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Pools - Hell yes or Hell no?

deb1162

Updated: Jul 31, 2024




In the world of real estate investing, the allure of a rental property with a swimming pool can be undeniable. Owning such a property offers a unique opportunity to attract tenants seeking a bit of luxury and comfort. However, before you dive into the deep end of the pool market, it's essential to consider both the pros and cons of such an investment. In this article, we'll explore the advantages and challenges associated with buying a rental property with a pool.


Pros of Buying a Rental Property with a Pool:


Increased Rental Value: One of the primary benefits of owning a property with a pool is the potential to charge higher rent. Many tenants are willing to pay a premium for access to a private pool, especially in warmer climates. This increased rental income can boost your return on investment.


Attracting High-Quality Tenants: A property with a pool often appeals to families, professionals, and individuals seeking a more upscale rental experience. This can lead to a more stable tenant base and a reduced likelihood of vacancies.


Competitive Edge: Offering a pool can give your property a competitive advantage in the rental market. It sets your property apart from others, attracting prospective tenants and giving you more bargaining power.


Higher Resale Value: A well-maintained pool can add value to your property. When the time comes to sell, your investment may yield a higher resale value, increasing your overall profit.


Personal Enjoyment: While you may be purchasing the property as an investment, having a pool can offer you and your family the opportunity to enjoy the space when it's not rented out.


Cons of Buying a Rental Property with a Pool:


Maintenance Costs: Maintaining a pool can be expensive and time-consuming. Regular cleaning, chemical treatments, and repairs are necessary to ensure the pool remains safe and attractive. These costs can eat into your rental income.


Liability and Safety: Pools come with inherent safety risks. Accidents and injuries can lead to legal liabilities and insurance claims. Ensuring proper safety measures are in place and educating tenants on pool safety is essential.


Seasonal Demand: Depending on your location, the demand for properties with pools may fluctuate with the seasons. In colder climates, pools can be unused for a significant portion of the year, potentially impacting your rental income.


Limited Tenant Pool: While pools can attract specific tenant demographics, they may also deter others who have concerns about maintenance, safety, or simply prefer a property without a pool. This can limit your potential tenant pool.


Initial Investment: Buying a property with a pool typically requires a higher initial investment compared to properties without pools. The additional cost can reduce your cash flow and increase your financing expenses.


Conclusion:


Investing in a rental property with a pool can be a profitable venture if approached with a clear understanding of the pros and cons. It offers the potential for increased rental income, attracts higher-quality tenants, and adds value to your property. However, the ongoing maintenance, safety concerns, and limited tenant pool should not be underestimated.


Before taking the plunge into such an investment, it's crucial to conduct thorough market research, consider your financial capacity, and assess your willingness to manage the additional responsibilities that come with owning a pool. If the numbers make sense and you're prepared for the extra work, a rental property with a pool can be a lucrative addition to your real estate portfolio. Just remember to dive in with your eyes wide open and a clear strategy for success.


I would strongly recommend that there is monthly maintenance and cleaning conducted by a  professional that is paid for by you as the landlord so you can rest assured that the property is being checked every month.  If there are pool chemicals that are required, then the tenant reimburses you this cost.  This is explained to the tenant at the start of the lease. 



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