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Is it Worth Installing a Pool on Investment Property in Tasmania?
An investment property is just that: an investment. That means you want to maximise returns and ultimately get a great resale value if you decide to sell up. Will a pool add to your returns on investment property in Tasmania? Your property management company gives you the lowdown.
How Much Will Tenants and Prospective Buyers Want That Pool?
The amount that people will be willing to pay extra for a pool when they rent or buy your property depends on how much they will value having a pool. While many Aussies adore their swimming pools, Tasmania has a mild climate that’s relatively cool for much of the year.
That means you’re going to see greater reluctance to part with more cash for a home with a pool – in most cases, anyway.
Higher Rental OFten Fails to Cover Maintenance Fully
As the property owner, you or your property management company will be responsible for maintenance that goes beyond the basic cleaning of the pool. Pool maintenance can be wildly expensive. For example, mending leaks is a massive and costly project.
Once again, it’s hard to generalize, but as a general rule of thumb, the higher rent you’ll get could fall far short of the pool’s maintenance costs.
What About Your Property Value When You Sell?
There’s no doubt that a well-looked-after pool looks attractive, but it could make it harder to sell your property when the time comes to look for a buyer. Home buyers who want a pool will be quite happy to have one installed themselves. Those who don’t want a pool, on the other hand, might cross your property off their list simply because it has one.
A Pool Could Add to Your Risks
As property managers, we know the laws you need to comply with for a safe pool area. But there’s always a chance that some unfortunate accident might happen, and your tenants decide that you should be held liable. Even supposing that you win your case, nobody likes having to deal with a lawsuit.
What if your Investment Property in Tasmania Already has a Pool?
As you may have noticed, we’re not convinced that a pool will improve your return on investment. But what if there is already a pool on your investment property?
First up: leave it to us. We know the market, we know how to cover instances in which liability might be an issue, and we know how to price rental for a property with a pool. Your tenants certainly should pay more if only to help you to meet the maintenance costs you’ll be responsible for.
Next, we’ll use an adjusted lease agreement that clearly indicates which pool-related expenses your tenant must take care of and which ones you’ll cover. We’ll talk this through with you, but we recommend contracting a pool maintenance company to take care of the day-to-day pool chores. Remember, if a tenant neglects a swimming pool, getting it back to its former glory can be costly.
Pool or No Pool, We’ll Max your ROI on Property in Tasmania
Investment property in Tasmania, and especially in Hobart and surrounds has huge potential to generate income. While we wouldn’t recommend going to the expense of installing and maintaining a pool on a rental property, we can also help you to minimise risk and improve your chances of making small gains on a property with a pool.
When you’re talking about property management for investment property in Tasmania, start talking to Baxton. We take care of your interests and we’re always ready to give advice when needed.
- Compliance: Swimming pool safety
- Rental Property Owners – When Will You Start Seeing a ROI?
- 4 bright ideas to increase your property’s ROI
We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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