I'm stongly considering buying a new boat and putting it into a charter fleet in Marina del Rey, CA. I'd like to hear from owners with boat in charter fleets in the area and find out how it worked out. My put the boat into charter you ask....where do I start? First and foremost, it's likely we will be able to use the boat one weekend a month and maybe and extra weekend a month hear or there. With a seven year-old daughter half our time is spent going to swim meets, piano lessons, etc. I'd like to have a larger boat - looking at a Catalina 310 or Hunter 326 but can't justify the expense with the limited usage. It seems the local charter market will support enough business (need about 120 days for break even cashflow - less if you factor in tax benefits). A couple of the charter fleets are pretty telling me to expect much more but I'd rather be looking at a worse case scenerio. I figure between positive cashflow contribution and extra payments to to the loan I can pay off the boat in 5 years or less and pull it out of charter for more personal use (assuming I have the time). Anyway, I'd appreciate comments (good or bad) on the subject. Thanks in advance.
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Bing
If you love your boat.......
......don't do it!!! We did it and three-quarters of the way through the contract, withdrew the boat. It was suffering too much damage and lack of maintenance by the charter operator. Of course, there are charter operators and there are "cowboys". It is a good way to pay off your boat, but make sure you do your research. Go and have a look at the boats in the various fleets - have a real good look. Good luck. Bing
......don't do it!!! We did it and three-quarters of the way through the contract, withdrew the boat. It was suffering too much damage and lack of maintenance by the charter operator. Of course, there are charter operators and there are "cowboys". It is a good way to pay off your boat, but make sure you do your research. Go and have a look at the boats in the various fleets - have a real good look. Good luck. Bing
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Bregan
The boat next to mine is chartered
It's a Cat 30, there was a chartered 2002 Hunter 32 in that slip for a while. These are chartered by Bluwater cruises in MDR. These boats go out all the time, even in winter. Most folks that use them are cool but I have had to save them from docking disasters a few times. Like I say mostly they come back the way they went out. I have a fleet of 7 or so around me in E-basin and have seen them hit other boats quite a few times. It's not intentional, of course, but there is a lack of concern about it (by the renters) when it does happen. They don't even check the damage.
It's a Cat 30, there was a chartered 2002 Hunter 32 in that slip for a while. These are chartered by Bluwater cruises in MDR. These boats go out all the time, even in winter. Most folks that use them are cool but I have had to save them from docking disasters a few times. Like I say mostly they come back the way they went out. I have a fleet of 7 or so around me in E-basin and have seen them hit other boats quite a few times. It's not intentional, of course, but there is a lack of concern about it (by the renters) when it does happen. They don't even check the damage.
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Larry W.
To charter or not...
Tony; There are many boats in charter in various So. Cal. marinas. Most boatowners know who they are and avoid them since most, not all, charterers are very inexperienced, and like it's been said, they don't own the boat, so dents, nicks and bent stanchions don't concern them much and if they fail to open the seacock, fry the raw water impeller and overheat the engine, oh well. I won't even talk about all the boinking going on in the Vee berth. I would take on a partner before I put a boat in charter.
Tony; There are many boats in charter in various So. Cal. marinas. Most boatowners know who they are and avoid them since most, not all, charterers are very inexperienced, and like it's been said, they don't own the boat, so dents, nicks and bent stanchions don't concern them much and if they fail to open the seacock, fry the raw water impeller and overheat the engine, oh well. I won't even talk about all the boinking going on in the Vee berth. I would take on a partner before I put a boat in charter.
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Tom
How about chartering, instead of owning?
I started out sailing in So. Cal at the Adventura charter club in Dana Point. It was great to sail on different boats and walk away worry free for a month or two between sails. We also used boats at reciprocal clubs in San Diego. We made friends at the club and brough old friends along. It was very economical to split the charter fee between 2 or three couples. It is the best way to gain access to nice boats at reasonable cost, and I think it is difficult, from a financial perspective, to justify owning a boat in So Cal unless you used it almost every weekend. Fair winds...Tom
I started out sailing in So. Cal at the Adventura charter club in Dana Point. It was great to sail on different boats and walk away worry free for a month or two between sails. We also used boats at reciprocal clubs in San Diego. We made friends at the club and brough old friends along. It was very economical to split the charter fee between 2 or three couples. It is the best way to gain access to nice boats at reasonable cost, and I think it is difficult, from a financial perspective, to justify owning a boat in So Cal unless you used it almost every weekend. Fair winds...Tom
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DMJ
Charter
I'll weigh in here. I have two boats in Charter. I have owned an aircraft before with partners. I would rather have a boat or aircraft in a well run charter operation any day, than suffer the difficulty of the average partner, and I have had a few. The issue of charter has to do with the control the charter company places on the charterer (training, etc.) If that is reasonably well executed, then the risk to the boat is not a significant concern. I keep a close watch on the condition of our boats, and the maintenance and quality of the charter turn arounds. For the most part we have been pleased. Is it like we would take care of it if it were just us? Not always, but the charterers are not the only ones who have put a streak on the gel coat from a bad docking experience. And we suspect that a partner might likely not do any better job than a chartere will. The up side to the charter management, is that I have someone looking the boat over when it returns. That would not happen with a partner, and next time you want to sail might be the time you find out something quit working or broke. Used to happen to me all the time with airplane partners. In charter, my boat is ready to go when I'm ready to go. And, I'm softening the financial impact of owning. In the end, I'll have deferred a lot of cost, and still have a pretty good boat to enjoy for many more years. Finally, this is the first I have heard that excessive boinking in the Vee berth was a factor in resale. In a couple years of chartering, we have not noticed any unusual wear and tear in that area of the boat, but have always appreciated the strategic height of the cushions. Dan Jonas (S/V Feije II)
I'll weigh in here. I have two boats in Charter. I have owned an aircraft before with partners. I would rather have a boat or aircraft in a well run charter operation any day, than suffer the difficulty of the average partner, and I have had a few. The issue of charter has to do with the control the charter company places on the charterer (training, etc.) If that is reasonably well executed, then the risk to the boat is not a significant concern. I keep a close watch on the condition of our boats, and the maintenance and quality of the charter turn arounds. For the most part we have been pleased. Is it like we would take care of it if it were just us? Not always, but the charterers are not the only ones who have put a streak on the gel coat from a bad docking experience. And we suspect that a partner might likely not do any better job than a chartere will. The up side to the charter management, is that I have someone looking the boat over when it returns. That would not happen with a partner, and next time you want to sail might be the time you find out something quit working or broke. Used to happen to me all the time with airplane partners. In charter, my boat is ready to go when I'm ready to go. And, I'm softening the financial impact of owning. In the end, I'll have deferred a lot of cost, and still have a pretty good boat to enjoy for many more years. Finally, this is the first I have heard that excessive boinking in the Vee berth was a factor in resale. In a couple years of chartering, we have not noticed any unusual wear and tear in that area of the boat, but have always appreciated the strategic height of the cushions. Dan Jonas (S/V Feije II)
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Steve W.
A Benetreau rep told me that for each year of
charter service, the boat will get 7 years of private use wear & tear. After chartering in the BVI's 4 times with the same charter company and checking out the boats we used in previous years, he may not be very far off the mark. I noticed a 2001 Beneteau 331 blew its engine and the owner had to replace it...not covered by the charter agreement. Takes a lot of charters to cover the cost of a new engine & installation, plus downtime losses plus servicing the loan, etc.
charter service, the boat will get 7 years of private use wear & tear. After chartering in the BVI's 4 times with the same charter company and checking out the boats we used in previous years, he may not be very far off the mark. I noticed a 2001 Beneteau 331 blew its engine and the owner had to replace it...not covered by the charter agreement. Takes a lot of charters to cover the cost of a new engine & installation, plus downtime losses plus servicing the loan, etc.
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Debra B
check the archives for charter stories
Also, DO NOT sign a charter contract as is. This is their going-in position not their bottom line. Last time I chartered I picked up a copy of the charter agreement just for kicks. It included a 20% markup for handling on any parts included in repairs. 3 or 5% would have been more appropriate. (This was just a 20% markup, freight labor were extra.) Other little things but this sticks in my head. Look into buying a boat coming off charter for less money - you know what you are getting, and no one will sink it. Or just look at the used market generally. (They don't make 'em like they used to!)
Also, DO NOT sign a charter contract as is. This is their going-in position not their bottom line. Last time I chartered I picked up a copy of the charter agreement just for kicks. It included a 20% markup for handling on any parts included in repairs. 3 or 5% would have been more appropriate. (This was just a 20% markup, freight labor were extra.) Other little things but this sticks in my head. Look into buying a boat coming off charter for less money - you know what you are getting, and no one will sink it. Or just look at the used market generally. (They don't make 'em like they used to!)
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