As a landlord, you may face a complicated demand when your tenants ask to install a hot tub on your rental property. Even though it may engender high tenant satisfaction and cost savings, hot tub installation has possible risks. If the hot tub malfunctions or brings damage to the property, you may be left with costly repairs and legal disputes. On top of that, poor tenant maintenance can trigger hygiene concerns or safety hazards.
As a consequence, prior to making a decision, it’s important to take into account all the feasible risks and benefits of allowing your tenants to install a hot tub. Study about consulting with legal or insurance professionals to make sure you are free from any legal danger in case of any issues.
For property owners, deciding if tenants can have a hot tub is subject to a great deal of factors. There are really good 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: Having amenities, by way of example, a sauna bath, can make your property more appealing to potential tenants, allowing you to charge higher rent and retain tenants for extended durations.
- Increased Property Value: Installing a hot tub can raise the overall value of your property, which can be practical if you plan to sell in the future.
- Competitive Advantage: In various rental markets, acquiring a hot tub can give your property a competitive edge over others, helping it to perfectly stand out and get rented more quickly.
- Tenant Satisfaction: Tenants who have a great time with the luxury of a hot tub may be more delighted with their living arrangements, which could result in minimal complaints and more desirable relationships.
Reasons Not to Allow Tenants to Have a Hot Tub:
- Maintenance and Costs: Hot tubs require regular maintenance such as cleaning, water treatment, and probable repairs. You may need to take on yourself these costs or pass them on to your tenants, which could disappoint a good deal of renters.
- Liability and Safety Concerns: Hot tubs can denote safety risks. There is a risk of accidents, injuries, or even lawsuits if someone gets hurt. You may need to put money into additional insurance coverage to cover and protect yourself.
- Potential Property Damage: There’s a risk that the sauna bath could damage the property, for instance, the deck or plumbing, which may need costly repairs.
- Local Regulations: A number of local municipalities and homeowners’ associations may have regulations or restrictions on having and using hot tubs. It’s imperative to check and obey any such rules.
- Increased Utility Costs: Hot tubs consume electricity and water, which could generate higher utility bills. Make a decision on whether you or the tenant will cover these costs.
Assume you are really thinking of allowing your tenants to install a hot tub on your property. As a consequence, there are several pertinent considerations to think of such as ownership, the lease agreement terms, the removal and restoration process, cost responsibilities, and the approval process.
Formulating clear guidelines and rules in the lease agreement is really advisable if you determine to permit hot tub installation. This can include vital issues, namely, maintenance and repair, responsibilities, and usage restrictions, which are pertinent to ensure the safety of your tenants and protect your property.
If you’re managing rental properties in East Rockaway and need more insight on how to write your lease agreement, the East Rockaway property managers at Real Property Management Innovation can help. Contact us online or call us at 516-570-9275 today.
Originally Published on July 3, 2020