The principles started managing the first LLC “shared ownership” vessel in 2006. San Diego Yacht Shares began in mid-2020 with the new concept of a “shared use” model. They are combining their experience in shared yacht ownership, yacht management, chartering services, and food and beverage services to provide a cost-effective and effortless means to yacht sharing.

The owner keeps the participant shareholder entry fee. 20% of the fee will be placed in a reserve account for potential one-time projects exceeding $2,500. Down the road, the shareholder may either sell their share to another party or at the option of the owner, the owner may purchase it back.

Owners may elect to use a schedule booking system or San Diego Yacht Shares develops a calendar for owners’ approval.

Our experience shows that setting a fixed monthly fee for shareholders is better than charging out the actual monthly expenses as they occur which will cause high volatility in the required monthly payment. One month the payment may be $300.00 and another month it may be $700.00. A fixed monthly fee is accomplished by establishing a reserve of 1-2 months and expensing paid expenses only up to the monthly fixed amount times the number of shareholders. If, for example, the fixed monthly fee is $550.00 then times six shareholders the monthly ceiling is $3,300.00. If the total monthly expenses are less than $3,300.00 then there will be a surplus added to the reserve. If the total monthly expenses are higher than $3,300.00 the ceiling will kick in and the reserve is used to cover the balance. The remaining overage will be expensed in subsequent months.

Shareholders should seek legal and tax counsel regarding their specific situation. Our recommendation is that you do not deduct your monthly fee or expenses relative to your use of the boat or cost to operate the boat. The exceptions to this include expenses paid on behalf of entertaining clients. Shareholders may choose to provide all-expense paid trips for clients. For example, day usage, overnight stays, accompanied trips by a licensed Captain, catering, and other concierge services. These expenses are not related to operating the vessel and may be deductible business expenses.

• The San Diego Yacht Shares – Shared-Use Program
• Manage Marina services – slip fee, locker, recreational storage.
• Arrange, schedule, and contract for vendors.
• Schedule and coordinate monthly and annual maintenance – topside and bottom cleaning, zincs, detailing, gel coat repair, annual engine, and generator maintenance.
• Schedule and coordinate long term maintenance – boat yard fees, bottom paint, water pump, heat exchanger, macerators, head systems, air condition, navigation systems, inverter, refrigeration, electric.
• Coordinate fiscal & legal – contracts, insurance, agreements, amendments, assignments, vessel documentation, property tax, and accounting.
• Manage maintenance and replacement of safety items – maintain coast guard compliance, flotation devices, throwable devices, fire extinguishers, signaling devices, epirb’s, contract towing and on-water service.
• Marketing responsibilities for coordinating the sale of shares.

• Walk on walk off services.
• Cleaning of interior
• Refueling prior to arrival of next party
• Concierge services
• Catering, food & beverage services.
• Coordinating professional Captain services for client excursions.
• Skippering and training. Operator training and systems familiarization.