Should You Charter Your Yacht?

When you look at the rental and shareable trends occurring in every part of our society today—Uber, Lyft, Airbnb, VRBO, etc.—we can agree that these trends are impacting the yachting industry as well.

Today’s new generation of yacht buyers is interested in more efficient use of their assets. To own something that may only be used a few weeks each year is not an option, and that’s not only true for yachts, but for airplanes and even vehicles as well.

A properly managed yacht can bring several key advantages to today’s owner. Income is one of them, and it is not uncommon for a properly managed yacht to bring in hundreds of thousands of dollars each year, and even millions per year for larger yachts.

Yacht broker and expert in the field, Alex Clarke, goes so far as to say, “Over 85% of all large yacht owners have chartered a yacht prior to purchasing their first yacht. This is an extremely high percentage and proves that with the right yacht and crew it is very likely that a properly run charter program is a catalyst in transforming guests into owners.”  

In addition to revenue, there are various business deductions that apply to yacht ownership, including millions of dollars in depreciation and expenses over a five year period.

2018 Hargrave Raised Pilothouse | MB3

Buying a new or used superyacht will most likely cost the owner several million dollars. While some older yachts around 80 feet can sell for six figures, newer models will certainly exceed a million and new yachts over 100 feet will cost in the neighborhood $1 million per 3.3 feet. According to Forbes magazine, on average a 100-meter (330 foot) superyacht with a top speed of 25 knots and 50 crew members should cost around $275 million. They can often cost significantly more.

Learn more about our Charter Management Program: