Real Estate Investor · Hughson, CA · Member since 2014 · 17 posts · 0 votes
The area that I live in gets quite hot in the summer...we're talking over 105 for several weeks. Part of our investment plan includes us buying a SFR, that we will live in for 2-3 years, and either rent out or sell at the end of that time. My question is...how much of a burden is it to rent a place with a pool? I'm sure there is extra insurance involved, not to mention the maintainance. Of course my family would LOVE to enjoy a pool in our backyard for a couple years...I'm wondering if it will be worth the trouble down the road.
The area that I live in gets quite hot in the summer...we're talking over 105 for several weeks. Part of our investment plan includes us buying a SFR, that we will live in for 2-3 years, and either rent out or sell at the end of that time. My question is...how much of a burden is it to rent a place with a pool? I'm sure there is extra insurance involved, not to mention the maintainance. Of course my family would LOVE to enjoy a pool in our backyard for a couple years...I'm wondering if it will be worth the trouble down the road.
I avoid pools because of the extra maintenance an cap ex involved. You can place the burden on the tenant, but you're adding a variable and a possible area of contention. Leaves and debris not being cleaned out jam up pumps, chemical balances are a constant annoyance, possible plumbing issues, extra water costs. And issuance will be more, at least it is in Florida.
The liability is also not fun. Regulations on fences and locks change without notice on a city ordinance level and if you're not up to date properly you can get drowned in a lawsuit... (you like what I did there?) Overall, for rentals, I don't think they're worth it. Check out the cost differences between renting places with a pool and places without, and if you think the extra upkeep and maintenance is offset by rental value, dive in.
I'll own a house with a pool but I won't own a rental with a pool. In your spot, I'd house hack places without a pool if I intended on renting them in the future.
Pools are a liability nightmare for a rental property. I usually end up filling them with dirt & planting over them. I did that once to a pool for a 35 unit apartment building. The tenants were mostly college students. Occasionally on weekends if they were bored or inebriated or both, they would jump off the 2nd floor railing into the pool for giggles.
Everyone has their own opinion. That being said we are doing what you describe "thinking about"
We are buying a house with a pool, will live in it 1-2 years before we get orders to another destination, at the navy's direction. This will be our 7th to 8th house (depending on closing order ;) ) This is our first pool house but honestly I think it might be one of our best investments.
I know in our area they rent at a premium. This house is in the best area and is class A property. So the people who will rent the house are professionals. While there are added costs and liability we were able to get a great deal and I "think" it will more than make up for it.
Thank you @Angelo Behar , @Fred Heller , @Elizabeth Colegrove , and @Ellis San Jose ....your insight is appreciated! Most of you confirmed what I had been suspecting, but will definetly keep my eyes open for a place similar to Elizabeth's described scenario. Thanks again all! :)
I own a number of pools. A lot depends on the market you are in. In AZ, the demand for pools is immense. My pool houses rent for around a $200-$300 premium and are off market in days, especially if I list in the summer. There is MUCH less competition as most investors are scared. The liability risk statistically is no different than a tenant falling. My cost of insurance is also no different. The capex though is real. They need to be re plastered every 10 years, tenants are always complaining about a light, pump, or filter that isn't working right. Pool equipment simply does not last very long. Overall, I'd say if the numbers work then go for it as long as you can get a premium on rents. Otherwise its certainly not worthy.
My experience here in Arizona is similar to what @Serge S. just posted. About half of my rentals have pools. They do rent for more money and rent quicker. As far as I know, there is no significant increase in insurance cost. I even built a pool for a tenant who really wanted one. She agreed to pay an additional $200 per month and sign a two year lease.
I pay $80 per month per pool for weekly service and yes, occasionally there are equipment issues that need to be addressed and paid for.
These homes are in class A neighborhoods with professionals for tenants. I do not worry about the liability.
From an insurance standpoint pools aren't a problem per se, but you will need to have some risk management in place including at least a 4 foot fence with a self latching gate. With these in place there will be companies that will insure you with out any issue. That said, be aware of any limiting endorsements. By that I mean you may buy a given value of liability, thinking you have that limit for all situations only to find out you have a lower limit for pool liability. Just something to be aware of and look for.
My thinking is avoid the pool if your buying a longterm rental. Buy a property at discount because the pool is in horrible condition, the pump was stolen and the wiring was stripped.... Then punch holes in the bottom, knock the sides in and fill with dirt.
For a short term rental in a sunny place, I would not buy a house that didn't have a pool. It more than pays for itself. Long term rental, different story. I have a pool guy that comes twice a week to clean for $125 per month in Palm Springs. My pool is always sparkling clean and I charge for usage to offset the gas costs. My properties rent for over $1k per night, so you have to have a pool if you want to charge those prices.
I sell to STR investors on Florida's Emerald Coast. Unless it's a condo or a large, fancy SFR, most of our properties do NOT have private pools. Nor are they "needed" as our proximity to the beautiful Gulf of Mexico makes it not AS big a deal.
That said, I would not (and do not) have pools at my 4 SFRs. Too much maintenance as everyone has already said.