25 questions to ask a fractional boat operator
If you’re thinking about joining a fractional boat operator, here are some questions to ask prospective clubs:
1. How long has the company been operational?
2. What do you believe are the strengths and weaknesses of the programme and why should I ultimately join this one in comparison to the choices available?
3. How many owners are there per yacht and can I buy larger shares, if so what are the benefits of this?
4. What precautions have been made to make sure the scheme is in accordance with International Laws?
5. Have you financially engineered the structure of the company to make the most of TAX and VAT allowances / exemptions? If so what are they?
6. What is the precise ownership relationship between me and my yacht?
7. What are the range of yachts you have available and how does this fit in with my requirements and lifestyle?
8. What locations does your fleet cover, is it local to one area or does it cover many?
9. What make and model of yacht is within the programme and what was is the rationale behind the choice of the individual yacht?
10. What precautions have been taken to ensure the quality and integrity of the yacht I buy into?
11. Can I personalise my yacht and can I have a significant say on the model we buy?
12. Are the yachts crewed and fully managed, what training and information do the crew receive?
13. How is my ownership invoiced - if there isn’t a membership fee, is the
company placing a margin on the yacht? If the answer is no to both – how does the company survive? If the answer is no to both beware you may be buying someone else’s problems.
14. How long am I tied into the ownership period for? And can I sell my share at any time?
15. What happens if the company fails?
16. What booking system is in place and is there any priority amongst members?
17. What costs are included in my maintenance and management fee – what do I receive for this and how are these costs calculated and billed?
18. Are there any additional fees or charges applicable in addition to the annual management fees?
19. Can I test the reservation process and visit a yacht before joining, and am I limited to using my own yacht or can I use others within the programme?
20. How is my liability protected in relation to other co-owners?
21. What are the insurance arrangements for the yacht and crew?
22. If I decide to join and get my membership confirmed, can I change my mind?
23. Can family and friends use the yachts without me being in attendance? How do you manage this?
24. What other services will I benefit from (concierge, private jets etc)
25. Have you got satisfied owners I can speak to?
This information is for the convenience of our readers. The inclusion of a company should not be construed as a recommendation or endorsement by Fractional Life. Please review our full Disclaimer for further information.