Marina Lease Agreement Fundamentals

Marina Lease Agreement Fundamentals

February 8, 2022 Off By admin

Marinas that lease slips need to utilize good administrative practices to keep their business well-organized. Drafting comprehensive marina contracts for lessees is a vital part of administrative and legal management. Here are some of the most essential elements of a well-drafted rental agreement.

Duration

Marinas need to consider whether to establish a minimum rental term or permit month-to-month rentals. All contracts must address a lease term as well the procedures for renewal.

Pricing

A slip’s rental price may be a flat fee, but it is also common practice to charge by the linear footage of a vessel. If a marina uses the latter, a contract should identify the footage of a vessel. Managers should refer to supporting documentation such as a purchase agreement to verify length.

Insurance

A marina will generally require lessees to insure their vessels. It is generally advisable to require proof of insurance as a condition to renting a slip and attach it to a contract as an exhibit or addendum. Managers should identify policy minimums in lease agreements. They should also request that the lessee name the marina as an interested party or an additional insured.

Ultimately, a lease agreement needs to detail the rights and responsibilities of both parties. A thorough lease avoids confusion and lets lessees know what they need to do.