Annual Rental with Hot Tub and Other High End Accessories

2 Replies

I converted a house I previously lived in (my previously single batchelor pad) to an annual lease term rental.  The property is higher end with bamboo floors, stainless kitchen, butcher block/steel covered bar, separate studio office/building, and a 7 person sunken hot tub.  All in all, its an "attractive" rental, but could be a liability nightmare, given the sunken hot tub and higher end appliances.  

I have to be quite selective with tenant screening and though I have a large pool of prospects, it still remains a challenge to find the right fit for a property such as this with considerations ranging small children (liability concerns only) to pets.  

I have considered removing the hot tub and its supporting sunken deck, though it is quite an attractive feature both from a rental as well as sales perspective.  Of all my properties this one generates the highest CF return when all is running smooth.

All in all, I wanted to gauge thoughts on higher end SFH long term (annual lease) rentals and properties with these types of amenities. Are they worth it?

The property is in a resort as compared to a metro market, thus we do not see much CEO/corporate traffic in the area.  

As for the standard rental pool in this area, it appears to comprise standard small/chain retail business, local gov/schools, medical, construction, and special projects efforts.  Additionally, may find people who wish to relocate to "the beach" as early retirees.

There is also a robust season "weekly" rental market, though the properties specific to this arena tend to be large multi-million dollar properties hosting large groups of people on vacation for a week at a time.  High weekly income, though high maintenance, property mgmt costs and short season rental window (less than 6 months annually).  Supply is also high for this market, relative to demand.

All in all, I can find fits for this particular property within the tenant prospect pool, though as compared my other "basic" properties, this one requires a bit more selective screening which is both a positive and negative. 

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