Swimming Pools

G'day team, Tried a search for this but not much came up.

Can some informed forumite (or various) please give me an opinion of the value of a pool to an IP?

All other things being equal:
  • Does a pool generally bring a little extra rent ?
  • Do tenants in general like to have a pool ?
  • Do the maintenance issues outweigh the returns ?
  • Are there Insurance hassles to deal with ?
  • Does it really depend on where the Property is? eg Cairns vs Melbourne
  • Would you as an IP investor generally not touch one with a 40' pole ? (IP with a pool that is)
Appreciate your comments, Cheers
Pedro
 
Dear Pedro,

For me I would not touch an IP with a pool unless there was a really compelling reason.

Some comments:

Pools:

-Ongoing maintenance costs. Who pays you or tenant? (If the tenant pays through the rent does this make you less competitive in a higher vacancy rate environment?)

-Safety issues. Do you want the risk of the latch on your safety fence failing and being sued for a tenant's child drowning? (All insurance companies find reasons not to pay insurance when it counts.)

-If you had put in the pool you will have a much higher perceived value of it then an investor would. Therefore this will affect the price competitiveness of the property.

-How much room does a pool take up? I know a pool is a big hole that I will probably have to fill in to do further development on the site. An additional cost that I will have to budget for.

Cheers,

Sunstone.
 
hi Pedro

I guess you partly answered your own question.

It would definitely depend on where the property is. In QLD propbably evryone want one. In melbourne not so much

I personaly wouldn't buy with pool.[ but mine are all in melbourne]
cleaning and maintenance is something I don't want to worry about at the moment.

Besides which I think swimming pools may open a whole lot of litigation avenues for the not so scrupules tenant.

I dont know whether it affects the insurance or not ; I was never asked whether I have swimming pool or not
 
Pools usually do not add much value to a property, and in fact, can detract from the value if they are not cared for properly. I think in an IP, you would be reducing your market (available tenants) by having a pool, as they would have to do the maintenance. Anyone who doesn't specifically want a pool may be turned off your property by it.

As said before, it does also reduce the size of the yard.

When we bought our current PPOR, it did have a pool. This was OK by us, with 4 kids and hot summers, we were quite happy to have a pool. Most properties we looked at with pools either had little or no yard at all, and again with 4 kids we want them to be able to get outside. But, when we found this property, it had a pool and lots of yard.

Having been here two years now, we wouldn't be without a pool. We use it so much and it's great - BUT the maintenance is time consuming and expensive, and a big green sludge hole in the ground does nothing for anyone.
 
Originally posted by Pedro61

All other things being equal:
  • Does a pool generally bring a little extra rent ?
  • Do tenants in general like to have a pool ?
  • Do the maintenance issues outweigh the returns ?
  • Are there Insurance hassles to deal with ?
  • Does it really depend on where the Property is? eg Cairns vs Melbourne
  • Would you as an IP investor generally not touch one with a 40' pole ? (IP with a pool that is)

:mad: Only one of my IPs (a property north of Perth) has a pool - and I actively avoid looking at properties with pools.

The pool has never been a selling point for tenants - the house is close to the beach for a start

I take care of the maintenance costs, and doing so does awful things to my bottom line. But I want the pool to stay in top condition should I wish to sell the IP urgently - and it will be the first one I sell!

Cheers
 
That's pretty much what I thought. Just wondering if there was some advantage I had overlooked.

Thanks to everyone.

Geez I love this forum . . . :D

Pedro
 
The advantage is that some potential tenants are looking for a pool.

I have a house in Melbourne with pool that I have leased out with 2 months vacant over in 6 years. Every tenant have been late 40's mid 50's with children who have left home (empty nesters) some with grand children. The pool was a great for them to have parties with friends and have the grand-children around.

So in a market of oversupply a pool can be a differentiator for tenants who are looking for something special.

Tenants pay for all pool stuff, but I had to install solar heating at $3.6K and pool childproof fence $3.8K...It's not cheap!
 
Pool for IP

Hi Pedro

In all regions of South East Qld I've looked, all PM's suggest actively avoid pools for IP's due to cost of maintenance and possible big capital spends on repairs etc.

When I looked further north around the Cairns Northern Beaches, the experienced PM I dealt with suggested IP's with pools were more sought after, less vacancy and better returns. The deal they have is landlord pays $30 per month toward pool maintenance and tenants pay for all chemicals. This supposedly encourages the tenants to keep skimmer baskets free of leaves, ppol vacuumed etc.

I'd say the tropics would probably be the exception to the pool rules, which makes sense, having walked around in Cairns during summer :)

Cheers
TryHard
 
Re: Pool for IP

Originally posted by TryHard
I'd say the tropics would probably be the exception to the pool rules, which makes sense, having walked around in Cairns during summer :)
When I was in Townsville many years ago, pools were an absolute necessity- not only for the heat and humidity, but also for the fact that marine stingers made beach bathing impossible.
 
My experience

Does a pool generally bring a little extra rent ?
In Adelaide between October- Febuary definitely

Do tenants in general like to have a pool ?
In Adelaide between October- Febuary definitely

Do the maintenance issues outweigh the returns ?
Make sure the tenant takes on responsibility of both cleaning and maintaining. When they don't take the money frome the bond.

Are there Insurance hassles to deal with ?
Not yet, I block it out of my mind, whilst having my head deep in the sand.

Does it really depend on where the Property is? eg Cairns vs Melbourne
I would say so, although Victorians in general are strange, and when I lived there, I would often see beaches busy on a pretty cold day, I suppose the blood thins, and the body adjusts.

Would you as an IP investor generally not touch one with a 40' pole ? (IP with a pool that is)
If I had my time all over again NO!!
 
From a landlords point of view I agree that having an IP with a pool is loaded with potential problems. When a filter goes it can cost you plenty. However does it add to the rent, my answer is definately yes, at least here in Brisbane. In summer time you can add 20,30 even more per week for a pool and I'd suggest you could/would get it.

About 7 yrs ago I sold my PPOR and for various reasons I rented for awhile and bought IP's instead. I thought I would take the opportunity to have a property with a pool, sort of try before you buy.:D It was so hard finding a place with a pool. We rented two different places with pools and on the second occassion we paid a high rent to get it. I had to have a monthly service agreement also with the local pool company.

Properties with pools have become highly sought after in recent years, both for rent and sale, and are not the bugbear they may have been in the past. They do now add value, both for saleability and rent.

In saying that,......... I wouldn't have one in my IP.:D

Kev

www.nundahrealestate.com.au
 
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Also note that the Tax Office has recently said they wont allow claims for depreciation or repairs to Pools/Spas.. they dont consider them central to the Income Producing Activity.

Duncan.
 
Adarno !

"Victorians in general are strange"

Maybe a little harsh coming from a crow eater!

Hell we let you into the AFL with good grace, so please be kind!

Cheers Foxy
 
The thing that concerns me about pools is that tenants may want to aviod eachother and hence the pool may be not be appreciated as much and tenants may feel they are paying extra rent for nothing. I think a certain degree of annonimity exists in a block of flats for example and having to share a pool with other tenants, some of whom may despise eachother, concerns me from a risk perspective. A little negative I admit, hey but these are realities of life. If you dont like your neighbour and feel you have to go to a public pool instead just to aviod them while they use the in grounds pool, well seems like a bit of dicinsentive to be renting the property for the price that would include the pool.
 
Originally posted by rossv
hi kev,

hehe....you might want to edit your post :)
From a landlords point of view I agree that having an IP is loaded with potential problems



Maybe he meant "Inground Pool" :)
 
Speaking as a mum small kids for a minute, I can't think of a worse thing to have in the backyard. The fences I've seen always seem to be in need of repair, my children (the youngest particauly) are climbers, so nothing could be left in the backyard for them to drag over.

I'd be worried and constantly on the lookout.

Why limit your potenial market? Sure some people might like a people (and I can see Kevin's POV in BNE), but that's a smaller number of people than the entire rental market.

Jas
 
Hello
Sometimes niche markets are where you can make good money.
For example when I get around to sub-dividing a block I have, I will put serious consideration to making the town houses wheel chair accessable, now thats a tiny part of the market yet I reckon a premium could be charged.
Currently disabled people have 2 main choices go into specialised care, or modify a house they own that is not purpouse built. I wonder how many disabled people would like to rent, and live independantly of specialised care.
During the summer months I would say the pool I have adds an extra 50$ per week to my rent ($450), trying to set the lease to expire just before summer is the hard part.
Regards Adam
 
Hello foxysilvers

I am afraid I am about the only South Australian that does not follow football. I actually take peverse pleasure in seeing the Crows, and Port power loose, when I lived in Vic (mornington Peninsula) I had a few friends who followed Collingwood, and back then I used to like seeing them loose, Im not to sure why it made me feel so good, might of been because my freinds were so rabid and feral about it, they even had real Collingwood tatoos.
Talking of Victoria, I cannot believe how much Melbourne has changed since I was there in 1996, parts of it are like Las Vegas, if anyone ever has to Travel there I highly reccomend the Savoy Hotel, I found it by accident, its twice as good as some hotels, and is half the price.
 
AdaranO1

Only joking ....no offence!

You are right about Collingwood supporters........but there are a new upmarket breed of them these days...........no spelling mistakes on their tattoos and all adults have their front teeth.

Cheers and good investing

Foxy
 
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