As a landlord, you may run into a complex issue when your tenants ask to install a hot tub on your rental property. While it is true that it can elicit the best tenant satisfaction and cost savings, hot tub installation has imminent risks. If the hot tub malfunctions or causes damage to the property, you may be left with costly repairs and legal disputes. On top of that, poor tenant maintenance can create hygiene concerns or safety hazards.
Consequently, it’s crucial to think about all the imminent risks and benefits of allowing your tenants to install a hot tub. Mull over consulting with legal or insurance professionals to ascertain you are not affected in case of any issues.
For property owners, deciding if tenants can have a hot tub is based upon a handful of factors. There are acceptable reasons for allowing or not allowing it. Here are several considerations for each option:
Reasons to Allow Tenants to Have a Hot Tub:
- Attracting and Retaining Tenants: Endowing amenities similar to a sauna bath can make your property more appealing to potential tenants, easily allowing you to charge higher rent and retain tenants for extensive periods.
- Increased Property Value: Installing a hot tub can boost the overall value of your property, which can be beneficial if you plan to sell in the future.
- Competitive Advantage: In various rental markets, putting up a hot tub can give your property a competitive edge over others, helping it to effectively stand out and get rented more quickly.
- Tenant Satisfaction: Tenants who love the luxury of a hot tub may be more elated with their living arrangements, which could give rise to lower complaints and excellent relationships.
Reasons Not to Allow Tenants to Have a Hot Tub:
- Maintenance and Costs: Hot tubs need regular maintenance, like cleaning, water treatment, and expected repairs. You may need to take up these costs or pass them on to your tenants, which could intimidate quite a few renters.
- Liability and Safety Concerns: Hot tubs can bring about safety risks. There is a risk of accidents, injuries, or even lawsuits if someone gets hurt. You may need to have additional insurance coverage to shield yourself.
- Potential Property Damage: There’s a risk that the sauna bath could damage the property, for illustration, the deck or plumbing, which may need costly repairs.
- Local Regulations: Different local municipalities and homeowners’ associations may have regulations or restrictions on setting up and using hot tubs. It’s vital to check and follow any such rules.
- Increased Utility Costs: Hot tubs consume electricity and water, which could elicit higher utility bills. Consider whether you or the tenant will cover these costs.
Assume you are actually thinking about allowing your tenants to set up a hot tub on your property. In such cases, there are several really important considerations to always keep in mind, namely, ownership, the lease agreement terms, the removal and restoration process, cost responsibilities, and the approval process.
Instituting certain guidelines and rules in the lease agreement is highly advisable if you make a choice to permit hot tub installation. This can constitute vital issues, as an illustration, of maintenance and repair, responsibilities, and usage restrictions, which are very important to ensure the safety of your tenants and protect your property.
If you’re managing rental properties in Baxter and would like more insight on how to write your lease agreement, the Baxter property managers at Real Property Management Deluxe can help. Contact us online or call us at 218-454-7368 today.
Originally Published on July 3, 2020
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
