When diving into property investment waters, one must navigate the delicate balance between minimal investment and maximum returns. The goal is simple: ensure that your property investment yields outweigh both the initial and ongoing costs combined and that your decision is sustainable in the long term.

Is Pool Ownership in an investment property a Splash or a Sink?

While the initial cost of installing a pool may seem like a one-time investment, the ongoing maintenance expenses can quickly add up. From manual cleaning to the higher costs associated with modern self-cleaning pools, the financial burden of pool upkeep can be substantial. Any property report for a pool-equipped house will likely allocate a significant portion of expenses to pool maintenance.

In Queensland, our long hot summers make pool ownership almost a necessity. It’s often how we entertain and unwind during the warmer months, and it keeps our air conditioning running cost lower if we have an alternate way to cool ourselves down. The allure of lounging by the poolside on a lazy afternoon or enjoying a refreshing dip is undeniable for Queenslanders. Undoubtedly, the significant value a pool adds to a property is undeniable, both for the owner and potential tenants. However, it’s crucial to consider the hidden costs lurking beneath the surface.

The Price of Pool Ownership

While the initial cost of installing a pool may seem like a one-time investment, the ongoing maintenance expenses can quickly add up. From manual cleaning to the higher costs associated with modern self-cleaning pools, the financial burden of pool upkeep can be substantial. Any property report for a pool-equipped house will likely allocate a significant portion of expenses to pool maintenance.

Navigating Australian Tax Depreciation Rules Before dismissing the idea of a pool, it’s essential to factor in Australian tax depreciation regulations. These rules allow for the depreciation of various elements related to pool construction and maintenance, providing opportunities for tax deductions.

Here’s how it works: When constructing a property, expenses can be divided into capital works and plant and equipment. Capital works encompass permanent structures like walls and flooring, while plant and equipment include removable fixtures such as appliances. By compiling a comprehensive list of depreciable assets, including pool-related costs, investors can maximize tax deductions with the assistance of certified agencies like Deppro and investment property calculators.

The Tenant’s Role in Pool Care

The RTA outlines a client’s responsibilities regarding renting a private property (i.e.: body corporate free) with a swimming pool.  They state:

“The maintenance of a pool should be covered in the special terms of the tenancy agreement. The property manager/owner cannot enforce a specific business for cleaning the pool.

Generally, the tenant is responsible for everyday maintenance such as clearing leaves from the pool and may be responsible for regular maintenance. This should be discussed before signing a tenancy agreement.

Ideally, the property manager/owner should provide instructions for any maintenance the tenant must carry out.”

Residential Tenancies Authority Queensland

This can be a fantastic arrangement if the tenant is responsible and understands the requirements in maintaining a swimming pool. But if a tenant is neglectful or does not possess the required knowledge to take care of the important elements in swimming pool care (such as PH monitoring, and chemical and salt top-ups), costly damage and rectification measures need to be attended to the swimming pool to make it functional again. If you do decide to outsource the pool maintenance, you cannot force the tenant to pay for a specific company.  However, it can be negotiated with the tenant.  A good property manager can help facilitate this for you.

Tenants also have a responsibility to notify the property owner if they intend on installing a temporary swimming pool.  All temporary swimming pools and all spas must also be in compliance with Queensland Pool safety laws.  Any pool that has the capacity to be filled with water that has a minimum of 300mm in depth requires and approved pool fence and certification. To find out more information from official sources, checkout Department of Housing, Local Government and Planning and Public Works.

The Take Home

Ultimately, the decision to invest in a property with a pool hinges on several factors: location, upfront costs, ongoing costs and potential tax benefits. By carefully evaluating these variables, investors can make informed choices that align with their financial goals and objectives. To find out how we can help you with your investment property management needs, contact us and talk to one of our friendly staff at Homes4Rent.