This topic has a lot of meaning. It could mean is it better to charter the boat or own the boat, what does it mean to charter the boat or is it a good idea to put your boat in the charter as an investment. Today we are going to talk is it smart to put your boat in the charter as an investment.
This is a pretty wide area and jet quite simple. What do I mean by that? It is wider because there are a lot of factors that go into it. Such as, what boat do you charter, how old is the boat, what do you want to achieve with renting the boat how many weeks are you going to use it, and a few more.
But all that comes to simple math you agree for a percentage of charter management. What costs will be and then you calculate how many weeks the will boat do in the season, at what prices? Then you will get a close idea of what to expect to earn with the boat.
Every owner of the boat has different wishes and goals on what to do with his boat.
Some put the boat in charter so they have a safe berth place and the annual costs are covered by charter earnings. They use the boat the most during the season. In my experience, those owners are never satisfied with how people use their boats in the charter. Because they expect them to care for the boat as he will, but that is never the case.
It’s like renting a car, there are always people that don’t give a crap about rental cars. You need to expect that before you decide to give your boat into charter management.
There are exceptions of course, but I think you always have to be prepared for the worst and expect the best.
Some owners look at this just as an investment and to me are the best ones. They plan to invest the money into a boat put it in the charter to get some steady income from it and after some time sells it and repeat the whole process every few years. In my opinion, the boat should be in charter for five years maximum from the time it is created.
For five years boat is well maintained and looks new, it is easy to book that boat through the whole season after five years it is a still good boat, but booking starts to drop then you need to cut the prices to book the boat more weeks.
Some owners want the calculation for the boat and the calculation does not make sense. For example, the boat should make 23 weeks to break even, because of the leasing, boat price, and type of the boat. After all that they still want to put it in the charter and they are not happy. Those are the worst cases. Try to avoid it if you can!.
To conclude, if you want to put the boat into charter management as an investment and use it 2-3 weeks during low season and after a few years sell it and buy a new one and put it again into charter management. This is the best investment you can make today. Anything else I suggest you don’t do it because you will not be happy. It is better to get rid of your money into crypto or some other nonsense.