Charter Boat Ownership

Is charter boat ownership right for me?

Maybe. It’s not for everyone. Some people can’t stand the idea of someone else aboard "their" boat. For others who enjoy guests in their "cruising home", it provides both joy and income.

Will charter income pay for the boat?

For part of it. We’ve done this now for 20 years with our own boat and over 15 years in the business. We’ve learned that, in the Pacific Northwest, charter income generally pays for the normal expenses of keeping a boat—like moorage, insurance, professional maintenance—and generate a profit.  If you have financed the boat, the amount of that profit is normally enough to pay down the monthly purchase loan payments by 10% to 25%.

Are there tax benefits?

Yes. First, you save the sales tax on the boat, which here is 8.4%. That can be quite a few thousand dollars. Second, your charter boat is your own small business, and you can, at the very least, deduct expenses up to your income, which makes charter income "tax free". As a "second home", the interest part of your monthly payment is fully deductible. Please see your tax advisor.

Will my boat get beat up?

The boats in our fleet look far better than most private boats in the marina. Yes, expect some wear and tear. But we find that we attract a high caliber charter guest. We treat our guests right, give them a top quality yacht, and, almost without exception, they take special care with our boats. It is not unusual to have a guest approach a boat that has been in our fleet several years and ask "She looks new. Is she?"

Can I use my own boat?

Yes, for business and maintenance purposes. For pleasure use, you simply charter it. We return all the money to you, less the sales tax and a small fee for processing and our B&O taxes.

Who Does the Maintenance?

We have over 90 preventive maintenance steps. Some owners do it all, some do some of it, but most engage a professional to keep their boat in top shape. We are not in the maintenance and repair business. Why? Well, when I founded the business in 1982, I found that most complaints centered around repair and maintenance bills from the charter company. So we will recommend professionals to you...but we make no money from your maintenance or repair bills. Our preventive maintenance standards save you expensive repair bills and help keep charter guests happy. Plus, it gives us the confidence to offer the best charter guarantee in the industry.  You may be as active in the operation of your charter business as you wish to be, including maintenance, as well as advertising and "hands on" testing of the systems on your boat.

Can you project my cash flow?

We would be pleased to provide you a cash flow analysis that shows charter income, conservative tax benefits, moorage, insurance, professional preventive maintenance, and your monthly payments. It’s only a projection but it’s based on our 20 years of doing this.

Why San Juan Yachting?

That depends upon you and your boat. Frankly, we’re a bit fussy. We have quality owners with quality boats. Long term relationships are our goal. There are many fine charter fleets. Here’s what I think makes us stand out:

1. We are intentionally smaller. We don’t want to be the biggest. We always work to be the best. Rated #1 by Cruising World readers.
2. We accept only quality boats, maintained to exacting standards.
3. We are exclusively power. For boaters, by boaters.
4. Service is our mission.