Does a swimming pool add to the value of a rental house?

Our Realtor Jeff Sutherlin of EXP Realty had a listing over the weekend that includes a pool (sold in one day, call Jeff if you need a Realtor in Phoenix, Arizona). Is a pool a net positive in a rental? In other words, can you get a rent bump to offset the cost of a pool service? What about the resell impact? What about liability?

Here’s our Property Manager Sherman Weekes of Crest Premier Properties take:

“At this time of the year the homes with pools rent more quickly than homes without pools. The difference in rent in some areas for a house with and without pools is usually $150 -$250, however it depends on the pool and. Depending on pool size the monthly service range from $85-$110.  In addition, you will need to have the occasional filter cleaning and other maintenance done which from our experience can cost an additional $25 -40 monthly. Yes, the rent bump do outweigh the cost of the pool maintenance. In the event you have to sell the pool adds great value to the property.”

Our Demographic/Appraisal expert Ryan Barlow disagrees on pools adding value to the property:

“I’ll tell ya dollar for dollar adjustments are nonexistent for swimming pools when appraising a home. I’ve seen a lot of money spent on landscaping and fancy pools get relatively little back in contributory value.

This is especially prevalent when appraising model homes with all the design center upgrades. Most of that money spent translates into whatever the highest comp in the subdivision is with a bump up.

Adjustments will depend on the age and condition of the pool. But more importantly, what the comps with pools sell for above the comps without pools. And if you can’t find enough comps with similar quality pools, or you can’t find any comps with pools, you may run into functional obsolescence. It’d be like building a 6-car garage in a neighborhood that only has 2 and 3-car garages. The comps in the neighborhood would basically show no demand for more than 3 garage parking spaces in the neighborhood.”

We have always avoided pools in rentals, mostly from the liability issue. We might have to rethink that position. Certainly, in the Phoenix area a pool is a big plus, especially for a tenant with a family. We have always looked for community pools since you get the advantage without the direct cost or liability.

Here’s what some other people think: