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4 Reasons to Install a Hot Tub on Your Rental Property

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: 

  1. 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 
  2. 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 that is almost impossible to find in rental properties, both single-family homes, and large apartment complexes. 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 not only keeps 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 when one tenant moves out and another tenant moves in. 

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.

Purchase a Hot Tub in Raleigh Today

If you’re ready to install a hot tub on your vacation or rental property, Custom Backyard Spaces 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.