As a landlord, you may find yourself in a dilemma when your tenants ask to install a hot tub on your rental property. Even though it can produce high tenant satisfaction and cost savings, hot tub installation has potential risks. If the hot tub malfunctions or brings about damage to the property, you may be left with costly repairs and legal disputes. Plus, poor tenant maintenance can result in hygiene concerns or safety hazards.
At any rate, before coming to a decision, it’s vital to go over all the probable risks and benefits of allowing your tenants to install a hot tub. Deem consulting with legal or insurance professionals to really make sure you are protected in case of any issues.
For property owners, deciding if tenants can have a hot tub depends on considerable factors. There are really good reasons for allowing or not allowing it. Here are some considerations for each option:
Reasons to Allow Tenants to Have a Hot Tub:
- Attracting and Retaining Tenants: Endowing amenities, for instance, a sauna bath can make your property more appealing to potential tenants, letting you charge higher rent and retain tenants for sustained periods of time.
- Increased Property Value: Installing a hot tub can boost the overall value of your property, which can be worthwhile if you plan to sell in the future.
- Competitive Advantage: In lots of rental markets, putting up a hot tub can give your property a competitive edge over others, helping it become more appealing and get rented more quickly.
- Tenant Satisfaction: Tenants who are fond of the luxury of a hot tub may be more delighted with their living arrangements, which could induce fewer complaints and more delightful relationships.
Reasons Not to Allow Tenants to Have a Hot Tub:
- Maintenance and Costs: Hot tubs call for regular maintenance, for example, cleaning, water treatment, and impending repairs. You may need to pay for these costs or pass them on to your tenants, which could overwhelm and frighten a bunch of 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 buy additional insurance coverage to protect yourself.
- Potential Property Damage: There’s a risk that the sauna bath could damage the property, for example, the deck or plumbing, which may cause costly repairs.
- Local Regulations: Certain local municipalities and homeowners’ associations may have regulations or restrictions on putting up and using hot tubs. It’s important to check and keep up with any such rules.
- Increased Utility Costs: Hot tubs consume electricity and water, which could contribute to higher utility bills. Resolve whether you or the tenant will cover these costs.
Assume you are planning on allowing your tenants to include a hot tub on your property. If that is so, there are several weighty considerations to take note of, for example, ownership, the lease agreement terms, the removal and restoration process, cost responsibilities, and the approval process.
Setting up definite and clear guidelines and rules in the lease agreement is recommended if you want to permit hot tub installation. This can include salient issues such as maintenance and repair, responsibilities, and usage restrictions, which are important to ensure the safety of your tenants and protect your property.
If you’re managing rental properties in Santa Monica and would want more insight on how to write your lease agreement, the Santa Monica property managers at Real Property Management West San Fernando Valley can help. Contact us online or call us at 818-727-0100 today.
Originally Published on July 3, 2020