Hot Tubs on a Vacation Rental

[Isaac Sanchez]

Hello 

To the landlords that do vacation rentals is it worth putting in a Hot Tub.  I know for me its a must to have one when I want to get away  However, I do hear it can increase the electric bill a lot.  Do you think its worth having a Hot Tub in a vacation rental?  thank you 

[Mike Shemp]

@Isaac Sanchez

Some questions to consider:
a.  Will the hot tub increase your bookings if you do not increase the rate, and therefore give you more revenue for the year?

b.  Will the hot tub let you increase your nightly rate, and also increase the bookings you receive per year?

c.  How will your expenses be impacted? Will your insurance go up? How much will chemicals cost? How much will it cost to pay someone to maintain it for you? Are there any local building codes that will require you to fencing or signage around it?

Once you know the answer to a, b, and c then use an Excel spreadsheet to figure when you will get your money back from the hot tub, and when does it become an asset in the sense that it is putting money in your pocket, and how long will that last factoring in the life of a hot tub?

Besides all the Excel calculations, for me if your property already has an unfair advantage or something unique to it that makes you stand out, maybe a well-planned marketing campaign could achieve similar results instead of investing in a hot tub to increase bookings?

For us our markets we are in we do have guests looking for hot tubs, but we just don't want the extra hassle of a hot tub.  If in the future our market gets more saturated and marketing campaigns don't get us the numbers we're looking for, then we might consider it.

Hope that helps a bit.

Mike