Having a hot tub at your rental property can be a great way to attract…
Owning rental property provides you with a steady stream of income while your investment grows in value. While it would be easy to simply do the minimum maintenance or stick with basic improvements, we're sharing 4 reasons to install a hot tub on your rental property and boost your short and long-term profits.
Write Off Your Hot Tub on Your Taxes
Adding improvements to your rental property can be used as a tax deduction. However, you can't deduct the cost of the hot tub all at once. See, the IRS looks at rental property deductions in one of two ways:
- Repairs: one-time fixes that keep the property in its current condition and don't add much, if any value. This would include things like repairing a pipe, patching a roof, or installing a new sink
- Improvements: any update or upgrade that adds value to the property is a capital expense. This means the deduction must be capitalized and depreciated over multiple years, claiming a small amount of the improvement expenses in the current year and subsequent years. This includes kitchen renovations, adding a bathroom, or installing a hot tub
Keeping good records and creating a depreciation schedule will ensure your hot tub investment will continue to provide tax savings for years to come.
Increase Your Monthly Rent
By installing a hot tub, you can charge more in rent because you'll have a sought-after amenity. While there isn't a hard rule about how much you could increase rent, consider competing properties and how much more desirable adding a hot tub makes your property. If you have a single-family home, a hot tub adds significantly more appeal, whereas if you have a multi-family dwelling, the rent increase per unit would be divided by the units.
Stand Out from Competitors and Get Better Tenants
In addition to increasing your rent, you can also appeal to better-quality tenants who can afford a more luxurious property. This helps to keep tenants in your property longer because there will be less desire to move. Having luxurious amenities like a hot tub will also increase your turnover so there will be less time in between tenants.
Increase Your Property Value
In addition to short-term gains such as tax deductions and rent increases, installing a hot tub is also good for your long-term profitability by adding to your property's value. This is especially true if you create a backyard oasis with attractive landscaping, lighting, and install a deck area to create an exterior living space around the hot tub.
Be Sure to Maintain Your Rental Property Hot Tub
If you do decide to purchase a hot tub for your rental property, it is essential that you maintain it properly. A dirty, smelly hot tub will leave your guests dissatisfied and running for the exit. Rental property hot tub cleaning varies slightly from how you would maintain a purely residential family hot tub. You may need to adjust your dosages for sanitizers or test and treat more frequently. Talking to your local hot tub dealer can help you better grasp your water maintenance routine.
Find the Best Tub for Your Rental Property
Picking the right hot tub for your rental property is different than picking a hot tub solely for your family. You may consider picking an oversized hot tub so you can fit all of your guests comfortably. Specialty features should also be considered and you might look into party hot tubs with features like speakers, lights and ice coolers.
Purchase a Hot Tub in Raleigh Today
If you're ready to install a hot tub on your vacation or rental property, Epic Hot Tubs can help. Our Everest Spas include a free cover as well as free delivery and are ready for installation. To learn more, schedule a free consultation at 919-444-8500 or fill out the form below to get started.