Sail and Stay - Malta

CHARTER MANAGEMENT F.A.Q

What is Charter Management?

Charter Management is a means of generating income from your yacht when you are not using it.

Why would I want to charter out my boat?

There are a number of advantages to chartering your boat.

· You can generate income from your boat when it would otherwise be idle.

· The income you will receive can be used to reduce the cost of ownership or help subsidise a more expensive boat.

· If it’s chartered out regularly it can be considered a business allowing annual running costs, repairs and maintenance to be reclaimed. VAT can also be reclaimed on a new boat which makes it cheaper to purchase and normally more than covers the cost of preparing your boat for charter.

· The boat will be regularly cleaned and repaired so you can just turn up and sail.

Who owns the yacht?

You do, we just charter it from you and pay you for the privilege.

How much income can I earn?

That depends on how much you make it available to us, how old it is, how much equipment is has on board, and the type and size of the boat. Expect a 38 foot new yacht to earn you around €900 for a 7-day high season charter; a similar five year old boat could still earn around €750.

What kind of boats are you looking for?

We are looking for 36 to 50 foot modern sailing cruisers by the main brands who are Bavaria, Dufour, Beneteau and Jeanneau. Preferably with bunk beds or comfortable cabins for 6 people.

How much of the charter amount do I receive?

We split the charter amount 50/50. If we use your boat for training we will pay you a daily rate.

Can I use my boat when I want to?

Yes, if we know you want to use your boat we will not take bookings for that period. You can phone us or use our dedicated web-site to tell us when you wish to use your boat. When you are using it you cannot be generating income so you will need to strike a balance between charter and personal use.

Who will be using my boat?

When Under charter we require 2 experienced persons on-board, and the skipper must hold a minimum RYA Day Skipper practical certificate. We always ask for proof of any qualifications and experience. Clients who are not suitably experienced can still charter, provided they pay for one of our skippers to be on-board.

If we use your boat for training one of our fully qualified RYA instructors will be on-board at all times caring for your boat.

Can I elect to only charter my yacht for skippered charter or sailing school use?

Yes you can ask us not to bareboat charter your yacht. This means it will only be skippered by one of our highly qualified and experienced instructors. Be aware that this will reduce your income potential.

What happens if the charterer damages my yacht?

We insist on a damage deposit which covers the excess on your insurance policy so this can be used to fund any repairs or losses. If the cost of the damage exceeds the deposit amount a claim will need to be made on your yachts insurance policy.

To ensure that your boat is fit to charter, maintenance may need to be carried out at short notice, sometimes in between the boat being returned from one charter and going out on the next. This period can be as little as 3 hours so it will not always be practical to consult you to obtain permission for expenditure. For this reason we reserve the right to make repairs up to an agreed budget, normally €250. These expenses will be added to your monthly statement and deducted from any moneys owed to you.

Can I skipper my boat when on charter?

Generally, no. It is unlikely that you would be qualified or insured to act as skipper. Even though it is your boat, when on charter it is the law that only suitably qualified commercial skippers are allowed to be in charge. Our skippers are very experienced, highly qualified and have been professionally trained to deal with all sorts of emergencies.

Do I need to sign an agreement?

Yes, a formal agreement is drawn up between us.

Can I cancel the agreement?

Yes. We require just 3 months notice but you must honour any bookings already made.

What must I do to my boat to ensure it is fit for charter?

All vessels used for commercial use must comply with the Maritime and Coastguard Agencies (MCA) code of practice which means it must pass an inspection to ensure it is safe and properly maintained. This is mostly a case of adding safety gear and equipment and making upgrades to gas, heads and engine pipe work as well as adding a 3^rd reef to the main sail. The boat will need to be inspected by an MCA surveyor both in and out of the water. It will also need to be inspected periodically to ensure it continues to comply with the code.

What will it cost to code my boat?

This depends on the boat and how old she is. A modern production cruiser built within the last 10 years should be straightforward to code. We can provide an estimate on request but the cost is likely to be in the region of €4500 to €7,000, depending on how much equipment you already have on board. We have experience of coding vessels and can give advice or undertake work for you.

I already have some safety equipment, can I use this?

Yes almost certainly. Most safety gear available complies with the MCA codes or can be modified inexpensively. However, coded vessels could require a larger or second liferaft which you probably won’t have. You can rent these for about €400 a year rather than buy them as they can be expensive (€2000 plus).

What costs am I responsible for?

You are responsible for coding the vessel, annual berthing fees, insurance, any mortgage or loan repayments, storage fees ashore, winter maintenance and any repairs and renewals required to ensure the boat is fit for charter.

We will pay for any expenses incurred during a charter such as fuel, gas and minor breakages.

Will my existing insurance policy cover charter?

Almost certainly not so you must inform your insurance company before your boat can be chartered. Some insurance companies will not insure charter boats. We are happy to recommend insurance companies that will cover your boat.

Do I have to keep my yacht at a specific marina?

We prefer that your boat is kept with our other boats at Grand Harbour Marina which happens to be one of the safest marinas in Malta. Other Marinas will be considered but this may cause complications for collections and maintenance.

Can I leave any personal possessions on board during a charter?

The owner’s personal kit should be either removed or stored out of the away prior to charter in case it becomes lost or damaged.

Do I have to setup a business?

No but you will probably benefit from doing so. Any income from charter should be declared on your tax return. You should speak to an accountant who can offer advice.

Do I have to register for VAT?

No but there can be advantages if you do, the most obvious being the reclaiming of VAT on the purchase of a new yacht. Be aware that when you sell the yacht you will need to charge VAT on the sale price (not the purchase price). If you sell through a yacht brokerage they will do all of this for you.

Do I have to stick branding on my boat?

No. However, a lot of charter enquiries come from seeing our boats out on the water so you will generate much more interest, and therefore more income, if you let us brand your boat. Branding can include our website address on the hull, boom or sail cover, our logo on the bow or simply our logo on removable dodgers. It’s up to you and we will cover the cost of branding and cost associated with the removal of our branding at the end of the agreement.

How do I get paid?

Because we take the charter booking, payments are made to us by the client. We will send you a monthly statement of charter activity that will detail any moneys owed to you. You must then invoice us, adding any VAT if applicable, and we will settle your account promptly, normally within 14 days.