Rental with swimming pools

13 Replies

Hi All,

I have a property that I’ve had on the market for sale but it’s not moving. I can positively cash flow at $500 per month net but am concerned with the swimming pool. Should I be?

I have two rentals with swimming pools.  No problem.  Check with your insurance company for rates.  Here are a few quick items you will need to make sure are done:

  • No diving board or slide
  • Security fence around pool
  • Anti-suction drain in bottom of pool
  • Be sure to include regular pool service from a pool company as part of your rent.  That will ensure your pool won't become a swamp and you will get a little more rent.

I have 3 with pools. Like Greg said, include pool maintenance in the rent. I probably wouldn’t have a pool at rental where it had to e opened and closed with hard freeze conditions. But it hasn’t really been a big plus or minus. 12 years of experience is 2 bad pumps and a rotted out filter. 

If it’s a supply and demand game. There might not be a lot of demand but there sure as heck isn’t a lot of supply. 

This all assumes you want to be, or already are, a landlord, otherwise lower price and bail. 

@Jason D.   Have you owned a rental with a pool?  Would love to hear more about your experiences with large liability and big expenses.  That has been the opposite of my experience.  

We've owned two pools in DFW area. One purchased in 2013 and the other in 2014.  I think we've replaced a pump on one.   We pay about $150/mo for pool maintenance but I estimate we get most of that back in increased rent.   Having a house with a pool has been a major feature in getting those rented quickly.  So no expense problem there.

My insurance company had no issues a $500,000 liability coverage on these houses.   I have a $2M umbrella liability policy over the top of that.  

@Greg Scott nope, and never plan on it. Maybe in Michigan it's an ROI positive, but here in Florida, unless it's a class "A" asset, it adds no rental value. $150/mo plus added electricity costs, plus closing and opening seasonally (if youre in that climate) costs thousands in lost cashflow per year, and doesnt justify it in a rental.

The added liability is common sense, even if your insurance company doesnt charge you for it. We have stories weekly of kids drowning in pools, and I'd prefer that story to not involve my property.

Everyone has their own idea about pools, my opinion is that I prefer to remove as much risk as possible, and a pool is an easy risk to eliminate.

I have a rental with a pool and I get more rent than for those without a pool. I am under contract to purchase another pool home and plan on using that one as an STR. I plan on purchasing more pool homes if a good opportunity arises.

Interesting.  It seems to be a regional thing.  Coastal Florida people seem to treat pools as liabilities - no surprise when you can just jump into the Atlantic or the Gulf to cool off.  Folks in water-challenged Las Vegas and in California (where the Pacific is usually way too cold to swim in) seem to get a bang out of renting with pools.  

I own two SFR rentals with pools (NorCal and Las Vegas) + my primary and am happy acquiring more.

Yeah, it can’t be a liability issue as dogs are probably responsible for 10x more insurance claims. So don’t allow dogs and then deny pools. 

As far as electricity, these are all SFR, I don't pay the electric.

Besides, electricity is almost free.  I live in Vegas, have 3 pool pumps, 2 air conditioners and an electric car. May and June my electric bills were  $52 and $120. It’ll pry hit $150 for July. then right back down to the high $50’s, low $60’s. 

I have about 8 or 9 homes with pools here in the Phoenix area.  Definitely more maintenance expenses associated with them but I also get an extra $100-150/mo rent out of them and they rent quick especially in the spring/summer rental season.

Overall more positives than negatives 

As an individual who owns a pool service company, I always have wondered if it’s really worth having a pool in a rental property! In my experience here in Las Vegas, a lot of landlords have their tenants maintain the pool which is very confusing to me. It is a money pit and could become very expensive if the tenant does anything wrong. If you can get an extra $100-$150 in rent then as the home owner I would be supplying the pool service provider. You could potentially make a few extra bucks with a pool especially if you have home owners insurance! If you own a couple properties with pools then I’m sure you can work out a deal with the company you are using which could help boost your cash flow. If anyone has any questions about their pool, please feel free to ask!

@Bill Brandt thanks Bill. I have 4 rentals and do well, I think. Cash flow from$225-$1000(paid off one). This house with the pool is bigger and I think I can cash flow $400-500 per month and pull all my money out and still have 20% in equity.