Marina Due Diligence Checklist for Buyers
Due diligence is where a buyer confirms that the marina described in the listing is the marina that actually exists. A marina combines real estate, waterfront structures, rights to use the water, environmental obligations and several distinct revenue lines, each of which can hide problems. A disciplined approach to marina due diligence helps buyers understand what they are paying for and gives their lender the information it needs to evaluate the loan.
This checklist is general guidance for buyers of existing, operating marinas. It is not exhaustive, and requirements vary by state, locality and transaction. Buyers should work with qualified attorneys, accountants, marine engineers, environmental professionals and insurance advisors. Nothing here is legal, tax, environmental or regulatory advice.
Financial Records
- Several years of tax returns and financial statements that reconcile with each other
- Revenue by line: wet slips, dry storage, fuel, ship store, service, rentals and tenant leases
- Monthly results to show seasonal patterns
- Bank statements to confirm deposits match reported revenue
- Documentation for owner add-backs and one-time items
- A complete schedule of existing debt, leases and liens
Slip and Storage Records
- A current tenant roll showing each slip or storage space, boat, rate, term and payment status
- Sample slip and storage agreements
- Renewal and departure history over several years
- Any waitlist, with dates and deposits if collected
- Accounts that are past due or in dispute
Our article on marina slip mix explains how to read this data.
Waterfront Rights
Request copies of any submerged land lease, easements, title documents and records of riparian rights. Counsel should review term, renewal, rent provisions, permitted uses and whether the landowner must approve an assignment. See our article on submerged land leases.
Permits and Environmental Matters
- Permits for docks, structures and any past dredging
- Fuel storage and dispensing records, including tank information and inspection history
- Stormwater and waste handling plans and records
- Correspondence with regulators and any notices or violations
- Environmental reports prepared by qualified professionals
Our article on marina environmental permits covers these issues in more depth.
Physical Condition
Engage a qualified marine engineer to inspect docks, pilings, bulkheads, seawalls, lifts, travel equipment and fuel systems, and a building inspector for upland structures. Ask for maintenance records, repair history and any storm damage claims. Our guide to marina dock condition explains what these inspections may cover.
Ancillary Revenue Lines
- Fuel purchase and sales records and supply agreements
- Ship store inventory and sales reports
- Service work orders, technician productivity and warranty records
- Rental fleet records, rental agreements and incident history
- Leases with restaurants, brokers or other tenants on the property
See our guide to marina ancillary revenue.
Staff and Operations
Review the organization chart, key employees, compensation, seasonal staffing and any employment agreements. Understand which relationships depend on the owner and who will run daily operations after closing. Our article on marina staff retention discusses transition planning. Worker classification and employment questions should be reviewed with qualified professionals.
Insurance and Claims
Request current policies, loss history and information about storm-related claims. Buyers should consult insurance professionals about the coverage that may be available for the property and what their lender is likely to require.
US Professional Funding helps buyers finance the acquisition of existing, operating marinas. Learn more about our marina acquisition financing.
