As a landlord, you may struggle with a dilemma when your tenants ask to install a hot tub on your rental property. Whereas it can give rise to maximum tenant satisfaction and cost savings, hot tub installation has likely risks. If the hot tub malfunctions or causes damage to the property, you may be left with costly repairs and legal disputes. Aside from that, poor tenant maintenance can set off hygiene concerns or safety hazards.
If that is so, prior to deciding, it’s critical to look into all the likely risks and benefits of allowing your tenants to install a hot tub. Think seriously about consulting with legal or insurance professionals to see that you are well-protected in case of any issues.
For property owners, deciding if tenants can have a hot tub hangs on several factors. There are solid reasons for allowing or not allowing it. Here are a few considerations for each option:
Reasons to Allow Tenants to Have a Hot Tub:
- Attracting and Retaining Tenants: Imparting amenities like a sauna bath can make your property more appealing to potential tenants, permitting you to charge higher rent and retain tenants for prolonged periods.
- Increased Property Value: Installing a hot tub can increase the overall value of your property, which can be favorable for you if you plan to sell in the future.
- Competitive Advantage: In various rental markets, installing hot tubs can give your property a competitive edge over others, helping it get easily noticed and get rented more quickly.
- Tenant Satisfaction: Tenants who really like the luxury of a hot tub may be more delighted with their living arrangements, which could lessen trivial complaints and enhance good relationships.
Reasons Not to Allow Tenants to Have a Hot Tub:
- Maintenance and Costs: Hot tubs call for regular maintenance, in particular cleaning, water treatment, and probable repairs. You may need to take on these costs or pass them on to your tenants, which could keep away some renters.
- Liability and Safety Concerns: Hot tubs can pose safety risks. There is a risk of accidents, injuries, or even lawsuits if someone gets hurt. You may need to procure additional insurance coverage to free yourself from any danger.
- Potential Property Damage: There’s a risk that the sauna bath could damage the property, for instance, the deck or plumbing, which may lead to necessary costly repairs.
- Local Regulations: A number of local municipalities and homeowners’ associations may have regulations or restrictions on affixing and using hot tubs. It’s important to check and carefully comply with any such rules.
- Increased Utility Costs: Hot tubs consume electricity and water, which could give rise to higher utility bills. Reach a decision on whether you or the tenant will cover these costs.
Assume you are mulling over allowing your tenants to set up a hot tub on your property. If so, there are several major considerations to keep in mind, in particular, ownership, the lease agreement terms, the removal and restoration process, cost responsibilities, and the approval process.
Setting clear guidelines and rules in the lease agreement is especially recommended if you ever decide to permit hot tub installation. This can encompass basic issues, for instance, maintenance and repair, responsibilities, and usage restrictions, which are salient to ensure the safety of your tenants and protect your property.
If you’re managing rental properties in Hendersonville and would like more insight on how to write your lease agreement, the Hendersonville property managers at Real Property Management Investor’s Choice can help. Contact us online or call us at 615-810-9578 today.
Originally Published on July 3, 2020
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