For many people, taking a dip in a pool is the ideal way to enjoy hot, sunny weather. Whether for relaxation, exercise, or fun, spending time in the water is a luxury many homeowners and renters seek. Consequently, a property with a pool can be a profitable investment, but there are downsides, as well. The following pros and cons will be helpful when contemplating such an investment.
Pros:
Increased Value. A well-maintained pool adds value to any property. In addition, such an appealing and large-scale amenity allows a landlord to charge more rent and attract higher-quality tenants.
Tenant Enjoyment. Quality tenants gravitate to the allure of a pool, and those tenants will likely stay longer if they’re enjoying the distinctive amenity. Pools often interest families with young children and create a fun sense of community in your complex.
Curb Appeal. A pool also adds aesthetics to any backyard or patio area, especially when extra thought and effort are put into its design. Having a pool featured within the rental listing helps prospective tenants take notice as well.
Cons:
Maintenance. Keeping a pool in top shape requires a lot of maintenance. Every aspect of pool maintenance involves time, effort, and expense, from major repairs and skimming out debris to maintaining proper chlorine levels. Even if you assign the day-to-day jobs to your tenant, you must verify those tasks’ completion to protect your investment and ensure safety.
Liability. Due to the risk of severe injury or death, landlords must prepare for possible medical or damage claims if a tenant, guest, or trespasser gets harmed at the pool. Preventive measures such as installing a fence and gate, having self-closing/ self-latching doors to the yard, and warning signs can increase safety and reduce legal risks.
Insurance. Due to increased liability, insurance companies typically require landlords with on-site pools to purchase additional coverage. The amount will vary depending on location, the type of pool, and what safety precautions are in place. At a minimum, most landlords need liability coverage to protect against potential lawsuits.
If you’re considering purchasing a property with a pool (or installing one), check local laws and comply with any safety requirements. It’s also best to add a pool addendum to your lease. The addendum should cover pool rules, who is responsible for maintenance tasks, and how to report needed repairs and secure the pool after use. Directing renters to the state or county’s pool safety guide will set expectations while demonstrating your concern for tenant safety.
Although a property with a pool involves extra hassle and risk, many landlords find that the added value and tenant satisfaction make the investment worth it.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management, and we’re here to help landlords navigate the rental market.
