Boat Slips - Owners, Renters - Viewpoints

[Dave Wright]

Years ago I rented a boat slip. I remember the effort I put in trying to find the ideal slip at the lowest rent, and how happy I was when I found it. After renting for a year I decided to buy a slip of my own in a marina. Again, I searched carefully and found what I wanted at a lower than market price. I viewed the purchase as part of my boating hobby expenses - I didn't invest in as big a boat as I might want, but put the money into the slip instead and owned modest used boats.

Over the years I'ved kept my own boats in the slip and I've also rented the slip out to a number of tenants. The longest continual period I kept a boat in the slip was just over 5 years; I rented the slip out on and off for 10 years prior to that. For the past four years I've rented it out continually.

All things considered the slip purchase was the best investment of "boating hobby money" I ever made. Rent has returned the original purchase price, and now is a nice little pocket money income. Appreciation in price has probably exceeded all of the money that I've "lost" in boat ownership. All things considered I can't think of a better investment for someone who's hobby is boats and boating.

I think I've had an excellent set of tenants over the years. I charge a bit less than market rent, and when a tenant leaves I've never had to advertise for more than three days to find a new one. So far, every tenant has been enthusiastic and happy to get the slip. There have only been a 5 or 6 times over the years that a tenant has been late with the monthly rent. this has always been quickly resolved with a phone call. I stay out of my tenant's way; I check the slip once a month, and just make a mental note of how their boat's condition and how it is secured.

I find this whole process has been so easy and pleasant that I've lost track of how folks might feel about renting slips, or finding slips, or how they feel about paying slip rents, etc. Any thoughts or discussion on this subject? Slip rental problems? Beefs aboout slip owners?

What brings this on? Today, for the first time in 20 years I received a tenant's rent check back marked "insufficient funds." I got on the phone with him right away and he had a good explanation. I'll see him in person tomorrow for the money. So no problems and all is well and it looks like a good relationship will continue.

[S/V Laura Ellen]

My slip comes with membership at the yacht club. I can't lease it out, but the yearly cost is a fraction of the going rate in the area. I'm happy with my arrangement.

[JimConlin]

I see a fair number of vacant slips and moorings in these parts. Be glad you've got a tenant.

[paladin]

I am an absentee owner of a slip at a west coast yacht club....made the purchase in the sixties, and it's wide enough for a good size trimaran or two narrower boats....It has been rented continuously since I bought it except for the few months that I was there. The club takes 33 percent for managing and keeping it current. It was paid for after the first 10 years, and it's been over 30 now. I am thinking about selling it as I am past needing it for a boat now.....

[donald branscom]

I am GLAD to see all the empty slips at the marinas!

When I see them start to fill up again I will know the prices are reasonable.
The high prices charged at the end of the Dot com boom have got to come down.
Otherwise people will keep their boats on trailers and yards inland and these marina kings may have to change their lifestyle.

[Bob Adams]

I'm just damn glad to have a slip...Enterprise the only wood boat allowed at my marina.

[Dave Wright]

I am GLAD to see all the empty slips at the marinas!

When I see them start to fill up again I will know the prices are reasonable.
.

You're on to something there, although slips are in demand here. But many slip owners do charge too much. I've seen slips identical to mine advertised for 20% more, and often much higher per month. Those slips remain vacant, sometimes for several months at a time.

It's always difficult to set a price. Since I paid cash years ago my fixed costs (taxes, insurance, fees, etc.) are low, $2.68 per foot per month this year. So it's very easy to cover all fixed costs. I have a minimum rent level that I keep in mind based on what I regard is an above average return on my initial investment, i.e., I want considerably more return than I can get on safe FDIC insured CD's. If others charge excessively, it's easy for me to get a good return and have demand too.

I still remember that I never liked to pay high moorage fees myself, so that tends to keep me reasonable. Other slip owners have argued that I should charge as high as the market will bear. These owners miss months of rent where I don't. Some argue that tenant "quality" is a factor too, postulating that low rent gets irresponsible tenants. I haven't found that to be true so far.

As a slip owner though, I can't help but note how little most folks use their boats. When I kept a boat in my slip I averaged 3 usages per week. I had one tenant who didn't use his boat once in 2 years. I couldn't imagine what he was thinking. I guess the "dream" of boat ownership doesn't often look realistically at boat moorage or storage (and probably doesn't look realistically at all sorts of stuff).

[NYCKiwi]

Hmmm, perhaps a slip or two may make a good investment. What do you think?

[John B]

I've got $50.00.. I'm in.:D

The sums don't work out in favour of ownership here.( Auckland.) The only reason you'd own one is to guarantee your own tenancy.

[NYCKiwi]

Thanks John, thats good to know...

[Yeadon]

It's never occurred to me that here in Seattle you could buy a boat slip. I always figured that moorage was a rental. Interesting.

[John B]

Thanks John, thats good to know...

The $50 or the statement?:D
Its a dillemma John,because of the lease terms they're mostly based on vary so much , and the one(s) that are owned outright have highly inflated purchase prices.
Still, you can't put too much of a price on security of tenancy... Its a big factor.

one day maybe.

[NYCKiwi]

Haha, well I'll take your 50, John ;-), but was really thinking about your comment that the sums in NZ don't add up for ownership...

I read in another post that prior to the financial crisis there was an 8 year waiting list for East Coast (US) moorings. Given the crisis and potentially lower demand/prices for moorings currently, I was thinking that a mooring/slip could be a great long term investment. Unlike investing in rental housing, there's little that the tenant can destroy and the cashflow could be handy (bit like owning a car park in Tokyo). However, it all depends on what price you can get one for.

From your description, sounds like it would be hard to make the numbers add up in Auckland...

[Dave Wright]

Haha, well I'll take your 50, John ;-), ...

I read in another post that prior to the financial crisis there was an 8 year waiting list for East Coast (US) moorings. Given the crisis and potentially lower demand/prices for moorings currently, I was thinking that a mooring/slip could be a great long term investment. Unlike investing in rental housing, there's little that the tenant can destroy and the cashflow could be handy (bit like owning a car park in Tokyo). However, it all depends on what price you can get one for.
...

Exactly, but the emphasis has to be on a reasonable purchase price and reasonable on going tax and fee structure. I initially bought mine soley to have a reasonable place to keep a boat. Then the rental situation came up "between" boats. After a few months the ease of the rental situation sank in - there's really nothing the tenant can harm, other than burning down the dock and finger piers, or the bathroom facilities. Insurance covers that; insurance is shared by all owners and is not overly expensive. In any case, the renter is looking for a safe secure place to keep his boat, he wants a decent place that's well kept.

Ownership is on a condominium basis, with every owner having a specific slip and then joint ownership of all docks, shore parking lot, building with storage lockers, bathrooms and showers. There's one hired full time manager. The board of directors is elected, as in any condominium situation, at an annual meeting. There is always the issue of maintenance costs, but that is handled by vote also. So far this has been good, with maintenance spread out over the years and readily handled by relatively low cost dues. Much depends on the collective disposition of all of the owners. We haven't had the assortment of ""beater" boats that you sometimes see at run down marinas owned by a single owner or company with cash flow problems.

Now I always keep my eye open for other slips here in Seattle, but they have to be at bargain basement prices. I went to a sherrif's sale a few years ago, but my low bid was rapidly exceeded. If I recall correctly, the winning bid was 16,000 for a 30 foot slip. That slip could now fetch 30K plus in a quick sale. Really small sums, all things considered, and taxes spread out over all owners are low. Very reasonable for a place to store a boat or have a rental.

I've looked at many slips along the intracoastal in the Carolinas as a potential vacation spot. Prices sure vary, from very affordable to ridiculously overpriced. So far we haven't committed - it's important to know the area well.

[schlaboatnic]

I too have been watching the prices of condo slips here in the Pac. NW, specifically in the Anacortes area. I currently own a boathouse here in our port (Everett), and pay the port roughly $580/mo. for the privelage of tying up to their dock. The house itself was a 50k investment and should be able to be re-couped, but you will never own the slip, and you are at the beck and call of the Port who in recent years has turned more attention to residential development instead of catering to the boaters. I have not seen a significant reduction in the asking prices for slips, but there are a few in Skyline that have been on the market awhile. If they continue to hold and maybe appreciate, it would be a better investment than my current stock portfolio with the added benefit of providing a service to me. The drawback is giving up a fully enclosed shed for the boat. Boats and boating is always a compromise.

[Dave Wright]

If you're willing to go a little further north there's Semiahmoo. I think slips start at about 29K minimum these days and there always seems to be a number for sale. I don't think there are boat houses there, but I could be wrong. I think the condo fees are close to 4 bucks a foot per month, a buck and a half more a foot than what I'm currently paying, plus utilities. I have no personal knowledge of the place though.

There are some covered slips in the marina where I own, they go for a premium though.