What is a condominium boat slip?
Piney Narrows offers condominium boat slips. A condominium boat slip is similar to a residential townhome or apartment condominium in that the owner receives a “fee simple” deed (which is insurable and recorded in the Queen Anne’s County Land Records) which carries with it the exclusive right to the use of a slip (referred to as limited common elements in the condo documents). Further, the owner receives and undivided interest in all the condominium property (referred to as general common elements in the condo documents). In this case the general common elements include the piers, swimming pool, parking lots, etc.
Piney Narrows Yacht Haven is set up under the State of Maryland’s condominium laws, where actual title is passed from one owner to another. Recently, the term “dockominiums” has been used by marina developers to represent other forms of true and quasi ownership. The term “dockominium” should not be confused with condominium ownership.
Why a marina condominium?
Condominium slips have evolved as an answer to the needs of the boating community. In addition to having independence from rising slip rental rates, condominium slip owners have the ability to take money normally spent on slip rental and use it to build up equity in a asset that can be sold sometime in the future.
Condominium marinas also provide some relief for other problems plaguing the recreational marine industry. Through lack of maintenance, many private marina owners have allowed their facilities to become run down and unsafe. Structured properly, condominium marinas are designed to assure proper maintenance which virtually guarantees its future existence.
Who will operate the marina?
An elected Board of Directors, made up of unit owners, establishes the budgets and makes decisions regarding the operations of the facility. Oasis Marina Management under agreement with the Condominium Association provides professional management services and is responsible for the day to day operations of the marina.
What are the costs related to owning a condominium boat slip?
The Board of Directors, with the assistance of the management company or marina manager, prepares an annual operating budget for insuring, operating and maintaining the marina. Each condominium unit supports a proportional share of the budget. In addition, owners receive an annual real estate tax assessment directly from Queen Anne’s County. Electricity and telephone service at each slip are billed directly to the slip occupant. Although regular maintenance costs are expected, if the marina experiences unusual expenses, the Board of Directors may elect to bill special assessments to the unit owners for expenses such as dredging, piling replacement and other major repairs.
Is financing available for the purchase of boat slips?
In today’s challenging banking climate many lenders have been forced to adjust their attitudes related to all new loans they make. Most buyers are finding it practical to work with lending institutions which they already have relationships with for slip purchases. Others have negotiated seller financing with the current owner of the slip. As the current economic situation improves financing options may also improve. With residential loan rates low some buyers have also been able to take advantage of home equity loan programs which can produce possible tax savings benefits. It is however recommended that you consult a financial professional to determine the best options for you.
Will there still be slip rentals?
YES! Renters make up a significant portion of the slip occupants at the marina. At Piney Narrows Yacht Haven, a number of slips have been and continue to be sold to individuals who make them available for rent. Renters and owners that occupy their slips have all the same privileges regarding the use of the marina facilities (common elements). Many slip owners were once slip renters. In fact leasing a slip at Piney Narrows Yacht Haven is probably one of the best ways to learn more about the marina and be sure slip ownership is the right choice for you.
Will the slip I rent be sold?
In the event a rented slip is sold, the purchaser must honor any current rental agreement through its expiration date. Purchasers will receive a credit and sellers will be debited on their closing statement for all the prepaid rentals fees received by the sellers from the date of closing to the end of the lease term. Occupancy timing is often discussed at the time an offer is made so buyers and sellers can make plans well in advance of settlement day.
What if I get a different boat that won’t fit in the slip I bought?
Most boaters, from the day they purchase their boat, are already thinking about their next one. The solution, for a slip owner whose boat won’t fit, is to lease another slip while in turn, leasing out the one they own. Boaters may even consider purchasing a larger slip initially with the intent of occupying it in the future.
Sub-leasing can also provide the solution for the owner who is relocated or gets out of boating entirely. Rental income from the slip you own can offset rents paid on another slip at Piney Narrows Yacht Haven or at other marinas. Individual slip management services are available at the marina office.
Do you expect slip market values to increase?
Future values of slips will be determined by supply, demand and the overall economic climate. Boat manufacturers continue to build and sell new boats while there are thousands of boats already in circulation. At the same time, new restrictions and environmental hurdles are placed on development of waterfront properties. Critical areas legislation governing waterfront development on Maryland’s Chesapeake Bay has made building new marinas almost a thing of the past. For obvious reasons, we cannot make any representations as to the future value of condominium boat slips however we feel values will be greatly affected by the demand for well maintained, properly managed facilities.
What about owners who would like to resell their slips?
Like other real estate, slip owners may sell their slips at any time, privately or with the assistance of a broker. If you have questions about selling your slip please contact the marina office.
I am ready to buy, how do I go about purchasing a slip?
Purchasing a condominium boat slip is quite similar to buying other real property such as a home. If you have already selected the slip you desire from the monthly updated list of slips for sale you should simply contact the marina office. We can prepare the offer documents to be delivered to the slip seller and provide the details of the purchase process.