Many yacht owners share their time between multiple homes and keep their yachts stored away in one of the cities where they own a residence. Some yacht owners who enjoy their vessels on a seasonal basis every year seek to maximize their yacht’s usage and profitability, lower their liability and insurance costs by chartering their vessels.
Yacht owners do this by chartering their boats under a “bareboat yacht charter” agreement. This agreement allows the owner to lease their vessel while they are not using it. It is an intelligent way of profiting from owning a yacht and limiting the yacht owner’s liability.
Bareboat yacht charter agreements
Bareboat yacht charter agreements refer to when a yacht owner charters their vessel to another person for some time without the yacht owner’s captain and crew.
The individual leasing the yacht becomes entirely responsible for the vessel’s operation and requirements, including selecting the captain and crew, paying for fuel, insurance and any other costs associated with the vessel.
Benefits of bareboat chartering
The benefits of leasing your yacht under this agreement include profitability, limiting liability and reducing insurance costs. While the yacht is in the hands of the charterer or lessee, they become responsible for everything related to the vessel, including any potential liability associated with it.
Similarly, charterers favor this kind of agreement because it gives them full access to the vessel with no conditions as if they owned it outright, without having to buy a yacht themselves.
Upon the return and delivery of the yacht, the vessel is expected to be in the same condition as it was when it was chartered. If everything goes well, both parties have benefitted from the transaction and if they choose to, they can make similar agreements in the future.