The vessel is owned by the owners in the boat syndicate, not a third party. The software defines who owns what fraction of the vessel. A unique feature of Boat Equity is that it caters for unequal ownership of a vessel too. For example, a vessel could be owned by two people but one person owns 1/3 and the other 2/3 of the boat.
Boat Equity has the flexibility of either professional third party management or self management by the owners. Those owners who are happy to contribute time can take on the responsibility of organising maintenance and managing the accounts. For those owners who prefer a “walk on, walk off” experience they can appoint a professional management company to run the vessel. For more information on management options please contact us. Boat Equity is based on owners self managing the syndicate to avoid expensive management contracts with third party companies, and to retain control of their own boat. This is a proven concept with many private syndicates in operation in marinas around the country. Boat Equity recommends that three roles be appointed within the boat syndicate as follows:
|Maintenance Party||Arranges maintenance on the vessel|
|Accounts Party||Manages the syndicate bank account and expenses|
|Administration Party||Manages the administration tasks including registration, insurance, ownership register, etc|
The Boat Equity software has a unique booking calendar for owners to schedule their usage. The calendar is point weighted in order to smooth out demand for the vessel in peak times like weekends and public holidays. Each owner has a monthly booking allowance which is calculated as a proportion of 600 points. So for example, a 1/3 share owner would have an allowance of 200 points per month. Each owner is free to use their points in one consecutive booking or in smaller bookings throughout the month. Daily point costs are as follows:
|Weekdays (Mon – Thu)||20 points per day|
|Fridays||30 points per day|
|Saturdays & Sundays||50 points per day|
|Public Holidays||70 points per day|
Standard bookings can be made up to 2 months in advance. On the 1st day of the month, bookings open for the following month. Bookings can also be made on the day if the boat is available, simply check the calendar, make your booking, and head to the boat.
Wildcard bookings can be made up to 12 months in advance. Each owner has an annual wildcard booking allowance which is calculated as a proportion of 840 points. So for example, a 1/3 share owner would have an allowance of 280 points for the year which they can use to make wildcard bookings. Note these are not extra points, they simply allow you to book the boat further in advance. Wildcard bookings still contribute towards your monthly booking allowance.
Bookings are made on a first come first served basis. Any bookings made 7 days or less prior to the scheduled usage are locked in and no other owner can request the same booking. Bookings made more than 7 days ahead are subject to a priority system. If it is a public holiday then priority goes to the owner who has not had the same public holiday in the previous year. If that does not resolve the priority then the owner with lowest accumulated points tally will get priority. On a weekday or weekend then priority goes to the to the owner who is within their allocated monthly points allowance. If that does not resolve the priority then the owner with lowest accumulated points tally will get priority.
Exceeding Monthly Points Allowance
Provided no other entitled owner wishes to use the vessel and an owner wishes to exceed their monthly points allowance, then that owner can book the vessel and make a contribution to the syndicate in accordance with the “Points Over Value”. The points over value is agreed by the syndicate upon establishment but Boat Equity recommends the following:
|Boat Value||$20k – $199k||$200k – $499k||$500k – $999k||$1m – $1.49m||$1.5m – $1.99m||$2m – $2.9m||$3m – $3.9m||$4m – $5m|
|Points Over Value||$2.00||$3.00||$5.00||$7.00||$9.00||$12.00||$16.00||$20.00|
Alerts and Notifications
The Boat Equity software includes an alerts and notifications feature so you are always kept up to date of syndicate events. When an owner makes a booking you have the option to receive an email and/or SMS notification of the booking. You can also receive notifications for other events and you can manage the notifications by switching them on or off within the software.
Syndicate Owners Agreement (optional)
The optional Boat Equity Syndicate Owners’ Agreement is a comprehensive 29 page agreement which spells out the rights and responsibilities of the owners of the vessel. It also includes a share register which defines how ownership is shared. The agreement is written in such a way that the there is no partnership created between the owners as this important to protect each owner from liabilities. The agreement allows you to dispose of your shares, so you are free to market and sell your ownership in the vessel. The agreement term can be adjusted to suit your requirements but we recommend a term of 35 months after which the syndicate is free to sell the vessel or the syndicate can agree to renew the term.
To view a free sample of the contents page only click here.
To purchase a complete sample of the Boat Equity Syndicate Owners Agreement please click here.
Boat Equity recommends that each owner seeks independent legal advice.
The syndicate operates a bank account for the purpose of holding funds to operate and maintain the vessel. Each owner contributes to the bank account on a regular basis in accordance with their ownership of the vessel. All costs are shared in proportion with ownership except for fuel which is based on usage. The bank account is managed by the Accounts Party who is also an owner within the syndicate.
At the syndicate AGM the owners agree an annual budget for the vessel. The Maintenance and Accounts Parties are then able to manage the expenses throughout the year in accordance with the budget. Any major expense not budgeted needs to be resolved by a majority vote. Any expenses incurred by an owner on behalf of the syndicate should be claimed back from the syndicate by presenting the receipt to the Accounts Party.
Fuel Log Tracking
Included in the Boat Equity members pack is a log book which should be kept onboard the vessel. Each owner simply records their fuel usage using either a fuel meter or engine hours. The owner then records this information in the Boat Equity software so it can be captured in the automatic monthly report.
The boat can be located anywhere. Quite often the original owner of a vessel has a pen where the boat remains even once the owner has sold shares to other owners.
The boat is insured in the names of the syndicate owners. Each owner is responsible for any damage (or insurance excess) when the vessel is under their control.
The Boat Equity software automatically compiles a monthly report which is emailed to all syndicate owners on the 1st day of each calendar month. The monthly report contains a summary of points over and fuel logs. Each owner then contributes the total amount owing to the syndicate bank account. The Accounts Party then checks that contributions have been made in accordance with the monthly report.
When an owner uses the boat they are not to leave the vessel fuel tanks below 50%. If the syndicate has a fuel card (linked to the syndicate bank account), then the owner uses the fuel card to refuel the vessel. Otherwise the owner makes payment for the fuel and seeks reimbursement from the syndicate Accounts Party.
If your syndicate is run by a professional management company then they will clean the boat upon return. In a self managed syndicate each owner is responsible to leave the vessel in a clean state ready for use by the next owner. They have the option of cleaning the boat themselves or engaging a cleaner at their personal expense to complete this task. Boat Equity recommends that syndicates with larger vessels engage a professional cleaner to detail the boat at least monthly.