Making a Splash: How Installing a Swimming Pool Can Increase the Value of Your Rental or Resale Property – A Comprehensive Guide”
Are you a Southern California property owner considering installing a swimming pool?
While a pool may seem like a luxury item, it can actually be a wise investment for both rental and resale properties. In this comprehensive guide, we’ll explore how having a swimming pool can increase your property value and what you need to know before investing.
Owning a home with a swimming pool can add both aesthetic and monetary value to the property. The addition of a below-ground swimming pool is a feature that many homeowners and renters desire, particularly in warm weather areas. As a landlord or homeowner, it’s important to understand the benefits a swimming pool can offer for both rental and resale properties.
The Value of a Swimming Pool for Rental Properties
As a landlord, having a swimming pool in a rental property can be a great investment. According to Zillow, nationwide, properties with a swimming pool can receive up to a 7-50% premium on rental income in certain markets. This is particularly true in warmer climates where swimming is a popular pastime. Tenants may choose to rent a home with a pool over one without because it provides added entertainment and leisure opportunities.
If you’re looking to rent a home in Los Angeles, you may be wondering if it’s worth paying extra for a property with a pool. The answer is yes, on average, pool homes do rent for more than homes without a pool.
According to Zillow, the median rental price in Los Angeles for a home with a pool is $6,000 per month, while the median rental price for a home without a pool is $4,050 per month. That’s a significant difference of $1,950.
Another source, RentCafe, found a similar difference in rental prices. Their data showed that the average rent for a Los Angeles apartment with a pool was $2,839 per month, compared to $2,191 per month for an apartment without a pool.
There are several factors that can influence rental prices, such as location, size, and amenities. However, if you have the option to rent a pool home in Los Angeles, it’s worth considering the extra cost for the added luxury and potential increase in value.
Furthermore, having a swimming pool in a rental property can make it more attractive to tenants, potentially decreasing vacancy rates and increasing tenant satisfaction. Along with these financial advantages, a swimming pool can also add an element of luxury to the property, making it more desirable to potential renters.
The Value of a Swimming Pool for Resale Properties
For homeowners looking to sell their property, having a swimming pool can increase the value of the home. Homes with a swimming pool are sought after in many markets, particularly in warm weather areas like California, Florida, and Arizona. According to a study conducted by the National Association of Realtors, homes with a pool can sell for up to 11% more than those without a pool.
However, it’s important to keep in mind that the addition of a swimming pool may not be advantageous in all markets. In areas with cooler or less predictable weather, a swimming pool may not be seen as desirable and may even be viewed as a liability for potential buyers. As with any renovation or addition to a property, it’s important to consider the local market when deciding whether to invest in a swimming pool. If you are looking to sell a home, a swimming pool can make a property more attractive to potential buyers, particularly in markets where outdoor living spaces are popular. If you are interested in purchasing a home with a pool for resale purposes, it’s important to note that the initial cost of installing a pool may not be recouped in full. However, a pool can still provide a solid return on investment.
While a swimming pool can add value to a property, it’s important to consider the maintenance costs associated with owning a pool. The cost of maintenance can vary depending on the size of the pool, the location, and the frequency of use. According to HomeAdvisor, the annual cost of maintaining a pool can range from $500 to $4,000 per year. This includes the cost of chemicals, cleaning, and energy consumption. It’s essential for pool owners to properly maintain their pool to prevent damage and decrease long-term expenses.
Sales Trends in Southern California Pool Properties Since COVID-19
Since COVID-19, homes with outdoor living spaces have become increasingly attractive to buyers. With many people spending more time at home, outdoor spaces like swimming pools have become more desirable. In Southern California specifically, homes with swimming pools have seen a significant rise in value. According to Zillow, swimming pool homes in Los Angeles have increased in value by 22.2% since May 2020, while homes without pools have increased in value by 17.8%.
In conclusion, a swimming pool can be a great investment for Southern California property owners. By attracting high-end renters, increasing your resale value, realizing energy savings, and making your property stand out from the competition, a pool can be a smart financial decision. However, it’s important to weigh the costs of maintaining a pool and research reputable contractors before making the upgrade.
1. Zillow. (2023). Los Angeles County CA Rental Listings. https://www.zillow.com/los-angeles-county-ca/rentals/
2. RentCafe. (2023). Los Angeles, CA Rental Market Trends. https://www.rentcafe.com/average-rent-market-trends/us/ca/los-angeles/
3. “Swimming Pool Buyers Guide: How a Pool Can Increase Your Home’s Value.” HGTV. Accessed Mar 21, 2023. https://www.hgtv.com/design/outdoor-design/landscaping-and-hardscaping/how-a-swimming-pool-can-impact-your-homes-value. This article highlights how a swimming pool can improve property value, and offers tips on designing and maintaining a pool to maximize its value.
4. “Swimming Pool Renovations That Boost Your Home’s Value.” InTheSwim. Accessed Mar 21, 2023. https://blog.intheswim.com/swimming-pool-renovations-that-boost-your-homes-value/. This article focuses on how renovating or updating a swimming pool can increase property value, with tips on smart upgrades and design choices that appeal to home buyers.
5. “The Value of Adding a Swimming Pool to Your Home.” The Balance. Accessed Mar 21, 2023. https://www.thebalance.com/the-value-of-adding-a-swimming-pool-to-your-home-1799016. This article explains how a swimming pool can increase property value, and offers advice on determining whether or not to install a pool based on the local market and other factors.
6. “Adding Value to Your Home with a Swimming Pool.” Forbes. Accessed Mar 21, 2023. https://www.forbes.com/sites/trulia/2015/06/11/adding-value-to-your-home-with-a-swimming-pool/?sh=22d240f4257b. This article discusses the ways in which a swimming pool can increase property value, with real estate agents and experts giving their insights on the market impact of installing a pool, and best practices for adding a pool that will appeal to buyers.
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