Renting Out Your Pool House: What You Need To Know

Renting out your pool house can be a great way to generate additional income, especially during the warmer months. However, it's important to carefully consider the potential risks and responsibilities associated with doing so. From a legal standpoint, you must ensure compliance with local regulations and understand your heightened liability as the property owner. Installing safety features, such as fences and alarms, is crucial to mitigate safety risks and protect yourself and your tenants. Additionally, regular maintenance and proper insurance coverage are essential to maintaining your pool and reducing potential liabilities. By taking these factors into account and putting the necessary measures in place, you can make an informed decision about whether renting out your pool house aligns with your goals and risk tolerance.

Pros and cons of renting a house with a pool

Renting a house with a pool has its advantages and disadvantages. On the one hand, a pool can add value to the property and attract high-quality, long-term tenants. On the other hand, it also brings additional maintenance costs, safety hazards, and insurance requirements. Here is a detailed look at the pros and cons of renting a house with a pool:

Pros:

• Attract Quality Tenants: A pool can be a desirable amenity for tenants, especially families, and can help attract high-quality, long-term tenants.
• Increased Rental Value: The addition of a pool can allow landlords to charge higher rent and increase their overall return on investment.
• Impressive Curb Appeal: A pool can make the property stand out and enhance its overall aesthetic appeal.
• Reliable Investment Choice: A pool can be a long-term investment that maintains its value with proper maintenance.

Cons:

• Higher Maintenance Costs: Pools require regular and costly maintenance, including cleaning, chemical adjustments, and equipment repairs.
• Safety Hazards: Pools pose a risk of injuries and drowning, especially for children. Landlords must take proactive measures to ensure safety, such as installing safety features, providing safety guidelines, and complying with local pool safety laws.
• Increased Insurance Requirements: Landlords typically need extra insurance coverage for pools, which can be expensive.
• Potential Liability Issues: Landlords may face lawsuits if accidents or injuries occur in the pool, even by trespassers.
• Energy Costs: Operating a pool pump, heater, and lights can increase energy bills.
• Time Commitment: Maintaining a pool can be time-consuming, requiring regular attention to cleanliness, chemical levels, and equipment functionality.
• Potential Health Risks: Pools can be breeding grounds for recreational water-related illnesses, such as ear and respiratory infections, rashes, and diarrhoea.
• Resale Value: While a pool may increase rental value, it may not significantly boost the home's resale value and could even deter potential buyers due to the associated maintenance costs.

Understanding property owner liability

Property owner liability refers to the legal responsibility of landlords or property owners to ensure the safety of their premises and protect individuals from harm. This liability extends to tenants, visitors, and members of the public who may be affected by the property owner's negligence. In the context of renting out a pool house, the liability risks are heightened due to the potential dangers associated with swimming pools.

Key Considerations for Renting a Pool House

• Fix Concerns Promptly: As a property owner, it is your responsibility to address any safety concerns or maintenance issues with the pool promptly. This includes fixing issues with the pool itself, as well as ensuring the surrounding area is safe and secure.
• Regular Maintenance: Regular pool maintenance is crucial to prevent accidents and ensure the pool is in good condition. This includes checking the pump and motor, inspecting and cleaning the pool filter, testing water quality, and maintaining proper chemical levels.
• Compliance with Local Laws: Familiarize yourself with local pool safety laws and regulations. This includes understanding the requirements for barriers and fences, and safety signage. Complying with these laws is essential to mitigate liability risks.
• Provide Safety Information: Offering a pool safety brochure or conducting a pool orientation for tenants can help educate them about safe pool usage and maintenance. It is also important to communicate openly with tenants and encourage them to report any concerns or issues promptly.
• Adequate Insurance Coverage: Consult with an insurance provider to ensure you have adequate liability coverage for a rental property with a swimming pool. The standard liability coverage may not be sufficient, and you may need to purchase additional coverage specifically for pool-related liabilities.
• Lease Addendum: Include a detailed lease addendum that outlines the rules, responsibilities, and expectations regarding the pool. Specify the importance of pool safety, and clearly define the maintenance responsibilities of both the property owner and the tenants.
• Emergency Preparedness: Consider creating an emergency action plan for pool accidents or incidents. Providing safety equipment, such as a first aid kit and life rings, is also essential to have on hand in case of emergencies.

By understanding and addressing these considerations, property owners can take proactive measures to reduce liability risks and ensure the safety of their tenants and guests when renting out a pool house.

Insurance coverage

If you're considering renting out your pool house to guests, it's important to understand the insurance implications. Here are some key points about insurance coverage to consider:

Understanding Insurance Requirements

Before renting out your pool house, it is crucial to review your insurance policy and understand any additional requirements or exclusions related to swimming pools. Not all insurance companies will cover rental properties with pools, so you may need to shop around for the right provider. Contact your insurance company and be transparent about your plans to rent out the pool house. Ask about any specific criteria or safety measures they require to ensure coverage.

Increased Liability Coverage

Having a pool on your rental property significantly increases your liability risks. Accidents and injuries are more likely to occur, and as the property owner, you may be held responsible. It is highly recommended to increase your liability coverage to protect yourself financially in case of any pool-related incidents. Consult with a licensed insurance professional to determine the appropriate level of liability protection, which may be upwards of $500,000.

Understanding Attractive Nuisance

Insurance companies consider swimming pools an "attractive nuisance," similar to playgrounds and trampolines. This means that pools can attract children and expose them to potential dangers. As a result, insurance companies have stringent underwriting and insurance requirements for properties with pools. Be sure to understand these requirements and take necessary precautions to minimize risks.

Compliance with Local Laws and Regulations

It's important to research and comply with any local laws and regulations regarding swimming pools. For example, some states and counties mandate the installation of fences or barriers around pools to ensure safety. These regulations may specify minimum height requirements and other specifications for the barriers. Failure to comply with these laws may affect your insurance coverage and increase your liability in the event of an accident.

Safety Precautions and Maintenance

To minimize risks and demonstrate your commitment to safety, consider implementing various safety measures. This can include installing a self-closing and self-latching gate, using a pool cover, posting safety signs, and providing rescue equipment. Regular maintenance is also crucial to keep the pool in good condition and reduce the likelihood of accidents.

Understanding Coverage Limits

When reviewing your insurance policy, pay close attention to the coverage limits for different scenarios. For instance, understand the limits for personal liability coverage, medical payments coverage, and other structures coverage. If the limits seem insufficient, consider increasing your coverage or purchasing a personal umbrella policy, which provides additional liability protection beyond your standard policy.

Regular Communication with Insurance Provider

Maintain open communication with your insurance provider. Inform them of any changes or updates to your property, including the addition of a pool. Failure to disclose the existence of a pool could be considered material misrepresentation, giving your insurer a valid reason to deny claims or cancel your policy.

Lease addendums

• Specify that the use of the pool is at the tenant's own risk and that the landlord is not liable for any injuries sustained by tenants, guests, or occupants.
• Outline any age restrictions for unsupervised children and ensure tenants are aware of their duty of care.
• Emphasize the requirement for tenants and guests to adhere to the manufacturer's instructions for pool use, including any safety guidelines and restrictions.
• Detail the rules and expectations for pool usage, such as keeping the pool area secure and the gate locked at all times.
• Define the maintenance responsibilities of both the tenant and the landlord, including the frequency of maintenance tasks and the procedure for reporting necessary repairs.
• Inform tenants of the consequences of failing to adhere to the rules and guidelines outlined in the addendum, such as the revocation of pool privileges.
• Include information about inviting guests to use the pool, considering what is reasonable to ensure fairness for all residents.
• Outline any security procedures for accessing the pool area, such as the use of keys or security codes, and ensure tenants understand their responsibility for keeping the pool area secure.
• Provide instructions for proper pool coverage when not in use, and the secure storage of cleaning chemicals.
• Outline the financial liabilities and procedures should any pool equipment be damaged.

Remember, the specific content of your lease addendum may vary depending on your local laws and regulations, so it is always a good idea to consult with a legal professional or refer to your local legislation.

Safety and maintenance

Safety:

• Install pool barriers: Construct and maintain physical barriers such as pool safety fences, gates, power safety covers, and alarms. Ensure the fence is at least four to five feet high, with no handholds or footholds that could assist in scaling it.
• Secure the pool area: Install a self-closing and self-latching gate that is out of a child's reach. Ensure all doors leading to the pool area have alarms and self-latching devices with locks placed high up.
• Anti-entrapment measures: Install anti-entrapment drain covers and safety release systems to protect against drain entrapment. Keep children away from pool drains and other openings.
• Supervise children: Never leave children unattended around the pool. Stay within arm's reach of young children and non-swimmers. Ensure everyone knows how to swim and takes water safety courses.
• Emergency preparedness: Keep rescue equipment, such as life rings and floats, easily accessible near the pool. Have a phone by the pool with emergency numbers posted, along with your address. Ensure everyone in the household knows basic first aid and CPR.
• Pool rules: Institute and communicate clear pool rules, such as no diving, always swimming with a buddy, and no intoxicated swimming. Emphasize "use at your own risk" and "children must be supervised" policies.

Maintenance:

• Regular upkeep: Establish a schedule for weekly or, at minimum, monthly maintenance. Tasks include vacuuming, adjusting chemicals, cleaning filters, skimming, and chlorinating.
• Pump and motor: Regularly check the operation of the pump and motor to ensure they are functioning properly.
• Filter maintenance: Inspect and clean the pool filter at least once a month.
• Water maintenance: Test and adjust water levels, pH levels, water hardness, and dissolved solids as needed. Add chemicals at least monthly.
• Cover when not in use: Use a power safety cover to secure the pool when it is not being used or supervised.

By following these safety and maintenance guidelines, you can help ensure your guests' well-being and the longevity of your pool.

Frequently asked questions