Gym for a Vacation Rental?

Question

I will soon purchase my own rental property in Tennessee, and would like to utilize my gym equipment (i.e. I am "house hacking"), but do not know how much of a nightmare this has the potential to cause in the case that a guest injures themselves using it. I had planned on keeping it in shop building distinct from the house; a pool is close to the shop, and I could convert the area into a "mini gym complex".

Regarding this:

[1] Would it be possible to create a separate LLC for a "Gym franchise", under which I include every home gym that I add to future properties?

[2] Would the building have to be on a different parcel of land (other than the one on which the house lays)? -- that is, would I have to subdivide this land?

I would think it would then be possible to treat home gyms located in out-buildings as distinct locations for gyms which are part of the same franchise.

Please let me know if what I am suggesting would work, or if it even makes sense.

Note: I am aware that the ROI for a single property would be incredibly meager; but, this is something I would like to do with at least one property, for my own use. If it also attracts more guests, then I might as well advertise it.

John Underwood · Answer

Hotels that have room for hundreds of people often only have a couple people a day use the gym.

I don't see taking up space with gym equipment for people on vacation as the best use of a space that could be used for something else like a game room, movie room or another bedroom.

Kyler J Sloan · Answer

Paul Sandhu: Thanks for the tip. I may have to check there; either that, or speak to an attorney.

Kyler J Sloan · Answer

John Underwood:

As I implied in the "note" above, this is not something I would do for the sake of ROI. But, given that I am already intending to keep a home gym on the property (for my own use), I am trying to understand how I can mitigate the liability risk.

Paul Sandhu · Answer

I built my own home gym from free weights that people left behind at STRs.  Pairs of dumb bells from 5 to 55 pounds, an adjustable bench.  Built my own weight rack and bought some bands to do lat pulldowns.  You should ask this on Bodybuilding.com in the misc Finance Careers forum.  I post there.  Stay out of the main misc forum.  It's full of degenerates.