As a landlord, during preparations for the next rental season, you have probably wondered whether to upgrade your rental property by building a swimming pool or not. It is certainly a great asset to have since it is one of the most-sought after rental amenities that attracts a lot of vacationers. Regardless of the style – inground, plunge or on ground, guests love to have a place to simply dip into and relax while on a vacation. Another benefit is opportunity to charge higher rent. But have you thought of all the concerns involved, including safety, liability, and local ordinances?
Does a Pool Really Increase Vacation Rental Income? The Full Guide
As you can see, deciding whether it’s worth investing in or not requires serious contemplation. For this reason, we have created a quick guide for landlords on how much value a pool adds to a short-term rental property. In this post, you will find essential information on factors to consider, such as installation cost, market demand, ROI, maintenance cost, insurance, safety features, and others. We will also explore pros and cons, precautionary measures, and how hiring a professional property management company can help you run your rental business successfully, with or without a pool.
Swell Property: Helping Encinitas Landlords Get the Most Out Of Their Income Property
A swimming pool on rental property calls for large initial investments and carries certain risks, but it may be worth it as it usually adds a lot of value and guests just love to have access to water. Owners of both vacation rentals in Encinitas and long term rentals must also comply with strict laws and regulations and handle maintenance, and ensure their guests are safe at all times. This is where professional property manager can help you. Swell Property is top rated company that has been in the business for 2 decades. Over the years we have helped hundreds of landlords in managing their rental units by providing versatile services, such as tenant placement, rent collection, maintenance, and general tips and advice on how to become a better host with stellar reviews. If you are seeking more information on professional property management in Encinitas and surrounding areas, don’t hesitate to call us on (760) 452-2345.
6 Things To Consider Before You Build A Pool
Over 90% of US travelers confirm that special amenities impact their overall travel experience, and one of them is a swimming pool. But, before you decide to build one on your rental property, you should consider several key things:
1. Location
If your unit is located in harsher and colder climate area, you may not have as many benefits as someone who owns a rental in warmer climates, however; remember that you can also have an indoor alternative for your guests. In areas where the climate is warm and in popular summer travel destinations, having a pool improves attractiveness and marketability and commands higher rates.
2. Installation expenses
Before building, start by crunching some numbers to establish the total expenses of installation, which typically includes things such as building, deck, patio, etc. Once you determine what the expenses are, determine maintenance costs and your annual revenues to decide whether it is a wise investment or not. Average pool installation in USA goes between $35,000 and $65,000, with size as the main determining factor. For this reason, some landlords opt for plunge pools, which are smaller and cheaper than regular, traditional ones.
3. Maintenance expenses
Maintaining costs about $1,500 a year on average, and includes cleaning supplies, professional services, heating costs, etc. The cost varies based on the type of water and type of supplies used. With regular care, you can keep your expenses low, and you can further reduce the expenses by cleaning it yourself.
4. Storage
Apart from construction and maintenance costs, you should also take into account whether you will have expenses for building a pool house to store equipment such as ladders, floatation toys, steps, and all your supplies like skimmer net, tile brushes, telescopic poles, or filter testers. Having a nearby storage space makes supplies easily accessible thus making maintenance easier for both you and the guests.
5. Safety measures
Think of implementinga few of these safety measures to avoid guests from getting injured during their stay at your rental property:
- Pool fence – A fence around the perimeter of the pool is one of the most effective safety features. It is especially beneficial in preventing unsupervised access by children. Self-latching gates provide an additional layer of protection.
- Pool alarm – These devices are designed to detect disturbances like unexpected or unauthorized entry into the water. These are particularly useful for guests staying with children or pets. Other types of alarms include gate alarms and surface alarms.
- Pool covers – They prevent accumulating debris, but also falls into the water.
- Eliminate hazards – Remove any hazards such as diving board, uncovered drains, calcium build up
- Include depth markers – Help prevent accidents by familiarizing the swimmers with depth of pool.
6. Compliance with local ordinances
Pool safety regulations, also referred to as SB-442 in the state of California, stipulate that every swimming pool in residential area must have at least two of the following:
- Enclosure from private home
- Mesh fencing that meets ASTM specifications and self-closing gate that can be locked
- Safety cover
- Exit alarm on home doors and pool alarm
- Other means of drowning prevention
Precautionary Measures To Take Before You Rent Your Unit
Owning a long-term rental or a short-term rental property with swimming pool carries additional liability risks of failure to comply to local, state, and federal housing laws. Below, we have listed several things to take into account in order not to get into legal troubles, like getting sued if someone gets injured on your property.
Insurance & landlord liability
According to Center for Disease Control and Prevention (CDC), in the United States, drowning is the leading causes of death for children ages 1 to 4. With this in mind, it’s no wonder rental houses have their set of landlord’s liabilities. Whether it’s long-term or a vacation rental, safety is landlord’s responsibility and liability. For this reason, it is imperative to have landlord insurance policy. It’s your obligation to keep common areas safe by installing safety barriers, fences, gates, etc.
If you are renting a family home with swimming pool, you need to obtain liability insurance, worth at least $1 million. An inground construction can be added to your homeowner’s insurance, while above-ground versions should be insured under personal property. Speak to your insurance agent about acquiring enough umbrella insurance coverage to protect yourself and your business from financial losses.
Getting insurance will help you avoid the pitfalls. The exact amount of coverage and the rate you pay depend on location, pool type, and safety measures.
Local laws
Make sure you remain compliant with laws specific to your city and state. For instance, pool fence laws can vary from state to state, so it is essential to check your local building codes and laws regarding the required barrier height and other features.
Lease addendum
Don’t forget to add a lease addendum to protect your interests and to inform your guests about responsibilities, rules and restrictions. Your addendum can incorporate the following:
- Guests use the pool at their own risk
- Guests must notify the landlord about equipment malfunction promptly, without delay
- Tenants must comply with usage rules set by the owner
How To Reduce Landlord’s Pool Liability
Although having swimming pool comes with a lot of responsibilities and concerns, there are a few things that can help ease your liabilities, and they are:
- Provide vacationers with safety instructions
- Equip the property with safety gear, life vests, and other items as required by the law
- Define who’s responsible for each stage of maintenance, such as debris removal, filter cleaning, motor pump functionality, and testing (chlorine, pH, water hardness, salt levels, etc.).
Pros of Adding a Pool
Installing a backyard swimming pool offers numerous benefits to landlords. Let’s look at the most prominent ones.
- Increased occupancy – Offering one of most wanted vacation rental amenities will help keep your occupancy levels high while reducing vacancies.
- High-demand amenity – You will not have trouble outshining the competition in a well saturated market. When advertising your rental property, you will catch more attention than before.
- Higher rates & higher revenue – As pools are typically regarded as luxurious, you can set higher rental price and higher night rates, which results in higher annual profit.
- Better curb appeal – Potential renters can also be drawn to upgraded visual appeal.
- Increased property value – Most importantly, it will add value to your real estate.
Cons of Adding a Pool
There are also a few cons, and some of the more obvious disadvantages are:
- Risk of injuries – Increased chances of accidents and injuries as well as medical expenses and legal fees.
- Higher maintenance expenses – To keep the pool in top shape, you must regularly service it, which increases operational expenses.
- Increased insurance rates – You can expect to pay more for the insurance as you will need to obtain more coverage to protect you if anything goes wrong.
- Increased likelihood of trespassing – Rental homes with pools are at higher risk of trespassing, which can lead to theft, crime, and vandalism.
Increase Your Guests’ Safety By Establishing Pool Rules
Remember to set a clear set of house rules guests should adhere to. This will help enforce a higher level of safety and prevent many accidents from happening.
Rules of pool usage
- No running – Wet floor is often the cause of slip and fall accidents that cause injuries.
- No diving in shallow water – Ensure the guests do not jump or dive into the water if it is not designed for diving.
- Adult supervision – Request that children are supervised by adults at all times not only to prevent accidents but also to have someone to react and respond promptly in case something goes wrong.
- No swimming alone – Advise guests to swim with a buddy, especially if they are not strong swimmers.
- Shower before use – This rule helps maintain water quality and reduces contaminants.
- No food in the water –Advise the guests not to eat inside the pool, in order not to contaminate the water and not to attract insects. Encourage them to eat outside the water.
- Use safety equipment – Urge occupants to use safety devices (life rings, floaties, etc.).
Conveying guidelines to your tenants
Having rules without communicating them clearly to your clients will do no good. Below you can see examples of how to convey rules and recommendations to your renters.
- Signage – Install clearly visible signs around pool area that display the rules. Use simple language combined with pictures to ensure all guests, regardless of their language or age, can understand the rules. You could also use more than one language to display regulations.
- Welcome kit – Include a copy of the rules in your welcome kit. This gives them an opportunity to refer to the guidelines throughout their stay.
- Email before arrival – Outline house rules in the email prior to their arrival, highlighting how significant safety is.
How To Maintain Swimming Pool Area On Rental Property
To keep your pool safe and running smoothly at all times, you will have to follow some maintenance steps, such as:
- Regular cleaning – Clean debris and dirt, scrub surfaces, and check chemical levels.
- Routine inspections – Perform routine inspections to verify that all safety gear is operational and to check for possible hazards (loose tiles, broken fence, damaged structures, etc.)
- Professional maintenance – Enjoy the benefits of hiring a professional property management agency, who will service the pool, maintain its healthy condition, and extend its life.
Alternative Options
If after thoughtful consideration you have come to conclusion that swimming pool is not a profitable investment for your rental business, you may want to consider alternatives such as:
- Renting a pool
- Inflatable alternatives
- Pond
- Outdoor shower
- Plunge pool
- Hot tub
Final Thoughts
Building a pool is not a small initial investment, but it is an investment that can yield large returns and make substantial impact on your annual profit. The size or style does not matter to guests as much as the landlords think. The guests just want to have a place to relax in water from time to time. A pool is an asset that can increase bookings, reduce vacancies, appeal to a large population of tenants, and aid you in earning those 5-star reviews. However, before adding one, you have to consider expenses and market demand to see whether it’s profitable or not for you. For professional services including guest management, pool maintenance and legal advice, it is best to hire a professional management company like Swell property. For more information feel free to contact us on (760) 452-2345.
Disclaimer:
The content of this article serves solely to inform and should not be considered financial advice or a substitute for obtaining financial advice. While we endeavor to keep the information provided here accurate and up to date, we make no warranties of any kind about the accuracy, reliability or suitability with respect to the information and materials presented on this website for any purpose. Any reliance on such information is entirely at your own risk. We shall not be liable for any damages or losses arising from any use, reliance on, or misuse of materials provided in this post. You are encouraged to confirm information presented here with alternative sources and professional advisors for investing, finance, insurance or law.
Further Read on Vacation Properties:
- Vacation Rental Amenities That Will Wow Your Guests & Boost Your Host Status
- Vacation Rentals: How to Enhance Guest Experience
- 12 Essential Tips on How to Make Your Home in Encinitas a Vacation Rental
- Unlock Success in Thriving Vacation Rental Market: Expert Tips from Rental Managers
- What Is a Property Management Company & Why Its Crucial in Rental Business Success
- 10 Game-Changing Benefits of Using a Property Management Company
About the Author
David Miller is Real Estate Advisor at Swell Property. Whether you’re eyeing a new home, an investment property, securing the best mortgage, or aiming to enhance your property’s value, my focus is on providing personalized guidance and strategy for your success. I listen to your needs attentively, ensuring that my expertise aligns perfectly with your real estate goals. My clients’ satisfaction and referrals are the true measure of my success in San Diego’s dynamic real estate market. If you’re searching for a real estate professional who’s deeply committed to your success, I’m eager to demonstrate my expertise and win your trust. Let’s connect and start this journey together.
