SF Rental Home in DFW with a Pool - Good or Bad idea?

Question

Hello BP

Looking for some guidance from investors that have or had homes with an in-ground pool; specifically in Texas or even more specifically in DFW area. Looking for some local feedback mainly due to the rental laws in each state are different & Texas seems to be an investor friendly state. We have a few rentals in Chicago, and would never entertain renting a home with a pool there.

We recently came across our first home with a good size in-ground pool that is in very good shape. The landlord in me wants to fill in the pool due to the 'possible liability'. The long term investor in me wants to keep the pool as the resale value of homes with pools in the area are quite a bit more than without.

I have seen some general documentation online to have the tenant sign a waver form and attach it as an addendum to the lease; similar to what tenants at an apartment complex would sign for use of common exercise area / common area pools.

Any feed back from investors / attorneys that have some experience dealing with SF rentals with Pools would be greatly appreciated!

Thank you!

David Faulkner · Answer

Bad idea in a vast majority of cases ... only exception I could think of may be super high end luxury rentals where it is expected. The problem is that a pool will not add a significant amount to the rental income you can get, but it will add significantly to your maintenance expense and liability (and perhaps your purchase price too). In fact, if I personally saw a property that was an absolutely smokin' deal and a perfect rental property in every other way except for it having an inground pool, then I would consider buying it and factoring in the cost to demo and fill in the pool with compacted dirt then sod, or perhaps put a deck over it. There actually was a house like that I saw in the recession in Phoenix, but there were so many other unbelievably good deals on the market at that time that I decided to pass and buy something else without a pool instead ... ahh, those were the good old days ...

Guy Gimenez · Answer

Unless this is an executive home in an executive home neighborhood, you should think twice. And even then, there are many issues to consider.

Liability: make sure you have a long conversation with your insurance company and get a minimum of $1MM umbrella policy

Legal: you had better follow the Texas Property Code to the letter regarding fencing, locks, etc. Miss just one requirement and you'll need to get your checkbook ready because you can bet your insurance company will crawfish on any lawsuit since you didn't follow the statutes regarding safety.

Other: You're likely looking at it the pool from an enjoyment perspective as if you're going to live in it but unless you've owned a home with pool, you have no idea of the expense. I can almost assure you it will be a loss for your due to the ongoing maintenance cost, not to mention the fact that a tenant will NEVER maintain a pool as it should be so ultimately that expense will fall on you.

Thomas S. · Answer

Good, bad, no terrible. Do not risk the liability of having a pool. Tenants plus pool is a landlords nightmare in more ways than you can imagine.

A pool is a homo owners luxury and should never be in a rental property.

Larry P. · Answer

Better compare your insurance rates on with and without pool as I would suspect there will be a huge difference which may quickly eat up your cash flow.

SF Rental Home in DFW with a Pool - Good or Bad idea?

SF Rental Home in DFW with a Pool - Good or Bad idea?

Most Popular Reply

5 Replies