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Tenant-Requested Hot Tubs: Landlord’s Decision-Making Guide

Young Women Relaxing in Hot Tub on Rental Property

As a landlord, you may come face to face with a dilemma when your tenants ask to install a hot tub on your rental property. Despite that it can trigger terrific tenant satisfaction and cost savings, hot tub installation has a few possible risks. If the hot tub malfunctions or produces damage to the property, you may be left with costly repairs and legal disputes. Besides that, poor tenant maintenance can cause hygiene concerns or safety hazards.

Consequently, before you come to a decision, it’s very important to take into consideration all the possible risks and benefits of allowing your tenants to install a hot tub. Take into account consulting with legal or insurance professionals to make sure you are well-covered in case of any issues.

For property owners, deciding if tenants can have a hot tub largely depends on multiple factors. There are sound reasons for allowing or not allowing it. Here are a handful of considerations for each option:

Reasons to Allow Tenants to Have a Hot Tub:

  1. Attracting and Retaining Tenants: Putting forward amenities, for example, a sauna bath can make your property more appealing to potential tenants, enabling you to charge higher rent and retain tenants for sustained periods.
  2. Increased Property Value: Installing a hot tub can expand the overall value of your property, which can be useful if you plan to sell in the future.
  3. Competitive Advantage: In various rental markets, putting up a hot tub can give your property a competitive edge over others, helping it to be enticing and get rented more quickly.
  4. Tenant Satisfaction: Tenants who appreciate the luxury of a hot tub may be happier with their living arrangements, which could bring on a reduction of complaints and delightful relationships.

Reasons Not to Allow Tenants to Have a Hot Tub:

  1. Maintenance and Costs: Hot tubs call for regular maintenance, as an illustration, cleaning, water treatment, and imminent repairs. You may need to put up with these costs or pass them on to your tenants, which could scare plenty of renters.
  2. 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 make a purchase of additional insurance coverage to protect yourself.
  3. Potential Property Damage: There’s a risk that the sauna bath could damage the property, that is to say, the deck or plumbing, which may entail costly repairs.
  4. Local Regulations: A few local municipalities and homeowners’ associations may have regulations or restrictions on setting up and using hot tubs. It’s significant to check and fulfill any such rules.
  5. Increased Utility Costs: Hot tubs consume electricity and water, which could instigate higher utility bills. Decide whether you or the tenant will cover these costs.

Assume you are seriously considering allowing your tenants to set up a hot tub on your property. Consequently, there are several substantial considerations to always keep in mind, as an illustration, ownership, the lease agreement terms, the removal and restoration process, cost responsibilities, and the approval process.

Putting in well-defined guidelines and rules in the lease agreement is hugely recommended if you select to permit hot tub installation. This can include crucial issues, for illustration, 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 Fort Collins and would like more insight on how to write your lease agreement, the Fort Collins property managers at Real Property Management Property of the Rockies can help. Contact us online or call us at 970-658-0410 today.


Originally Published on July 3, 2020

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