Swimming Pool Rental Premium

[Gabe H Coud]

firstly please note i have not put this in the Swimming Pool forum as i think thats about pools and how they work or get maintained etc

 

this is about the value of a pool

 

So in certain villages(developments) there are identical houses

 

but some have a pool and some have just more garden

 

what would typically be the % uplift for the swimmimg pool....in rental terms ?

 

20, 30, 40% more per month???

 

thoughts or experiences appreciated 

 

thanks

 

 

[Peterw42]

It would depend on who is maintaining the pool, the landlord or the tenant. A pool being maintained by a tenant can be a nightmare, they wont look after it properly and buy chemicals etc. No tenant is going to pay a premium for a pool that then costs them time and money to maintain. Alternatively, if the landlord pays a pool guy etc, then that eats into rental return. The extra rent you may get is offset by the extra costs.

 

[Gabe H Coud]

2 minutes ago, Peterw42 said:

It would depend on who is maintaining the pool, the landlord or the tenant. A pool being maintained by a tenant can be a nightmare, they wont look after it properly and buy chemicals etc. No tenant is going to pay a premium for a pool that then costs them time and money to maintain. Alternatively, if the landlord pays a pool guy etc, then that eats into rental return. The extra rent you may get is offset by the extra costs.

 

sorry meant to make that clear

 

*Owner maintains*

 

what you think now?

 

im more looking at how much more a tenant does actually pay for an identical 3 bed villa in an average village for one with a pool( as opposed to one without)

 

lets assume the rental values obtained are in the order of 20- 40,000 baht per month depending on length of contract and High/low season

 

Also lets ignore covid for now, just focus on the monthly rental premium for an owner maintained pool 

 

thanks

 

 

 

 

thanks

 

 

[Gabe H Coud]

ps sorry to be super specific 

 

also assume its a 1 or 2 year lease

 

ie not a 1 month holiday let as becasue its only a month i think the tenant wouldnt care too much about the price they would just want to have a good holiday 

[Peterw42]

The whole landscape has changed, whatever the rent with/without a pool was, is probably a moot point nowadays. 

Someone may be able to advise what the premium for a serviced pool was (if any) but it may be a while before there is any demand for long term expat rentals.

 

 

[Gabe H Coud]

2 hours ago, Peterw42 said:

The whole landscape has changed, whatever the rent with/without a pool was, is probably a moot point nowadays. 

Someone may be able to advise what the premium for a serviced pool was (if any) but it may be a while before there is any demand for long term expat rentals.

 

 

agree re landscape change, and yes perhaps it is a moot point now

 

however .....for my purposes id like to prove that the 'valuation' of my rental offer has some historic credibility 

 

thanks

 

[Gabe H Coud]

would really appreciate hearing from anyone on this, thanks 

[Pilotman]

In this market, at this time, there is no premium for a pool. Negotiate hard and you can get a really good deal. Find a place that you like, for the rent you are prepared to pay, ignore the asking price and make an offer on the monthly rental and stick to it.  There is a lot of choice out there, so you will find something in the range that you want to pay that meets your requirement. 

[Gabe H Coud]

1 minute ago, Pilotman said:

In this market, at this time, there is no premium for a pool. Negotiate hard and you can get a really good deal. 

thanks

 

as indicated above i absolutely know this is a different market etc etc

 

again i was looking to determine the historic premium uplift for a pool, pre covid 

 

thanks again

 

[Pilotman]

5 minutes ago, Gabe H Coud said:

thanks

 

as indicated above i absolutely know this is a different market etc etc

 

again i was looking to determine the historic premium uplift for a pool, pre covid 

 

thanks again

 

I can understand you wanting to know that for interest, but as the market has changed here drastically, it's rather irrelevant. 

[Gabe H Coud]

1 hour ago, Pilotman said:

I can understand you wanting to know that for interest, but as the market has changed here drastically, it's rather irrelevant. 

whilst the 'no premium for pool' argument suits my case perfectly, as someone who worked in property valuation for 30 years i find it difficult to accept that any given renter would pay no more for a house with a pool than for the identical house without one

 

But like i say....suits me!

 

thanks

 

 

 

[Pilotman]

33 minutes ago, Gabe H Coud said:

whilst the 'no premium for pool' argument suits my case perfectly, as someone who worked in property valuation for 30 years i find it difficult to accept that any given renter would pay no more for a house with a pool than for the identical house without one

 

But like i say....suits me!

 

thanks

 

 

 

If you approach it with that mind set, then it won't work out for you, but that is up to you.  I can only say what I would do in your position. Believe me, your 30 years are worth very little here and in this market, which is unprecedented. You must know that I guess, or you would never have posted.   Good luck. 

[BritManToo]

My local pool costs 40bht and is much bigger than a home pool and 100m from my house.

If I used it 3x a week that would be 120bht,

 

It'd be worth say 500bht/month.

I don't have to clean it either.

[bwpage3]

43 minutes ago, Gabe H Coud said:

whilst the 'no premium for pool' argument suits my case perfectly, as someone who worked in property valuation for 30 years i find it difficult to accept that any given renter would pay no more for a house with a pool than for the identical house without one

 

But like i say....suits me!

 

thanks

 

 

 

First of all the renter has to want a pool?

 

Pool pump running runs up their electric bill.

 

What's the water temp in the pool in the hottest month of the year?

 

Is the pool big enough to swim laps or just cool off?

 

So is there really an uptick?

 

Seems you are grasping competing with your neighbors for rent.

 

I think the question you should be asking the forum members, is how much extra they would be willing to pay for a pool?

 

Might find out the answer is zero?

 

 

 

 

[Gabe H Coud]

2 minutes ago, bwpage3 said:

First of all the renter has to want a pool?

 

Pool pump running runs up their electric bill.

 

What's the water temp in the pool in the hottest month of the year?

 

Is the pool big enough to swim laps or just cool off?

 

So is there really an uptick?

 

Seems you are grasping competing with your neighbors for rent.

 

I think the question you should be asking the forum members, is how much extra they would be willing to pay for a pool?

 

Might find out the answer is zero?

 

 

 

 

i believe thats precisely what i am asking!

very good point about the pool size though

So.....as referred to above if you had a modern 3 bed detached villa in a nice neighbour hood , half of them had pools the other half didnt, how much more would you pay for one with a MAINTAINED pool thats 8m x 4 m, that is a pool that great for kids but not really great for adults as they cant do 'proper' swimming in that(IMO)

assume a rental in the order of 25000 baht a month

 

I accept the point made earlier that this is all academic

 

thanks

 

 

[BritManToo]

2 minutes ago, Gabe H Coud said:

i believe thats precisely what i am asking!

very good point about the pool size though

So.....as referred to above if you had a modern 3 bed detached villa in a nice neighbour hood , half of them had pools the other half didnt, how much more would you pay for one with a MAINTAINED pool thats 8m x 4 m, that is a pool that great for kids but not really great for adults as they cant do 'proper' swimming in that(IMO)

assume a rental in the order of 25000 baht a month

 

I accept the point made earlier that this is all academic

thanks

Like I said, I'd pay 500bht/month extra.

[sungod]

29 minutes ago, Gabe H Coud said:

i believe thats precisely what i am asking!

very good point about the pool size though

So.....as referred to above if you had a modern 3 bed detached villa in a nice neighbour hood , half of them had pools the other half didnt, how much more would you pay for one with a MAINTAINED pool thats 8m x 4 m, that is a pool that great for kids but not really great for adults as they cant do 'proper' swimming in that(IMO)

assume a rental in the order of 25000 baht a month

 

I accept the point made earlier that this is all academic

 

thanks

 

 

Not sure if this is the answer you want, but my thinking would be the pool makes your property more 'rentable' over those who dont have one. So I would say the uplift is zero, I would rent your house with a pool over the others without.

[Airalee]

4 hours ago, BritManToo said:

My local pool costs 40bht and is much bigger than a home pool and 100m from my house.

If I used it 3x a week that would be 120bht,

 

It'd be worth say 500bht/month.

I don't have to clean it either.

I’m with Britman on this.  If it was in Chiangmai, I’d pay the ฿1000 membership fee for the 700 year sports complex which would then allow me use of the gym, Olympic sized pool for ฿30 per use (also the diving pool), and beautiful tennis courts for ฿50/hour.  To have a pool at home I’d perhaps pay an additional ฿500 to 1000 but no more than that. 

[papa al]

7 hours ago, Gabe H Coud said:

would really appreciate hearing from anyone on this, thanks 

7.86%-13.87% +/- 42%, approx.

[bwpage3]

5 hours ago, Gabe H Coud said:

i believe thats precisely what i am asking!

very good point about the pool size though

So.....as referred to above if you had a modern 3 bed detached villa in a nice neighbour hood , half of them had pools the other half didnt, how much more would you pay for one with a MAINTAINED pool thats 8m x 4 m, that is a pool that great for kids but not really great for adults as they cant do 'proper' swimming in that(IMO)

assume a rental in the order of 25000 baht a month

 

I accept the point made earlier that this is all academic

 

thanks

 

 

Cannot be used by adults for laps/exercise, therefore no interest.

 

How many families paying 25,000 a month rent have kids?

 

The electric bill increases by running the pool pump, so besides the high rent is more cost.

 

Question? You keep comparing to houses with no pool? Why are there so many houses for rent there?

 

If there are a lot of houses for rent, it MAY help you get a tenant ahead of others houses without a pool 50/50 chance

 

Some people do not want a pool and the increased electric bill.

 

Price your rent where you want. If you see other houses renting and not yours, I guess you figured out the rent is too high.

 

Is the pool out in the open or enclosed in a screened-in enclosure?

 

People may not want to deal with mosquitoes in the evening so they would stay in the house and not use the pool?

 

 

[richard_smith237]

I get exactly what the Op is asking. 

All other things being equal, how much more would someone be prepared to pay for a house with a serviced pool vs one without. 

A 3BR house in a nice area etc..   THB25,000 per month rent.

I’d be happy to pay an additional 4-5000 baht for the house with the pool. 

[bwpage3]

7 hours ago, richard_smith237 said:

I get exactly what the Op is asking. 

All other things being equal, how much more would someone be prepared to pay for a house with a serviced pool vs one without. 

A 3BR house in a nice area etc..   THB25,000 per month rent.

I’d be happy to pay an additional 4-5000 baht for the house with the pool. 

add in a couple more thousand for the electric bill

 

[Pilotman]

15 minutes ago, bwpage3 said:

add in a couple more thousand for the electric bill

 

mine costs approx 800 baht per month for electricity, for a 10m x 5m pool. 

[bwpage3]

15 minutes ago, Pilotman said:

mine costs approx 800 baht per month for electricity, for a 10m x 5m pool. 

Is your bill broken out separate for the pump?

[Pilotman]

5 minutes ago, bwpage3 said:

Is your bill broken out separate for the pump?

No, I just compare the bills before it was built, to those after it was built.  

 

Edit: to add context; the house was built 5 years ago and we had the pool completed 2.5 years ago

[Gabe H Coud]

On 7/22/2020 at 4:30 PM, Peterw42 said:

The whole landscape has changed, whatever the rent with/without a pool was, is probably a moot point nowadays. 

Someone may be able to advise what the premium for a serviced pool was (if any) but it may be a while before there is any demand for long term expat rentals.

 

 

im with you all the way re different market now

 

but in all seriousness do you have any actual 'evidence' of rentals dropping? Have you or friends renewed leases on houses/condos at say 20% less than before? Or can you refer me to any articles re (for example) Bkk/Chiang Mai rents dropped 19% in the last quarter.

 

Anything like that would be really useful for my purposes. 

 

The main population centres are of most interest to me( as you say long term expat rentals)

 

thanks all

[Susco]

A decent built pool quickly adds 1 million to the building cost.

 

So if the house cost 5 million to build, than the pool would warrant a fifth of the rental price.

[Gabe H Coud]

8 minutes ago, Susco said:

A decent built pool quickly adds 1 million to the building cost.

 

So if the house cost 5 million to build, than the pool would warrant a fifth of the rental price.

whilst accepting that a pool can be 20% of total build cost i would argue that that in itself doesnt mean you will automatically get 20% premium on the rent

 

build costs do not not always return rent 

 

 

 

[Susco]

On 7/31/2020 at 7:18 PM, bwpage3 said:

I think the question you should be asking the forum members, is how much extra they would be willing to pay for a pool?

 

Might find out the answer is zero?

 

But the main reason for that answer is because most critics members on this forum think the world owes them.

[Peterw42]

58 minutes ago, Gabe H Coud said:

im with you all the way re different market now

 

but in all seriousness do you have any actual 'evidence' of rentals dropping? Have you or friends renewed leases on houses/condos at say 20% less than before? Or can you refer me to any articles re (for example) Bkk/Chiang Mai rents dropped 19% in the last quarter.

 

Anything like that would be really useful for my purposes. 

 

The main population centres are of most interest to me( as you say long term expat rentals)

 

thanks all

I am in Pattaya, and in the local facebook property groups now seeing places that were advertised for 8k, now 6k a month. 8k was always the lower end in my condo block, now seeing adds for 6 k.