Buying a boat is a dream for many people. But it’s expensive. And buying a boat isn’t the only problem you’ll face, since you’ll also have to think about boat maintenance. If dreaming isn’t enough for you, there’s a solution to make your wish come true: use rental management to buy your future yacht. Let’s take a closer look at this opportunity before taking the plunge.
What exactly is rental management?
Rental management is a partnership between a charter company and the buyer. You buy a boat and the company takes care of its maintenance and management. But rental management will also enable you to receive an income that will help you pay for the yacht in question. The company will rent out your yacht and earn regular or occasional income.
It should be pointed out that these companies are generally partners with major boat brands. This partnership also enables you to benefit from advantages when you buy.
Purchase options available
There are generally 3 types of finance: guaranteed income, forward sale or purchase option.
The guaranteed rental income scheme is ideal if you already own the entire sum to be invested. The rental management company will only cover the costs associated with running your yacht (risks and expenses). The company will guarantee you a fixed annual return (generally between 8 and 9% of the price of the boat).
The forward sale (or purchase option) programme is also reserved for those who have the money to buy their yacht outright. However, the buyer is responsible for the various costs (risks and insurance in particular). The income obtained is higher (up to 70%). Owners can use their yachts as they wish. Income will be calculated on the basis of the rental periods. Depending on the company, this option also offers a discount on the price of the boat.
The variable income programme is a completely different option. The buyer does not need to have the full amount to purchase the yacht. The purchase is made in monthly instalments (a kind of credit), the first of which averages 60% (deposit) of the sale price. The remaining 40% will be paid monthly. However, these monthly instalments can usually be paid by chartering the boat.
Some companies also offer a real income formula. This offers a higher income (and certain tax advantages), but requires a more specialised knowledge of yachting.
What are the advantages of choosing rental management for your yacht?
The first advantage of this option is that you get a good return on your investment. Another advantage is that you can sail on one of the company’s other boats (if yours is rented out when you want to use it, for example).
With yacht rental management, you also benefit from a monthly rent. As the company takes care of the rental, you don’t have to worry about it. The company will obviously find it much easier to rent out your boat than if you had to look after it yourself. So you have the guarantee (in principle) that your boat will be hired out when you’re not using it. These charter costs will offset the cost of financing the yacht.
Another advantage of this formula is that you no longer have to worry about maintaining or managing your boat. No more wasted time, expense or energy. All you have to do is sail.
Rental management will also allow you to sail just about anywhere. We’ve already mentioned it, but these packages allow you to sail boats other than your own anywhere in the world (provided, of course, that the company has branches in the desired locations). So you can have your boat in one port and go sailing elsewhere during the holidays.
Owning a yacht through rental management will allow you to limit the various constraints associated with traditional ownership. You won’t have to worry about your place in a port or about day-to-day maintenance.
The income you earn from chartering your yacht will be perfect for paying off the outstanding balance on the purchase, but you can do whatever you like with it!
As a general rule, a management charter contract allows you to sail your yacht for 12 weeks a year. The rest of the time, it will be rented out, which will save you money.
Buying a yacht these days requires a long lead time, as shipyards are overwhelmed. By using a management/leasing company, you can reduce these lead times considerably. These companies have a stock of yachts that they put up for sale regularly (they need to renew their fleet).
The important thing: choosing the right charter management company
It is essential to choose a company with a good reputation. Its reputation must also be satisfactory. So don’t hesitate to search the internet for all the information you can find. The more you know about the company, the better. This will save you from potential problems.
Don’t forget that your boat is a very valuable asset. So don’t trust it to just anyone.
It’s also important that the company you choose has an extensive network. To be able to charter your yacht, it must be visible and appreciated.
You should also check the financing options on offer. You need to be able to control your budget without the slightest problem. The company must meet all your requirements.
It’s also essential to take a look at the income on offer before you decide. A good company should offer you a substantial but realistic income.
You should also check the quality of the boats available. There should be a wide choice, and the boats should preferably come from recognised boatyards (they’ll last longer!).
The company must also offer you high-quality support and assistance. You need to be able to contact them easily and get precise answers quickly.
Finally, you can ask how the maintenance of your boat is organised. Does the company have a workshop? Does it use an outside service provider? Is it recognised? Is maintenance carried out regularly? It’s important to keep your yacht ‘in shape’!
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