Charter management gives you the opportunity to buy a boat (new or slightly used) with least possible investment and costs. Don’t mistake charter management program for money making investment opportunities – the idea is not to make money but to allow you to buy a yacht with little investment and charter income that should cover most of your leasing and boat maintenance costs.
Boating has turned into a big business over the past few years, especially in Croatia where the number of charter companies, chartered yachts and charter clients has multiplied since 2005 (from 324 to 780). Such growth is partially due to stricter regulations that marked the end of black charter market, but still, the striking growth is undeniable. Croatia has established itself as one of the most attractive charter grounds in the world and provides excellent opportunities for development of charter management.
If you have no experience in the boating business, here is a small step-by-step guide to charter management.
1. Pick A Yacht
Once you have decided that you are going to buy a yacht, you have to choose which one. There is a huge choice of new and pre-used boats in the market, and you should take your time and carefully examine all pros and cons. When deciding upon a yacht, pay attention to what you need and want. Don’t be led by ideas of big profits – that is not charter management. Pick a boat that you want to own and that fits your needs and opportunities. We can give you some advice, but we can not decide for you.
2. Find A Yacht
When you have decided which yacht you want to buy, let our brokers help you find it. Regardless whether you want a new or pre-owned boat, our team will search the market and make you several offers.
3. Find A Leasing Company Or A Bank
Now, you have found the boat you want to buy. If you don’t have enough money in your account, you should contact banks or leasing companies for a loan. We can recommend you several respectable banks in Croatia, but you have to take care of the financing opportunities on your boat.
Once you have come to an agreement with the bank, you need to close the purchase deal with the boat owner. In order to transfer ownership of the boat to your name (or to register it for the first time if it is new boat) you need to be either a resident of Croatia, or to have a company registered in Croatia. If you want to charter your boat in Croatia, she must be registered to a company (not individual). This means you need to register a company in Croatia. The process of registering a company here is not complicated and it will cost you about 3,500.00 – 4,000.00 EUR.
If you want to give your boat to charter management, you must have a company under which she will be registered. We can not register her on our agency.
5. Buy The Boat And Acquire Necessary Licences
After registering a company, you close the deal with bank and the boat owner. Now the yacht is yours to be registered and insured. All yachts that are chartered must have:
6. Sign Contract With Charter Company
Once you have all the paperwork in order, we determine the charter conditions – split of charter income, obligations and rights of both sides, your private use of the boat… When we agree on the terms, we sign the contract and start chartering your boat.
For more information on charter management terms at Plavetnilo see here.
At Croatia Yacht Charter we offer services of yacht maintenance and yacht booking as part of our program. You can pick one or both services, depending on your requirements. more