Author Note

Owners who approach me about putting a Fort Lauderdale vessel into charter almost always frame the question as: “How much can I make?” The honest answer requires clarifying which type of charter program they are describing — because bareboat and crewed charters are fundamentally different legal, operational, and revenue structures. Confusing them leads to either missed income opportunity or, worse, regulatory non-compliance that voids insurance coverage and exposes the owner to USCG enforcement. This breakdown covers the real economics of both models in the South Florida market.

The Regulatory Dividing Line Between Bareboat and Crewed Charter

Before any economic analysis, the regulatory framework matters enormously. In U.S. waters, the USCG draws a critical distinction based on whether the charterer is operating the vessel themselves or whether the owner provides crew:

Bareboat (demise) charter: the entire vessel is turned over to the charterer, who assumes operational and navigational control. The charterer provides their own captain. In this model, the vessel temporarily exits the owner’s operational control. Under USCG regulation and the Section 6 exemption of 46 U.S.C., a true bareboat charter — where the charterer is a qualified operator and the owner has genuinely relinquished operational control — is not considered carriage of passengers “for hire” by the owner, and therefore does not trigger USCG vessel inspection requirements.

The practical reality: the Section 6 exemption is frequently misapplied or misunderstood. USCG enforcement interprets “genuine relinquishment of control” strictly. If the owner retains any operational role (provides fuel, schedules the trip, determines the route, or screens the charterer’s captain), USCG may characterize the arrangement as crewed charter subject to inspection requirements (USCG marine safety missions).

Crewed charter: the owner provides a licensed captain (and, on larger vessels, additional crew) to operate the vessel during the charter. This is definitively carriage of passengers for hire under USCG regulation. For six or fewer guests, the owner’s captain must hold at minimum an OUPV license. For seven or more guests, the vessel requires a USCG Certificate of Inspection under 46 CFR Subchapter T.

The single most important step before entering any charter arrangement is a direct conversation with a maritime attorney who understands the Section 6 exemption as applied in South Florida courts, and a review of your vessel’s insurance policy to confirm which charter models are covered — and at what premium.

Revenue Model Comparison: What the Numbers Look Like in South Florida

Crewed Charter Revenue Potential

For a well-presented 55–70 foot crewed motoryacht in Fort Lauderdale, current market charter rates:

Day charter (6-8 hours): $2,500–$6,500 depending on vessel size, amenities, and crew quality
Overnight / weekend charter: $8,000–$18,000 for 2-night weekend
Week-long charter (Bahamas, Keys): $18,000–$45,000 for a 60-foot-class vessel

ACS (annual charter season) gross revenue potential for an actively marketed 60-foot motoryacht in a managed Fort Lauderdale program: $60,000–$120,000 per year. Actual net to the owner is substantially lower after management fees, crew salary, fuel, provisioning, and maintenance recovery costs.

Typical crewed charter program cost structure:

Charter management company fee: 20–30% of gross charter revenue
Captain salary (prorated if part-time charter use): $2,500–$5,000/month
Fuel (guests typically pay separately or at cost under MYBA charter agreement terms, but not always)
Provisioning: at cost, charged to guests under standard charter agreements
Post-charter maintenance and consumables: 8–12% of gross revenue is a common rule of thumb for in-season wear
Charter insurance rider: $2,000–$6,000 annually above base marine insurance

Net owner yield on a $90,000 gross crewed charter year: after management fees (25% = $22,500), captain costs ($36,000 prorated), insurance rider ($4,000), and maintenance ($10,000), the owner nets approximately $17,500–$22,000 — before their own use days and before the tax treatment conversation with a CPA.

Bareboat Charter Revenue Potential

Bareboat charters in South Florida are more common in the Caribbean than locally, for several reasons: the USCG Section 6 exemption application is legally murky, the pool of qualified charterers who meet the insurance and experience requirements is smaller, and many insurers are reluctant to extend coverage to bareboat arrangements without significant underwriting review.

In markets where bareboat is cleanly structured (qualified charterer, genuine control transfer, proper insurance), rates for a 45–55 foot sailing or motoryacht in the South Florida / Bahamas corridor run:

Week-long bareboat rate: $8,000–$18,000 per week depending on vessel type and season
Management overhead: lower than crewed charter — no crew costs, provisioning is charterer’s responsibility
Net margin: higher percentage than crewed (no crew costs), but lower gross rates

The economics of bareboat charter favor owners of vessels in the 40–55 foot range where crewed rates are insufficient to cover crew costs, and where the charterer pool of licensed, experienced operators is broad enough to find qualified tenants.

The Insurance Reality for Florida Charter Owners

This is the area where most Fort Lauderdale owners underestimate complexity. Standard recreational marine insurance policies in Florida explicitly exclude commercial use — including any charter arrangement. Operating under any charter model without notifying your insurer and obtaining the appropriate rider or policy endorsement means that a charter-related claim will almost certainly be denied.

Charter insurance riders in the Florida market typically require:

Documentation of the specific charter program and model (crewed or bareboat)
Captain’s credentials on file
Per-trip incident reporting provision
Annual renewal and audit of charter activity records

Premium impact of adding a charter rider varies widely by underwriter, vessel age, and charter frequency — budget $2,000–$8,000 annually above your base policy cost for a 50–70 foot vessel in an active charter program. The National Association of Insurance Commissioners provides a framework guide for understanding recreational and commercial marine policy structures (NAIC consumer publications).

The Tax Angle: What Owners Must Ask a CPA

Yacht charter income in the United States has specific tax treatment implications that vary dramatically based on the owner’s use of the vessel, the charter structure, and how the vessel is titled. The questions to address with a CPA who has specific marine experience:

Is the vessel classified as a business asset or recreational property for IRS purposes?
What percentage of use is owner personal vs charter commercial (IRS hobby-loss rules apply if commercial use is insufficient)
Does Section 179 expensing apply to qualified charter vessel improvements?
What charter income documentation is required to support business expense deductions?

We neither provide tax advice nor recommend specific structures — but failing to have this conversation before the first charter season is an expensive oversight that we try to prevent in every pre-charter consultation.

Which Model Is Right for Your Fort Lauderdale Vessel?

The practical decision matrix:

Moretti Yachts International works with Fort Lauderdale owners to structure charter programs that align with their vessels, risk profiles, and financial objectives. If you are evaluating either model — or trying to understand why a current charter program is underperforming — contact us to schedule a charter economics consultation. We bring in a maritime attorney and a marine insurance specialist for any owner considering a first-time charter program launch.