Financing of a boat in rental management
To finance the purchase of their boat, many boaters choose to use rental management programs. By placing the boat, most often a sailboat, at the disposal of a rental company, the latter provides them with a regular income linked to the rental of the boat. But there are subtleties in the calculation of this income.
"Few companies are able to offer a real guaranteed income. We are 3 or 4 on the market to be able to do so, because it requires a significant and international rental activity, with a regularity all year long to be able to guarantee the income every month, including winter" explains Clément Daël of Navigare Yachting.
Income rates linked to the profitability of the boat
In the case of Navigare Yachting, the income rates are optimized to best fit the characteristics of the boat and provide the fairest remuneration to the owner. "We have rates adapted by model and by sailing area. For example, a Bali Catspace will have a rate of 8% in Croatia, compared to 9.4% in the Seychelles, because it can be rented for more weeks. For the biggest boats, we can reach 10 to 10,5 % of guaranteed income" states the director of Navigare France.
To maximize profitability, Navigare Yachting sets the boat's equipment if it wants to qualify for the guaranteed income. In comparison, those who want specific options outside of this framework can benefit from a variable income program at 65% of the boat's actual income. "In this case, on the contrary, it is the client who takes the risk. He can earn more if the boat rents very well or less if it doesn't" explains Clément Daël.
Clear and predictable income calculation
The method of calculation of the guaranteed income is simple. The owner receives each year the percentage fixed in the contract on the basis of the purchase price excluding VAT of the boat equipped with its options, delivered to the operating base. An annual payment is assured to reimburse the monthly payments of the leasing financing generally contracted.
It is important to note that the location of the operation and related options can play a significant role in the amounts. To take our example of Bali Catspace. Delivered in Croatia, its amount is 492 keuros exclusive of tax, while it is 586 keuros exclusive of tax in the Seychelles, for which the equipment notably of air-conditioning and the delivery rate are higher. On the other hand, the rate of 9.4% in the Seychelles offers a monthly income of 4,590 euros against 3,284 euros in the Mediterranean. "Exotic areas are more cost effective, but some owners wanting to get the boat back at the end of the program may prefer to have it closer." justifies the French manager of Navigare Yachting.
There are no additional fees in a guaranteed income program. Port space, maintenance and insurance are the responsibility of the renter. "There are zero bills for our owner Navigare Yachting. In addition, he has the security of knowing from the moment of signing the operating result 5 and a half years later." concludes Clément Daël.
