If you would like to have your boat earn revenue
MYC is looking for quality yachts from the lower 30 ft to upper 40 ft range for its charter fleet!
Yacht Management Program
Is Yacht Management the right choice for you?
If you are a yacht owner considering a charter management program, first you need to decide if charter management is right for you and your boat. Below are three things to consider to help make this decision.
First, consider most owners don't use their yacht as much as they would like to. The average owner in the Northeast only uses their yacht about 20 days a year. The typical sailing season, Memorial Day to Columbus Day, is about 120 days. Charter management provides an opportunity for their yacht to earn revenue instead of being idle at the dock.
The second consideration of yacht management is the time you have for maintenance and upkeep. Many boat owners live inland and keep their boats more than a quick drive to the marina. When you have the time to go sailing; the boat is hot and the water is a little stale from being closed for 2 or 3 weeks, when you check your systems, you find something must be fixed before you can sail. Instead of using your precious time sailing, you are fixing, cleaning, and getting the boat ready. Under yacht management, when your yacht is not earning revenue, it is clean and ready for you. So you don’t need to ask yourself…
“Why do they call these pleasure boats when you spend so much time working on them?”
Third consideration of yacht management is the rising cost of dockage, maintenance and insurance. Combined this with the current economic squeeze, some owners reluctantly sell or try to sell their boats because they can no longer justify the time and cost involved for upkeep against the time they are able sail.
If this sounds familiar, the benefits of charter management is the perfect fit to offset your cost, and bring back the pleasure of ownership.
Why Mystic Yacht Charters?
Mystic Yacht Charters is locates at the Mystic Shipyard, in Mystic Connecticut, midway between New York and Boston and central to some of the best cruising locations in the Northeast. Newport, Block Island, or the bays of Eastern Long Island are all a day sail away.
Yacht owners place their yacht in Mystic Yacht Charters (MYC) management program knowing it will be managed by our hands-on owner. He has over 10 years’ experience in the charter business and respects the value of your asset. Your yacht will be meticulously cared for and maintained by Mystic Yacht Charter. For the larger repairs or services, MYC will work with the professionals at the Mystic Shipyard to insure their yacht is properly repaired in a timely manner. The owners know that when they come to cruise on their yacht, it will be clean and everything is working.
7 years as the warranty and customer service coordinator for Sailing Specialties, one of the nation’s largest yacht brokers at the turn of this century, MYC’s owner knows the value of personal service. He is committed to providing personal attention to the yacht owner in the management program through open communication and personal care of their asset.
YACHT CHARTER MANAGEMENT
This management program is designed to provide a reasonable income to the owner to help offset the costs of ownership as well as maintain or improve the yachts resale value through quality care maintenance. Simply stated:
The agreement itself is annual and renews automatically each year unless either party notifies the other, in writing of their intent to terminate the agreement by the anniversary date.
The charter rates for the yacht will be set in considerations to the age, size and value of the yacht, relative to competitive offerings. The owner’s share of the charter revenue is paid monthly after the completion of the charter. MYC is committed to providing quality yachts and quality service that will set us apart from the other charter operations in the Northeast. Our strategy is to provide the highest quality services, not necessarily the lowest charter rates.
The yacht owner is responsible for their normal operating expenses of dockage, insurance and maintenance. By setting the yacht up as a business, other financial advantages are possible, like writing off the operating costs on your taxes. The owner will receive a monthly statement itemizing all revenues and expenses.
Routine maintenance and upkeep will be performed by our staff and billed at our reduced rate of $45.00/hour plus materials. Services requiring special skills or equipment such as hauling, storage and major repairs will be performed by the Mystic Shipyard (MSY). As an incentive MSY is offering a 10% discount on dockage and all their service for at least the first year of management.
To maintain the best quality control of the charter fleet, all yachts under the charter management program need to be docked at the Mystic Shipyard during the charter season. Dockage at the current rates ($105.00 per Ft/Slip in 2012) is payable directly the Mystic Shipyard each year.
Charter Insurance Requirement:
A charter endorsement with a deductible not less than $1,000.00 but not greater than 1% of the yacht value is required. Insurance premium are the responsibility of the yacht owner. Before each charter a security deposit equal to the amount of the deductible is collected from the charterer. After the yacht is returned, MYC performs a thorough inspection, including the hull underwater. If all is well, the deposit is returned. Any loss or damage is covered by the deposit. If the loss or damage exceeds the deposit, the difference is covered by insurance.
Each yacht in our charter fleet has a standard inventory of basic safety and cruising equipment that the owner is to provide. This list is available upon request. We ask that the owner remove all other personal gear from the yacht.
The owner may schedule two weeks each year for his personal use. The boat is also available to the owner any other time that the yacht has not been chartered.
Regardless of what you may have read or been told, the only person that can accurately advise you on potential tax advantages or liabilities of your boat as a business is your personal tax accountant. Your opportunities will depend entirely upon your personal circumstances and the way your accountant can structure this arrangement in the context of your existing or planned business activities.
The foundation of the Mystic Yacht Charters management program is our commitment to quality and personal service.
Mystic Yacht Charter LLC
At the Mystic Shipyard,
100 Essex Street, Mystic CT 06355
PO Box 294, West Mystic, CT 06388
www.mysticyc.com Tel: 860 415-9224 email@example.com