Pools are undoubtedly a great addition to any house, but many landlords wonder if it is a worthwhile investment or an extravagant splurge. After all, such an expensive amenity requires a lot of care from the property owner and tenants. Although, you can always outsource that task to an expert. Professional Property Management of Northern Virginia can help with maintenance and address the many liability concerns that may arise.
Either way, there are many things to analyze before committing to such a project. If you have such questions, then this post is perfect for you. This article explores what landlords must consider in renting a property with a pool.
Pros and Cons of Renting with Pool
- It Increases Your Home Value
Pools are great long-term investment choices for investors. One of the most apparent benefits of a pool is it increases your home’s value. Not many houses have the luxury of a standard pool in their backyard, and it can make your property stand out from the crowd.
- It Attracts Higher-Paying Tenants
Of course, increasing your home value would automatically attract higher-paying tenants. Prospective renters eager for a pool would be more than willing to pay extra for the luxury.
A significant drawback to installing a pool is the upkeep. Proper maintenance requires consistent care to remain hygienic and debris and pest free. While a clean pool can up your home’s value, a dirty or shabby one can do the opposite.
Besides cleaning, having a pool comes with a lot of safety issues. They’re highly prone to accidents, so you have to address the liability problems. Also, you’ll need to set up security measures to prevent strangers from using it.
What to Include in the Addendum
An addendum is a document attached to an original document or contract. Its primary purpose is to clarify certain things not mentioned in the main lease. Here’s what to include in your pool’s addendum:
The first thing to include in your addendum should be pool rules. It would help if you highlighted any limitations such as “no diving or no running.”
Another essential thing to add to the pool addendum is any maintenance responsibilities. It would help if you clarified what each tenant should do before and after use or as part of routine maintenance.
Names and Signatures
Since an addendum is an extension to your lease, it should also include the names and signatures of both parties.
It’s a good idea to include liability in this document. This addition allows you to clarify that renters are swimming at their own risk and absolve yourself of any faults in the event of an accident. In addition, ensure you have the proper coverages through your landlord insurance policy and require tenants to also carry renters insurance.
Who is Responsible for the Maintenance
When it comes to maintaining a swimming pool on a rental property, it can be a little tricky. However, the tenant is responsible for its regular upkeep for the most part. That is unless the addendum states otherwise. Thus, the maintenance of the pool could either be the tenant’s or the landlord’s responsibility, depending on the agreement made by the two parties.
The renter’s responsibilities would often include regular cleaning and maintaining the pool’s normal pH. At the same time, the property owner would be responsible for providing the necessary tools and equipment for its care.
Importance of Liability Insurance
Liability insurance is a policy that protects a landlord from claims related to personal or property damage from a third party. When you purchase liability insurance on your rental, you receive some legal security against lawsuits and damage. Here’s why you shouldn’t skip getting it:
Coverage from Injury Claims
As fun as pools can be, they’re also an accident hazard. Injuries from slips are common, and several more incidents can occur in and around it. Liability insurance offers you protection if a tenant or guest wants to sue.
Protection from the Unexpected
Besides injuries, you could also encounter other unfortunate accidents. For example, a tree could fall over during a storm, or a shoddy contractor could break something during routine maintenance. Either way, having a policy protects you from incurring the worst of such expenses.
Although real estate is one of the most stable investment ventures, there are still many specific decisions property owners have to take. In this article, we explored what landlords must consider in renting a property with a pool. We highlighted its home value increase and luxurious appeal as pros. On the other hand, we acknowledge its more obvious cons like maintenance and injury.
Thus, landlords should include a well-written addendum for care and seek liability insurance against damage. These can come in handy and prevent you from incurring a significant financial loss.
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