Before we get off the subject of the agreement and customer information, make sure it is current. Any agreement should have a beginning and end date. There should also be specific provisions for carryover beyond the termination date if a new agreement is not initiated to make sure you do not lose any of your rights.

The final steps
OK, now you have this boat in your marina, and the owner is not paying his slip fees, and you are working diligently to get the title to the boat so you have the right to remove it, what should you be doing in the meantime?

First, you need a policy for writing dunning letters and placing phone calls. For this policy to be the least bit effective, it must be followed to the letter. If the first dunning letter is to be sent to a delinquent customer on the 10th of the month, it must be sent on the 10th and not the 11th or the 12th. If the customer responds to your letters or calls, be prepared to work out a payment plan. We have done this successfully in the past where it is evident that a previously good customer is going through some difficult times and the boat is worth more than the slip fees due. Typically, you freeze the past due amount and any repayment agreement of the past due amount is dependent on his keeping the current slip fees paid on time.

Another very inexpensive but effective way to get a customer to pay, particularly when he can pay but just thinks he can ignore your terms and pay when he feels like it, is to get bright orange or green fluorescent colored shipping tags imprinted with “Important, See Harbormaster” and nothing else. Tie the string that is on the tag around a rail so it flutters in the breeze and is visible to everyone walking the docks. You will be surprised by the response you will get. Everyone knows what those tags are there for, and it is embarrassing to the boater to have one tied on his boat. These should be placed on the boat beginning with the second request for payment.

Once an account starts getting into arrears, do not think it will turnaround without your intervention because it will not. We have seen more than one marina operator get into serious financial trouble because of non-paying slipholders. Sometimes it is hard to accept, but there is less operating cost and maintenance on a marina when a slip is not occupied than when it is occupied with a non-paying customer. The more aggressive action you take against a deadbeat slipholder, the better off you will be in the long term.

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