Do I Need a Yacht Management Company?

If you are thinking of purchasing a yacht that is staffed by a captain and crew and subject to
class and flag requirements, you might want to consider working with a yacht management
company.

The right yacht management team can help to ensure your vessel is both fully
compliant with regulations and in prime operating condition whenever you board it.

“Yachts are sophisticated both in technology and the regulatory world. It is very common to see family offices outsourcing planes and yachts for the same reasons,” said Michael Reardon, founder & president, DPA/CSO, Reardon Yacht Consulting.

Yacht management companies typically offer a list of services that owners can pick and choose from depending on their needs. These include:

• Financial administration. This can range from independent services like crew payroll,
  accounting, bookkeeping and tax preparation to creating and overseeing the yacht’s
  entire annual budget. A good yacht manager can make the yacht’s financial operations
  more efficient, leading to cost savings.
• Operational & technical support. This covers the yacht’s daily operations, including
  security and staying ahead of onboard provisioning and inventory needs; yearly
  requirements such as insurance coverage, regulatory inspections and yard periods for
  annual maintenance, and special projects like refits and repairs as needed.
• Safety management. The management company will work with the yacht’s captain to
  develop a custom safety management system that is compliant with the International
  Safety Management (ISM) or mini-ISM code, depending on the size of the vessel. This
  includes providing crew safety training, safety audits, and a Designated Person Ashore
  (DPA) for the yacht. If desired, today’s yacht management companies also use satellite
  technology to track the yacht when the owner is not onboard.
• Crew management. This typically does not include actual staffing (there are dedicated
  crew placement agencies in key yachting ports around the world), but does cover other
  functions like crew background checks, drug screening and pre-employment health
  screenings; non-disclosure agreements (NDAs); onboardings, departures and
  terminations, and Maritime Labour Convention (MLC) and Jones Act compliance.

  Managing crew can be among the most complicated and challenging aspects of yacht
  ownership and is an area where a yacht management company can have the greatest impact.
  In addition to handling any human relations matters that crop up, “Understanding the very unique employment rights of seafarers compared to office employees is really important,” Reardon
  said.

In looking for a yacht management company that will fit best with your yacht program and your own individual needs, here are the top things to consider:

• Depth of experience in the yachting industry, particularly the regulatory world.
• HR experience and people-management skills
• Flexibility, and the ability to create a custom management program tailored to you and
  your yacht.
• Transparency regarding financial matters and relationships with shipyards and vendors.
• Confidentiality and discretion.

There are many reasons to hire a yacht management company, but the most important one is
this: Your yacht is your haven, where you go to unplug from worldly matters, relax, refresh and immerse yourself in nature. Engaging an experienced team to manage the minutia of its daily operations will let you enjoy it more fully.