Experience that spans over almost two decades, 140 vessels in five charter bases along the Croatian coast and many satisfied clients have enabled Croatia Yachting to win the title of the best charter company in Croatia. The key to a successful business is in their hands, and the door will be unlocked for you by Igor Karmelić and Ivan Grabovac, yacht sales advisors in the team, who always give the right answers
This time our focus is on charter management, a special program that will effciently make you the owner of a vessel. Whether you want to buy a sailboat, a catamaran or a motor yacht, with the Yachting World Charter Management Program and special purchase conditions, in addition to obtaining a unique lifestyle you can also gain profit, which makes the investment even more attractive.
Where do you offer charter management services?
We represent vessels from the Hanse group, which includes the brands Hanse, Dehler, Sealine, Fjord and Ryck, and Bali Catamarans, and we are also one of the largest charter companies in Croatia, where we currently have five charter bases. Therefore, we offer charter management services in Biograd na Moru, Šibenik, Seget Donji (next to Trogir), Kašteli and Dubrovnik.
Igor Karmelić i Ivan Grabovac
Do you have any clients from Serbia who own vessels in your fleet?
We have clients from all over the world, including Serbia.
Igor Karmelić i Ivan Grabovac
Are there any restrictions for Serbian citizens related to investing in charter management in Croatia?
No, there aren’t any. Every vessel that is chartered in Croatia should be registered under the flag of a country from the European Union, and for VAT refund purposes we recommend registration to a company. For our clients, we organize the setting up a company in Croatia as well as financing through leasing in Croatia.
Igor Karmelić i Ivan Grabovac
Is it important to have knowledge, or a license to sail, in order to become a boat owner?
No such knowledge is required. Of course, clients can hire a skipper through our company, but they can also arrange training for acquiring sailing skills, if they wish.
Igor Karmelić i Ivan Grabovac
What can a client expect from a charter management program?
It largely depends on the type and model of vessel that the client/investor chooses. However, with any type of vessel you can primarily expect a care-free type of vessel ownership, considering that we will take care of all aspects that typically bring stress and obligations to the owners. We deal with mooring, maintenance and preparation of the vessel for the client’s annual vacation. Of course, they can also expect covering the costs of moorings, insurance and maintenance, while in the case of sailboats, catamarans and certain models of motor vessels, it is also possible to cover the costs of financing the purchase of the vessel, and even make a profit.
Igor Karmelić i Ivan Grabovac
What is the biggest dilemma or concern that potential clients have before making an investment?
At the very start, the biggest dilemma is about choosing the boat model, but with our experience, we always find what suits each customer’s needs in terms of boat use and also in terms of financial goals. The next dilemma is whether our revenue and cost projections are realistic, and whether the vessel will actually achieve the targeted number of weeks in charter. Our projections are based on 18 years of charter experience and are largely realized, and we always take the pessimistic approach to our projections, so an extra week comes as a nice surprise. Clients often think about what happens at the end of the charter management program, whether they will be able to sell the vessel and what price they will achieve. We always provide our clients with an exit strategy in the form of selling their vessel, and we are also very successful in selling pre-owned vessels. Before buying a new vessel for a client, we estimate with high level of accuracy the price that will be achieved after the desired period in charter management.
Certainly, throughout the whole process there are numerous additional questions to which we can provide answers. For clients who would like to receive information from individual users of our charter management services, we can also offer contact with the existing owners of vessels in our fleet.
Igor Karmelić i Ivan Grabovac
What are the main reasons for investing in charter management?
Buyers who are interested in sailing and want to own vessels most often invest in charter management. As you know, owning a vessel brings along certain costs and involvement, it also requires certain knowledge, so this is one of the main reasons why customers start thinking about charter management. In addition, people who own vessels for private use only rarely use their vessel for more than 4-5 weeks a year. Moreover, upon arrival, they have to additionally prepare the vessel for their vacation. In charter management, we are the ones who take care of those aspects of ownership, and the charter income will cover all mooring, insurance and maintenance costs. The investment side of charter management is certainly an additional motive that carries equal weight. With most vessels, additional profit can be expected from charter income, which can be significantly higher than the costs themselves. Based on our experience, we will suggest models and optimal vessel specifications to meet their expectations regarding that second motive.
Igor Karmelić i Ivan Grabovac
Why would a customer choose Croatia Yachting as the company that will take care of their vessel?
We are one of the largest charter companies on the Adriatic, and we have also been awarded on multiple occasions. For 2022, we won the title of the best charter company in Croatia, once again. At the same time, we are a charter company and an authorized representative for numerous brands of vessels, so we are able to offer these brands under special conditions and adequately maintain them so that the entire investment makes sense. In our 18 years in charter, we have become a recognizable brand, capable of providing the highest quality of service and excellent booking results. We base our business in charter management on complete transparency of income and expenses and high standards of vessel maintenance, in order to preserve the highest possible sales value.
Igor Karmelić i Ivan Grabovac
What vessels do you offer as part of the charter management program?
In charter management, we primarily have Hanse sailboats and Bali catamarans, which are the most profitable as an investment, and there are also Sealine and Fjord motor yachts.
Igor Karmelić i Ivan Grabovac
How long are investors allowed to use the vessel themselves?
Within each charter season (from 1st April to 31st October) you have the right to use it ten weeks with a limit to a maximum of three weeks in July and August all together, and a maximum of three consecutive weeks. Of course, the more weeks you use, the less income you can expect. We recommend up to three weeks a year, one week in charter season and two in post season. The best option is to use the vessel in periods when it is not booked for charter guests. Outside the charter season, there is an option of using additional weeks.
Igor Karmelić i Ivan Grabovac
How does cash flow work in charter management?
A vessel rental contract is signed with the owner of the vessel, whereby the vessel is given to us for use, as well as a vessel maintenance contract, which defines our maintenance obligations.
Igor Karmelić i Ivan Grabovac
The owner (his company) issues an invoice to us on monthly basis for all charter weeks booked during that month, and then covers maintenance, mooring, insurance and financing costs from their income. Of course, behind every company we establish for a vessel owner is an accounting agency, which will take care of all financial flows and administration, as well as tax reporting.
Is it possible to obtain financing for the purchase of a vessel for charter management?
Yes, it is possible to obtain leasing financing for Croatian companies for up to seven years. The company can be an existing company or a start-up company, and financing can be obtained for both new and used vessels on equal terms. As we mentioned earlier, we will organize the establishment of a Croatian company for the client.
Igor Karmelić i Ivan Grabovac
Do you have any recommendation for those considering the option of joining a charter management program?
If clients are already thinking about buying a boat, they should definitely consider the option of charter management, because as we said, boat ownership brings with it certain costs and obligations, and we make boat ownership really simple. If they consider charter management as a form of investment, the profit that can be made is certainly not negligible, and it is also an investment in lifestyle, because the investor will at least occasionally use the vessel for their annual vacation. I would recommend that they contact us without any obligation or commitment and we will be glad to answer all their questions.
Igor Karmelić i Ivan Grabovac
