Swimming pool in small multifamily building

7 Replies

Hello,

I am looking at a deal that has a swimming pool. Regular size. Not crazy big. 26 units. US Southeast.

- What are your thoughts about having a swimming pool in small multifamily buildings?

- What are the cost to maintain? I remember that i was paying 120-150$ of electric bill just for the pool in my SFH + 100$ to have maintenance.

- Any law for safety ?

- What if somebody dies in there because he was drunk or something ? 

Thank you for sharing your thoughts!

Liability as well as maintenance costs are a major issue. Contact your insurance provider and see what they will cover and the cost of that coverage before considering purchase.

Unfortunately a pool has a negative impact on the bottom line not positive. If it were a high end property it may be a necessity item but if middle or lower class it is a negative I personally would not consider investing in.  

Don’t kill the deal based solely off that. Locally, decommissioning is as easy as push it in/ fill it with dirt and plant grass on it. Or at least for sfh it is, almost bought one exactly like that.

We get $75 more a month for a condo that has a swimming pool compared to similar units that don't.  So there is that.  But I agree,  a discussion of the costs with your insurance person are in order.  It's not the drunk guy,  it's the innocent toddler drowning which will be very bad if it goes to court.  It is fenced?  I think that's a bare minimum you'd want.

Contact an insurance broker to find out the cost difference. I looked at a 2 fam property for a client and the price difference in insurance was absurd compared to the additional rent, not to mention pool up keep.

Thank you all for your insights.

Originally posted by Account Closed:

Don’t kill the deal based solely off that. Locally, decommissioning is as easy as push it in/ fill it with dirt and plant grass on it. Or at least for sfh it is, almost bought one exactly like that.

Never thought about that... I'd rather turn it into a nice patio area/study area (since it's in a college town). Based on T12, the pool maintenance drains 350$ a month + electricity so easily 400. And even though the broker is telling me that the pool is value add to have good tenants right now, I am not convinced at all, especially with all the late fees i see happening.

Originally posted by Account Closed:

Don’t kill the deal based solely off that. Locally, decommissioning is as easy as push it in/ fill it with dirt and plant grass on it. Or at least for sfh it is, almost bought one exactly like that.

 Following up on this one, decommissioning a pool will require "to jack hammer holes in the bottom of the pool plaster before they do dump dirt in. This makes any water from rainfall flow through the abandoned pool. If you don't do this and just fill it in with dirt, then any water from rainfall will become trapped by the pool's plaster."

Yes sir, it gets turned into rubble, hole gets filled, grass gets planted, then you marvel at our new “green space”.

Expect the ground to settle for 5 ish years so you’ll likely end up levelling with sand (if you’re lucky) or dirt more seed/ sod later on.