Short Term Rental Mesa Arizona Question

[Jeff Murray]

Hey guys Im working on a couple STR deals Im wondering how you are seeing the market and if having a pool is worth the extra expense on maintaining?

[Sarah Kensinger]

From my understanding you about have to install a pool in AZ for a STR. I don't know much about the market but do know the right amenities there can make your break your revenue.

[Michael Baum]

Hey @Jeff Murray, what do the other places near your offer? If they all have a pool, then you should to.

If they don't, then you can set yourself apart by adding one. 

[Thomas Shepard]

I would venture to say if you are having any trouble leasing or booking your property, adding a pool will probably not fix the problem. Could it help? Yes. But if it brings in a few more bookings, does that pay for the added expense of adding a pool and cost of maintaining it? For STR, I would look for how you can make it a truly unique stay to attract bookings. If STR is not working, look to rent as a furnished mid-term rental or something that could bring more value than a long-term lease.

[Jeff Murray]

@Thomas Shepard I think you are right if the property already has it then fine but if it doesn't then like you said for the extra value, I do not think it pays off in the long run. 

[Kristen L Garner]

I've done the loans for a handful of Phoenix STRs that didn't have pools and their 12 month reports still had great cash flows!

[Colleen F.]

@Kristen L Garner  I am curious about the profile of the properties you have seen do well without a pool. I would imagine smaller units with good locations do well.  I think it would be harder with larger rentals.  Or it could be offset by community pools in the area. Imagine not just a pool in the winter people want it heated.

[Kristen L Garner]

Quote from @Colleen F.:

@Kristen L Garner  I am curious about the profile of the properties you have seen do well without a pool. I would imagine smaller units with good locations do well.  I think it would be harder with larger rentals.  Or it could be offset by community pools in the area. Imagine not just a pool in the winter people want it heated.

 The majority were 3bd/2bth in good locations.  I'm not sure if they were near community pools!

[Mason Weiss]

Quote from @Jeff Murray:

Hey guys Im working on a couple STR deals Im wondering how you are seeing the market and if having a pool is worth the extra expense on maintaining?

Having a pool is helpful but not required. You will struggle more in summer months but outside of that you will reap all the benefits of a AZ STR.

[Dan Maciejewski]

What you want to do is compare ADR between pools and no pools for similar properties.  Also, try to see if pools have a higher occupancy rate.  In my area, it's been around 30% ADR difference and a slight (<10%) occupancy increase. But, we are 4-season pool-use rentals.  A lot of people come here in the winter and want to use the pools.  In a region that only uses the pool for 1-2 seasons, it may not be worth the cost.  I don't know what your winters are like so you'd have to look!

It may be useful to chat up a few (local) property managers to see what they think.

[John Underwood]

@Jeff Murray

Are they existing STR'S?

If so how are they doing now without the pool?

How much more can you get with a pool and what would your payback be?

[Jeff Murray]

Hey guys thank you for the feedback. They are existing STR and it seems that the house with the pool was preferred. After reviewing different homes the pool for the climate and the area is the way to go. We are moving forward with the home with the pool.