Pool for Scottsdale STR

[Seth Razor]

Hello all! I am a beginning investor and am focused in the Short Term Rental (STR) market in Scottsdale AZ. I have a question regarding whether to install a pool during my rehab, more specifically the following questions:

1. On average, how much does a pool increase the home value during a cash out refinance in my market, area code 85257?

2. How much can I expect my nightly rental rates to increase? Pool will be heated.

3. How much for a quality pool install in my market? Approx 15 ft x 20 ft x 5 ft.

Background: The house is paid for with cash, the interior is being completely remodeled as well. Interior is 2600 sq ft and yard is smallish but will have exterior fireplace and bbq pit as well with or without the pool.

Thank you in advance for the help!

[Ryan Swan]

I've been told that pool prices are high right now because the install companies are all very busy and thus have more leverage to charge higher prices. Minimum all in costs is probably in the $30-$40k range right now. 

You definitely need a pool to be a competitive STR in Scottsdale. Having a heated pool allows you to charge a slightly higher AvgNR, and also lowers your vacancy rate slightly relative to other properties. You'll get more bookings in the shoulder months when the pool might otherwise be too chilly to enjoy.

An appraiser probably won't give you as much for the pool as you would want. Maybe 50% of the total project cost?