Southwest Florida Yachts
Passport to yacht charter ownership.

Charter Ownership Questions and Answers

Can I become a charter yacht owner?Sunset photo
Anyone who wants to own a fine yacht and have the cost of ownership reduced by charter income will want to consider this program. This program gives the yacht owner not only charter income, but also guarantees that the yacht will be properly maintained and ready to cruise at all times. So, when you want to use your yacht, she will be ready for you.

Will chartering cover all my yacht's expenses?
As a general rule, charter income should cover most of the cost of dockage, insurance and routine maintenance, but not all. Your charter proceeds may also contribute substantially to your yacht's P&I payments. No matter what, charter yacht ownership produces income that would not be there under private ownership.

What are my "operating" expenses?
Your expenses are basically the same as those of private yacht ownership. Dockage, insurance and maintenance are fixed costs, whether the boat is in charter service or not. There are no "hidden" costs such as advertising, marketing, commissions, or "turnaround" fees. SFY pays for all of those. We will be happy to give a projection of revenues and expenses for the size and type of yacht that you choose.

What will my charter income be?
You will receive 50% of the gross charter revenues on your yacht. Other companies will pay me 70, 80, or even 90% - What about that? Reading the "fine print" will show that you will be charged for such things as advertising and marketing on a percentage basis, toll-free calling and office overhead, and/or cleaning and "prep" fees to make your boat charter ready. The net result is that your "90%" is reduced substantially by all these other costs.

What about dockage?Manatee photo
You will be billed for monthly dockage charges directly by the marina. Current dockage rate information is available by calling Tarpon Point Marina at 239.549.4900.

What about insurance?
SFY maintains a fleet yacht policy which includes full hull coverage, $300,000 liability, Confiscation and Breach of Warranty coverage. Our rates are among the lowest in the industry. Current insurance rate information is available upon request.

What about the tax benefits?
The SFY programs are designed and intended to successfully operate independent of tax benefits. There are still significant tax advantages to owning a charter yacht. Your charter revenue is offset by deductions for operating expenses, depreciation and interest deductions. Yacht chartering is usually considered a "passive" activity. We recommend you consult your tax advisor to discuss your particular situation.

Is my yacht a second home?
Under current tax laws, your yacht may be designated as a "second home" if it has a galley, knot arthead and sleeping accommodations. As a second home, the interest on the mortgage may be deductible. See your tax advisor.

Do I have to buy a new yacht?
Whether you plan to purchase a new or previously-owned yacht for placement in our charter program, we will work closely with you. In order to place a new or pre-owned yacht in the SFY program, we must act as your broker in handling your purchase. This will insure that the yacht you are purchasing will be marketable from a charter perspective and will be fully equipped for charter service. Your SFY broker will also insure that you are getting the best value for your dollars in the boating marketplace.

What about financing?knot art
We do not recommend any one marine lending company for your vessel purchase. As a general rule, a down payment of 20% for new yachts and 25% for used yachts is usually required. Since every company is different, you will want to research a variety of companies to commpare the application process, current rates and loan requirements. You will want to choose a lender with whom you are most comfortable.

What if I already own a yacht that I want to charter?
Prior to being accepted into the SFY program, your yacht will be inspected for its charterability, equipment and overall condition. You will receive a proposal concerning necessary maintenance and additional equipment which will be required for charter service. In addition, a one-time Management Fee of $500 is charged to cover the cost of handling the boat's entrance into the fleet. This fee is applied to initial set-up, advertising and promotion of your yacht as part of the SFY fleet.

How do I know my boat will be well-maintained?
Check us out. We encourage you to check with current and past owners concerning any questions you may have. In addition, you may inspect your yacht at any time. We are available seven days a week to discuss your yacht's maintenance program and to answer any questions you may have.

How much does this maintenance cost and when do I pay for it?
SFY will maintain your yacht at rates approximately 20% less than commercial rates. Most maintenance is performed by SFY personnel for two reasons: to keep your expenses down, and to insure continuity of maintenance by marine professionals. Our staff will take care of every aspect of your yacht's maintenance program, from varnishing to oil changes; from rigging to annual haulout; and from installation of equipment to de-commissioning. A list of our current labor rates is available upon request. You will receive monthly computerized invoices and statements, with detailed explanations of all parts and labor charges to your yacht. Few companies provide such complete business records to their yacht owners. At SFY, attention to detail is standard practice.

What if I want to use the boat?Kids with manatee photo
Just give us a call. We'll have your yacht ready for you. We ask that you give us as much advance notice as possible. Should we receive a request for a charter during your planned vacation time, we will advise you of that request and allow you the opportunity to change your cruising plans in order to maximize your charter revenues. If you are unable to alter your vacation dates, we will refer the charter request to another yacht in our fleet. Due to the demands of our busy winter season, we ask that owners not "block out" personal time for more than two weeks at one time between December 15 and May 1 of each year. There is no limit on the amount of time you may use your yacht each year. However, we suggest you avoid peak charter weeks such as holidays.

What if I want to sell my yacht?
We can help. We offer complete in-house brokerage services to handle the sale, from marketing to closing. We advertise in national boating publications. We use traditional advertising, our E-Newsletter and Social Media to market the vessels we have for sale. An added bonus is the fact that we know your yacht. We can provide complete maintenance records to any prospective owner. Your charter contract may also be transferred with the sale of the boat, should the new owner choose to leave the yacht in charter service . Furthermore, your yacht can continue to earn charter revenues while she is being marketed for sale.

What about references?
Charter and Ownership references are available upon request.

Should I investigate other companies?
Absolutely. Visit all of the companies you are considering. Ask questions. Observe their operation. There is often a vast difference between a "slick" sales brochure and close, personal inspection. We invite you to compare Southwest Florida Yachts to any other charter company. We are sure you'll agree that we're hard to beat!

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Southwest Florida Yachts
6095 Silver King Blvd • Cape Coral • Florida 33914
(239) 656-1339 (800) 262-7939 Fax (239) 656-2628

Tarpon Point Marina 26° 32' 14" N;  82° 00' 06" W

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