Thoughts on chartering?

[Insequent]

The first thing that strikes me is that its a relatively small boat to use for crewed charters. I get that it has great cabin separation. But assuming the guy uses the guest cabin he can take just one couple out. I just can't see that turning many dollars.

I'd think a setup where captain (plus partner as cook) and accommodation for two paying couples is where a reasonable crewed charter boat would start.

 

[Hippocampus]

On a pragmatic level. I have
Boat clothes
Boat tools
Boat paraphernalia (chargers, toiletries, personal hygiene etc.)
That stuff stays on the boat even though much of it is duplicated for the house. When we sold our last boat that stuff required two SUVs filled to the brim for three trips to empty the boat for the next owner and we left him all our spares filters, fluids and such.
If you own your own boat you fill it with your stuff(apologies to George Carlin). If you charter that stuff needs to be removed brought home or put in a shoreside container. The charterer will have their stuff (admittedly trivial amounts compared to your stuff but you still need to empty the lockers and closets for it). Major hassle. We live in a tourist destination. For years lived on the boat during tourist season so could have rented the empty house for big money. Choose not to do it mainly because of the hassle of prepping the house (removing our stuff and valuables j for the rentals and then restoring the house for us. Also the house would be unavailable to us when rented. Didn’t want to give up the flexibility. Same with a boat. Friends are building a house. It taking longer than expected. Not a biggie as they just moved into the boat. Other friends had storm and water damage to their house. They too just moved on to their boat as repairs are ongoing.
BTW my NT42 is a great couples boat with two state rooms and two heads. Beyond that there’s a pull out double in the salon and a decent berth in the pilot house. Works for me, the bride, daughter, son in law, two of my grandkids, one of my wife’s and no hot bunking. Could charter two couples and a captain. Still wouldn’t do it as the risks and finances don’t offset the inconvenience.

 

[Muirgen Afloat]

I think a boat is hard enough to keep in good condition when it's only you breaking it.

I agree with this.. so many things could go wrong that are hard to catch in a timely manner even when you know the boat. Catching some of it soon could be the difference between fixing a small part or replacing a motor!


I've met people who charter boats and wonder who pays for things when they go bad? Is it just on the boats owner? Does the charter company kick in anything or do they just tell the owner to get it fixed? Who pays for the canceled charters if there are any?



So many questions and none of them positive for chartering my own boat.

 

[garbler]

Years ago my business partner and I chartered out our Bristol 42 for a week through a broker we both knew well and did business with. She ran a bareboat charter business in Camden, Maine and had a first class reputation. She assured us her contract was solid and she good vouch for the charter parties. Our first two charters went smooth with no problems then the third charter with a doctor and his family ended this venture for us.

The party met with my partner in Marblehead harbor where they were walked thru the boat and shown all systems etc. and provided three pages of procedures and Station Bills. Tanks were topped off ready to go. A week later they called to say they had a great time but due to time constraints they couldn’t return to Marblehead and left the boat on a mooring in Eel Pond/ Woods Hole. Big headache for us as it was Summer on the Cape so three hour drive plus shuttling a car back. I found the boat with tanks half full, interior a mess, house lights on so battery switches never closed. Two rotten fish in the reefer, one toilet full of you know what and worse the starboard windshield broken. We were told one of the kids grabbed a fender and swung it onboard still tied off so it swung into the windshield. If that wasn’t enough we later found they dropped the tender OB overboard and just left it without pickling so it was seized. A mechanic we knew at Martha’s Vineyard told us about it and how they were in a hurry and told the mechanic they didn’t have time to fix and it was insured anyway. What a mess and so time consuming

Broker paid us for 200 gal of fuel but that was it. She was a good customer so we both decided to eat the rest. We had no coverage for chartering ( stupid ). But in hindsight we should have had our attorney review the contract cause there were holes in it you could drive through ( stupid x 2 ). That was the last charter and though we realized a bit of a tax write-off it sure wasn’t enough to warrant this experience. If you do this be very cautious.

Rick

 

[Delta Riverat]

I would not do that kind of deal. I would lend my boat to a Captain I knew and he would be running the boat, not an unknown group of joyriders.

 

[firehoser75]

Miguel,
Placing your boat into "charter" is a double edged sword! For some people, who look at it as a business, it MAY work out fairly well. For others, especially who more view their boat as their "baby", not so much!

Our first boat, a Bavaria 36 sailboat, we put into a charter fleet for one season (only). For us, we did not like the restrictions on our access, and the inevitable "wear and tear" that the boat took. We found that in the end, it also did not financially make that much sense for us. We found that the "extra" costs: maintenance (done by them and more often due to higher usage), repairs, moorage (at their specified marina), insurance cost increase, the charter company's percentage, etc. left little for us!! From our perpective, this was a great deal for the charter company, and we provided them an asset that was for us going down in value due to increased wear and tear, damage, higher than normal engine hours, etc. For us, this was not what we thought going in (a bit naively).
Let me also say that the Charter company and their owner were great to us. They were honest, looked after our boat as well as they could, and tried to minimize "issues". However, things happen, like a customer who grounded our boat coming back into the home marina at low tide even though they were warned by the company beforehand.
Also, you are the one with the valuable asset and the others are making money off your asset while you take ALL the risks.

Personally, I would not put a Nordic Tug into charter, but that is just my personal belief, which is apparently held by all of the other responders so far!!!!

Good luck with your decision,

 

[High Wire]

We were landlords of 2 rental properties. After the second time my wife and I agreed never again on something we liked. Never on a boat. NEVER!

 

[NWboater2]

Miguel I have visited your site a few times, I am sort of in the market for a trawler like yours but am on Puget sound. Nice boat. Interesting pontifications!
You could put your boat in a charter program like NW explorations out here —

https://www.nwexplorations.com/ownership-program/

If that s not an option I agree I would not put it in charter with just some guy. Or maybe any one guy
But it seems like you aren’t using it , but don’t really want to sell it. Program like this might let you defray costs and use it a couple of weeks a year. while the hours aren’t going up on that sweet motor, the years are. Could also list it and sell outright before this wave is over. Good luck!

 

[Gilhooley]

I want to sincerely thank everyone here to took the time to share their opinion, and in particular Peter for his really thorough argument against (for me) seizing the opportunity to become a charter owner/investor... victim I was initially (nonspecifically) negative and was looking for a clear counter argument if there was one... clearly there is!!!! Might turn out to have been a moot point in the end.. a potential good lead came in tonight. Again, appreciate everyone's helpful comments.

Miguel

You would be going into business with two people who do not share your concern or financial interest in your boat - the captain, and the customer. Not only is there maintenance, but wear/tear and depreciation. What happens if the generator dies? Or a raw water impeller crunches and the engine overheats and blows the head gasket? The AC unit stops working even though its almost new? Is that maintenance? Normal wear/tear? Scuffs from docking - does it get a quick buff and paint so it passes the 10-foot test, or does it get a professional repair at $5k? What happens when stuff gets lost - you are 90% sure it was there, but can't prove it? You are pledging a $400k asset, what is your protection against a disagreement with the 100T guy, especially since he will have physical control of the boat? Your interests are not wholly aligned.

If you're interested in chartering your N42, find a reputable charter operation with proven maintenance program. Its a highkt desireable boat for charter and you should expect a warm reception.

A 100T license gives zero indication of experience and capability, just that someone says they spent 720 days on a vessel in some capacity (assuming their sea time is legit). And certainly says nothing about their integrity or marketing prowess.

While not a charter business, I effectively went into a boat related business with a marine company to restore my Willard 36. All was fine for a while. In the end, they admitted they owed me money, admitted the work they did was garbage. But they were unable and/or unwilling to make it right and were seemingly fine with my building a website describing what a bunch of hacks they are. Took me a while to unwind from them because they had control of the boat. Really bad feeling on my part. Www.NizaMarine.net.

Lots of downside risk. Not much upside for you.

Good luck.

Peter

 

[OldDan1943]

This is a blunt example.

Hi, I'm a serviceman and need someone to look after my wife while I am overseas for 2 years.

Sorry folks but it has happened way too many times.

The only way I would put my boat in charter is if I had 3 or more boats and was in the charter business and chartered out the boats I didn't like.

 

[tpfbdf]

... chartered out the boats I didn't like.

LOL!! I love it!!!

As for Airbnb... My wife and I have stayed on a few different Airbnb boats over the years. Most we had the boat to ourselves and it stayed tied to the dock. On one we got the cabin up front while the captains (yes... husband and wife... both 100T captains) slept in the aft stateroom. That was actually more like a two night, one day, charter because they took us out sailing. Of the ones that stayed tied to the dock... the owner came down and gave us the low down on everything... and was local and able to answer questions (and keep an eye on things). All-in-all... good experiences. (For one of them... the slip was right down town Ft Lauderdale... very convent!)

But I agree with everyone else when it comes to giving your boat up for charter... way to many down sides.

Peace - Pete