Charter management is a concept that increasingly attracts the attention of boating enthusiasts and those dreaming of owning a vessel but unsure how to make it profitable. Igor Karmelić from Croatia Yachting explains why charter management is an ideal solution for anyone who wants to enjoy sailing while simultaneously covering ownership costs. Below, we uncover how this option works, what it entails, and which boats are the most desirable for investment.
NP: For those who don’t know, Igor, what does charter management mean?
Charter management is the easiest way to buy and own a boat. The idea is that someone purchases a boat and places it in our fleet, where we rent it out. The boat owner uses the charter income to cover all costs, including marina fees, insurance, maintenance, and leasing. This way, almost anyone can afford a boat they otherwise wouldn’t be able to, especially since few people have more than 4–5 weeks a year to use their boat. For the rest of the time, the boat just accumulates costs and deteriorates. So, charter management is definitely an option for anyone who doesn’t spend 2–3 months a year on their boat. It truly makes the most sense to purchase a boat this way.
NP: What are the best options for purchasing a boat for charter management? What’s most in demand?
Practically everything is in demand. I always advise clients that when considering what to buy for charter management, they should start with what they like and see themselves using. Generally, the larger the boat, the higher the revenue. The share of costs in relation to revenue decreases with larger boats. However, I don’t recommend anyone go beyond their personal preferences and desires.
