Pools and Hot Tubs on Rental Properties

Whether you’re the property owner or the tenant, there are few reasons to consider installing pools and hot tubs on rental properties. When the tenant takes the time to create a well-developed proposal for this type of property enhancement, the landlord or property owner will be better prepared to decide on the request.

Handling the Liability Insurance

One of the first things a landlord will want to address is liability insurance, which will be a necessary part of maintaining pools and hot tubs on rental properties. Even though the property owner may have to add this type of liability coverage, they should also expect their tenants to add liability protection to their own renter’s insurance policies.

Requesting that tenants carry liability coverage for water-related accidents will give them extra protection. Claims can be immediately filed on their policies to help injured tenants get the medical treatment they need. The policies should also cover guests who may use the pool or hot tub on the property.

Where to Put Pools and Hot Tubs on Rental Properties

Both the property owner and the tenant should consider how adding pools and hot tubs on rental properties will disrupt the landscaping. The landlord and tenant should discuss this issue together to determine the best location for the installation. 

Keep in mind that electricity and plumbing will have to be extended out to the location of the pool or hot tub.

An advantage of installing a pool or hot tub is that it will increase the property value for the landlord. They can add statues and additional hardscaping or upgrade the landscaping to beautify the area surrounding the new pool or hot tub. 

If the property owner is willing to make the investment, adding pools and hot tubs on rental properties can provide long-term returns.

Discuss the Handling of Higher Utility Costs

The use of pools and hot tubs on rental properties will require higher energy and water usage costs. In most cases, the property owner covers these costs since the pool or hot tub will be used by any tenants on the property. To offset these higher costs, the property owner may need to increase the rental rates for each tenant.

The landlord should make sure each tenant understands that adding a hot tub or pool will increase their monthly rent. In addition to notifying tenants of the increase, each tenant should sign a legally binding contract that acknowledges the rent increase in exchange for using the pool or hot tub.

Address the Disposal of Pools and Hot tubs on Rental Properties

Using pools and hot tubs on rental properties often involves the use of large items, such as floatation equipment, patio furniture, and grills for cooking meals. The property owner should address the safe use of these items in writing and ask each tenant to sign the agreement. 

The agreement should also address the disposal of these items to prevent vacating tenants from abandoning their equipment on the property. The agreement should instruct tenants to take their items with them or transfer them to a city dump. Tenants who don’t follow this rule should be faced with fines or other penalties.

When Should Property Owners Consider This Request?

Property owners shouldn’t feel compelled to install pools and hot tubs on rental properties simply because a tenant made the request. 

If the property only has one or two rental units, look at the histories of those tenants. If they have a good history of paying rent on time and taking good care of your property, landlords might be more open to granting the request. 

A larger property with multiple rental units presents a different situation. Installing pools and hot tubs will benefit a larger number of tenants. It may also help when it comes time to fill a vacant unit since swimming pools are considered important amenities to potential renters. 

Look at all of the benefits before deciding to install a pool on rental properties.

Ultimately, it is up to the property owner to decide whether installing a hot tub or swimming pool will be worthwhile. By working together and being open to compromise, the tenant can help make this decision easier for the landlord. This may require some negotiating, but discussing the option can benefit both parties.