I become a charter yacht owner?
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.
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.
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
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.
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.
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.
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
my yacht a second home?
Under current tax laws, your yacht may
be designated as a "second home"
if it has a galley, head
and sleeping accommodations. As a second home,
the interest on the mortgage may be deductible.
See your tax advisor.
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.
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.
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.
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
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.
if I want to use the boat?
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.
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.
Charter and Ownership references are
available upon request.
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!