps some.