Will a Pool Increase Your Rental Value?
Pros and Cons of Adding a Pool to a Rental Property
Do you need a justification for raising the price of your rental property? How about building a new feature on your rental property for your tenant to enjoy, like a swimming pool?
Most landlords will perform easy or low-cost renovations, such as landscaping or repainting the walls. But if you expect to keep your tenants happy enough to want to continue renting your property, you need to add more value to your property. A swimming pool installation is a great way to do that.
Any tenant would jump at the chance to rent a home if it has a swimming pool in the backyard. However, you must be prepared to maintain the pool, or else this idea could backfire. Swimming pools require regular cleaning and maintenance in order for the water to stay clear and sanitary. The only thing tenants dislike worse than a home with no swimming pool is a home with a filthy swimming pool.
Therefore, you need to consider the time and cost associated with the pool maintenance responsibilities. Since you’re renting the property out to other people, you have to consider their health and wellness too. Some homeowner’s insurance carriers may raise your premium rate or cancel your policy due to the increased personal liability associated with the pool.
Are you willing to take on this liability and responsibility? Let’s explore the advantages and disadvantages of adding a new swimming pool to your rental property.
Advantages
Pools are Popular
Most tenants love homes with swimming pools, especially if they don’t have to take on the maintenance responsibilities. They view a swimming pool as a comfort feature that they can use to exercise, relax or spend quality time with their family.
In addition, the tenants will have more respect for you as their landlord because of this fantastic feature you’ve provided to them. They may even treat your home better because of their happiness about the pool.
As a result, you can expect those tenants to stay on your good side by paying their rent on time each month.
An Incentive to Charge Higher Rent Prices
Tenants understand they have to pay extra for luxury. So if you add a swimming pool to your rental property, it’ll give you the best excuse in the world to raise the rental price of your home. Most tenants will understand that your pool maintenance expenses will justify raising their rental price. But if your current tenants cannot afford a higher rental price, you can always find new tenants who can pay a higher price after the current lease expires.
Enhances the Beauty of the Home
A swimming pool with clear blue water can make any home look more attractive on the outside. When you show your house to a potential tenant, they will immediately fall in love with the house after seeing the swimming pool.
Keeps Tenants Healthy
A swimming pool can improve a tenant’s physical and emotional health. It gives them an excuse to have fun and exercise simultaneously. Both younger and older tenants enjoy using swimming pools.
Disadvantages
Increased Personal Liability
A landlord’s biggest fear is a tenant who injuries themselves on their rental property. Unfortunately, adding a swimming pool will significantly increase the chances of an accidental injury or death.
All someone has to do is accidentally slip and fall on the pool deck for an injury or death to occur. If that happens, you can expect the victim or their family members to file a lawsuit against you. It isn’t just the risk of tenants getting hurt or killed either. Any strangers or visitors on your property could also suffer the same fate if they are around your pool.
For this reason, insurance companies charge higher monthly premiums to policyholders who install swimming pools on their property.
Pool Maintenance Expenses
Pool maintenance is both costly and time-consuming. Hiring a professional pool technician to maintain your pool could cost you hundreds of dollars per month or more. But even if you do the maintenance work yourself, you still have to purchase the pool chemicals, filters, and other accessories. You also have to change the water frequently too. Your pool water risks contamination if you don’t mess up on these tasks. Then it could put your tenants’ health at risk.
Therefore, you might as well invest in a professional pool technician to maintain your pool. They will ensure everything is clean, including the pool water, floors, walls, deck, and equipment. Most importantly, they will add the necessary chemicals to the water to maintain the proper pH balance.
Additional Financial Risks
It costs between $20,000 to $30,000 to install a new in-ground swimming pool on a property. How long will it take to recoup this expense from your tenant’s rental payments?
Sure, you could raise their rental price to make up for the expense, but you’ll still have the ongoing maintenance expenses too. If the rental price is too high, you may find it challenging to retain your existing tenant or to find a new tenant.
Another critical point is that some tenants don’t care about having a swimming pool in their backyard. They are just looking for an affordable home to rent without the need for any luxurious accommodations. So if you add a pool to your rental property, you’ll narrow down the list of possible prospective tenants who’ll want to rent your property.
The Final Decision
What do you think? Is it worth the investment to add a swimming pool to your rental property? Everyone will have a different answer based on the property’s current value, the size of your property, and your strategy for maintaining the pool.
Figure out how long it will take to recoup the pool cost after subtracting the monthly maintenance expenses from your rental income. Then you will have a clearer picture of whether the investment is worth it or not.
Richmond Hill Property Management Blog
