Thoughts on Pools For Long-term Rental

[Chase Lawson]

I would love to get some input. 

I purchased my personal property in 2020 for $300,000. Current resell value is $425,000-$450,000. My current monthly payments is roughly $1800-$1900 per month. I am thinking I could rent my home for around $3000 per month and possibly push it a little higher with the property having a pool and a fenced in acre. 

I am hesitant as every time I mention I may rent the property people tell me they wouldn’t due to the pool. Everyone is telling me the liability of the pool is to much for it to be worth it. I am wondering if anyone else has done this and if there are steps you can take to mitigate risk. 

The main reason I am wanting to keep the property is I have a cheap loan (roughly 3%) and its in a great market (high appreciation). 

Would love to hear others thoughts. Should I take the money and run? Rent? If rent, is there a way to mitigate risk for having a pool? 

[Bill Brandt]

You can click on the magnifying glass in the upper corner and search rental pool and find many discussion of this in the past. 

It's been my experience that a pool adds about $100/mo in rent (in a warm year round pool market like vegas) and that's after you include $150/mo pool service. Because you are no leaving it up to the tenant. So it's slightly worse than a non-pool home on returns. The rents are higher on one of my $500k rentals, but with the an HOA, pool service, higher property taxes, higher insurance it actually generates less income than a $370k home without a pool.

In regards to liability and insurance that has never been an issue for me until this year. Basic insurance is virtually the same. On the two properties above the pool home costs me about $800 with 300/300k limits. The cheaper property about $600/yr. The people telling you about the extra liability are the same people telling you expensive cars break down all the time. But they’ve never owned one and don’t know anyone that ever has. They just assume or herd from someone else that didn’t know. 

That being said, after 10 years with USLI for my umbrella policy this year I had to switch as they wouldn’t offer more than $1million if any of my homes had pools. But I switch to Madison for lower premium and more insurance. Their policy change saved me money. 

[Lateefah Mathews]

@Chase Lawson you do not have to take the money and split! You're in a fortunate position with your property right now. Renting your home can indeed be the viable choice, especially given the potential for higher monthly income and the favorable market conditions.

Now, your concerns about the pool's liability are very valid, but it doesn't necessarily mean renting out your property isn't worth it. Plenty of homeowners successfully rent properties with pools while managing the associated risks. Here are a few steps you can take to mitigate the risk and ensure a safer rental experience:

1. Get appropriate insurance: Make sure you have adequate liability insurance coverage for the pool and consider having the tenants acquire renters' insurance as well. 
2. Implement safety measures: Install safety features like gates with self-closing mechanisms, and pool alarms to minimize the risk of accidents. 
3. Educate tenants: Consider including pool safety information in the lease agreement to ensure tenants are aware of their responsibilities and rules for pool usage.
4. Consider professional property management: Hiring a professional property management company experienced in rentals with pools can be a worthwhile investment.

Aside from that, the decision to rent out or sell your property depends on various factors, including your financial goals, risk tolerance, and personal circumstances. 

I hope this helps in your decision-making process, best of luck with whatever path you choose for your property!