Short-term Rentals: Are Small Dipping Pools / Hot Tubs worth the investment?

Question

As a homeowner who has never owned a pool or hot tub, I am interested in installing one in the backyard of my short-term rental property. However, I am wary of the maintenance cost and added liability that comes with these amenities. The backyard is on the smaller side, but I think a smaller dipping pool / hot tub would work great. Please keep in mind my market is Charleston, South Carolina which tends to be on the warmer side throughout the year.

Any STR investors who have gone through a pool / hot tub installation, would you mind sharing your experience?

Is a smaller dipping pool worth the investment / added liability?
Would a hot tub be easier to maintain / more desirable?
Is a pool / hot tub only advisable for short-term rentals? What about furnished "mid-term"?

Andrew Steffens · Answer

I agree with above.

My market is Tampa/Gulf Beaches which is hot 85% of the year.  Even inside the same market needing a pool depends on the property.  Here, having a pool is never negative or neutral but you can be successful without one in certain circumstances.  Walking distance to the beach?  You can still rent well without a pool.  5-10 min drive from the beach?  You better have a pool.  In an urban setting like Tampa or St Pete?  No pool needed.

As a frequent mountains traveler I will not consider a unit with no view and no hot tub.

I am not experienced in Charleston, but from what I know these would be extras and probably not essential for renting.  Then the question is ROI, so you will need to see occupancy and ADR of similar places, if possible.

Kate Stoermer · Answer

So the question is - what's the ROI. The thing is, that's going to depend.  I've seen markets where it increases occupancy, not ADR, other markets where it drives both, other markets where maybe it makes no difference. It also matters what budget tier you exist within a market - like the $ - $$$$ for restaurants, we intuitively understand the general experience and price point based on those dollar signs. We have something similar but not presented so succinctly in STR. What I mean is you have a property that isn't the "ideal" experience in a market - drive to the beach vs beach access vs beach front.  Economics will play out - the more desirable, the higher overall revenue.  So it depends on a lot. But I suspect, regardless, the mid-term market is not a place for adding expensive amenities; those folks are typically on a strict budget and staying long term; the budget and often, proximity to the purpose for their visit drives booking decisions. The gravy for them would be level of finish and extra amenities but they aren't going to pay substantially more.  That said, stock pools are inexpensive but I'm not sure they are anything more than visual candy for your listing - and perhaps more hassle and most adults won't look at that anything like a hot tub experience.  But sometimes visual candy is enough to get more bookings.   I have contacts who routinely install hot tubs at every STR property and do well; you are in a market where there will be professionals who can help maintain and service a hot tub.  But you'd have to really dig into your market data to decide if its truly a competitive advantage.

John Underwood · Answer

It depends on your property and location.

Do most all your competition have one of these? If so you definitely  need one.

If you or most all of your competition doesn't have one then it's not necessary but it may help set you apart from the competition if you need to increase your occupancy or nightly rate.

Michael Baum · Answer

I can't add a dang thing. Well said everyone else!

JD Martin · Answer

Where in Charleston? As our longtime "favorite city" I have stayed all over the place there and have never had a hot tub, and it didn't phase me one way or the other. Most anything within walking distance of the Battery, IMO no one is going to care about having or using a hot tub. We're not even "out" people and we spend most of our time in Charleston "out". If you are in N Charleston upstream of the gentrifying areas where there is more crime and less people are going to be walking anywhere, it might be marginally helpful.

Simplest thing to do is go on VRBO/AirBnb and look at other properties in your area and see if they have a hot tub. I'm guessing the vast majority will not.

Jon Martin · Answer

Agreed with all of the above. I will add that oftentimes the fixed costs with installing any kind of pool (fence, pump, permits, excavation etc) are so high that the marginal cost of a plunge pool vs something more standard is relatively small. Therefore, if you are already spending $30K all in for something not much bigger than a hot tub, why not spend another $10-20K for something that a family or group can enjoy and actually play in together?

The above are made up numbers that will vary based on your market and local regulations but you get the idea.

Sarah Kensinger · Answer

This all depends on the area and what the popular amenities are, and of course your ROI. Some places you have to have a hot tub or pool, others it just doesn't matter much. Do some investigating on the OTA and see what other STR offer. If they have a hot tub or pool, it might be something to consider.

Short-term Rentals: Are Small Dipping Pools / Hot Tubs worth the investment?

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