The Positive ROI of Adding a Hot Tub to Your Airbnb Listing
Are you considering adding a hot tub to your Airbnb rental? This luxury amenity can instantly attract more guests and increase your monthly rental income. But before taking the plunge, there are a few things to consider, namely the upfront cost and ongoing maintenance. We’re going to break down the potential financial return on investment (ROI) and potential operational headaches that you’ll face and analyze the overall pros and cons of adding a hot tub to your Airbnb.
Financial Impacts of Installing a Hot Tub in Your Airbnb
Hot tubs are a significant financial investment for homeowners. But if you regularly rent out your home to guests, your rental income can quickly help pay off the purchase. Let’s take a look at the initial investment and maintenance costs of adding a hot tub to your Airbnb and the potential return on investment (ROI) you can expect.
Initial Investment
The price of a hot tub can vary greatly depending on factors such as size, features, and brand. On average, hot tubs can range from $3,000 on the lower end to $35,000 for luxury home spas.
While this initial investment may seem steep, it's important to remember that your guests will be paying for it with higher nightly rates. With a premium amenity on your rental property, you can increase your nightly rates by 15-25%. Suppose you live in a competitive rental market in major metropolitan areas or near ski resorts. In that case, the presence of a home spa will instantly increase your booking rate, making your property an even hotter commodity. Not to mention, your guests will likely leave higher ratings & detailed reviews, leading you to even more business over time.
If you operate your Airbnb as a small business, the initial expense can also be written off on your taxes.
Maintenance Expenses
After the initial installation, you’ll still need to factor in regular maintenance expenses. Water treatment, cleaning, and repairs will be monthly, quarterly, and yearly costs that keep the hot tub in optimal condition for your guests.
Maintenance costs will vary depending on factors like the hot tub size, frequency of use, and local water quality. On average, you can spend around $500 to $1,000 annually on maintenance expenses. The financial cost of maintenance is relatively insignificant compared to the initial investment and can usually be offset with just a few bookings, depending on your nightly rate. The maintenance logistics are a bit trickier to handle, which we’ll cover later.
5 Reasons to Add a Hot Tub to Your Airbnb
Adding a hot tub to your Airbnb property can generate more revenue and turn your rental into the #1 booking in the area. Let's explore some of the top reasons why Airbnb owners have installed hot tubs at their properties:
1. More Nightly & Long-Term Bookings
One of the primary benefits of having a hot tub is its potential to attract more bookings. Many travelers specifically search for accommodations with a hot tub, as it adds an element of luxury and relaxation to their stay. Plus, they'll happily pay extra for the built-in hydrotherapy if they’re physically straining themselves during the day with activities like skiing, hiking, surfing, or another adventure activity. Assuming you already have a high satisfaction rate among previous guests, adding a hot tub will instantly increase your booking rate & monthly rental income.
2. Increased Guest Satisfaction & Return Rate
Everyone loves hot tubs. They’re a unique and enjoyable way for guests to indulge during their stay. Relaxing in a hot tub can help them unwind and de-stress, creating a memorable and pleasurable experience. Social bookings like bachelor or bachelorette parties, or even girls’ or guys’ weekends, will serve as a centerpiece for their social interactions.
Guests with a positive experience are likelier to leave positive reviews and recommend your property to others. This will increase return rates and word-of-mouth referrals, boosting occupancy and rental income.
3. Competitive Edge Over Nearby Properties
Prospective guests tend to look through dozens of other properties in the area. If your property has higher average reviews, competitive costs, and a hot tub, it will be nearly impossible for them to book with a competitor. Adding a hot tub can give your Airbnb property a competitive edge over nearby rentals that don’t offer this amenity. Travelers love seeking properties with unique features and showing off those features with photos & videos on their social media.
By providing a hot tub, you can attract guests willing to pay a premium for its added luxury and relaxation. This will give you a competitive advantage and increase your property's demand.
4. Immediately Increase Property Value
In addition to the increased rental income, adding a hot tub can also boost your property's value. A well-maintained and functional hot tub is an asset and can be a selling point if you decide to sell your Airbnb property in the future. Prospective buyers will be willing to pay more for a property with a hot tub installed, saving them the hassle and expense of adding one themselves. And because you’ve been able to monetize the hot tub through your rental, you can factor that income into the selling price and the value of the hot tub itself.
5. Cost Effective Over the Long-Term
With proper care and maintenance, a high-quality hot tub lasts for 10+ years, providing enjoyment and attracting guests for years. Compared to other potential property upgrades or renovations, a hot tub can offer a solid return on investment. It can continue to generate income and add value to your property for years.
Considerations of Adding a Hot Tub to Your Airbnb
Before adding a hot tub to your Airbnb property, it's crucial to carefully consider several factors that can impact your experience as a host. Let's explore these essential considerations:
Upfront Costs
The initial investment required to install a hot tub can be significant, depending on the model you choose and any installation or minor construction costs that may be required. If your Airbnb consistently generates thousands of dollars each month, it shouldn’t be much of a strain on your finances to add a hot tub. But in any case, creating a budget is essential, as well as determining if you can comfortably afford the upfront costs. Consider factors such as the hot tub's size, features, and quality, as these will affect the price.
Additionally, it would be best to account for any necessary modifications to your property, such as electrical work or deck reinforcement, to accommodate the hot tub. These additional expenses should be factored into your decision-making process.
Ongoing Maintenance
While a hot tub can be a desirable amenity, it also requires regular maintenance to keep it clean, safe, and functioning correctly. You'll need to allocate time and resources to perform routine maintenance tasks, such as monitoring water chemistry, cleaning the filters, and ensuring proper sanitization.
If you need to be more comfortable or knowledgeable about hot tub maintenance, you may need to hire a professional to handle these tasks. This will incur additional costs that should be considered in your financial calculations. These monthly, quarterly, and annual schedules also need to be considered for bookings, as you may have to block off days or delay check-in times to perform them. This may seem inconvenient, but a short delay is a better trade-off than a hot tub that doesn’t work.
Insurance & Guest Emergencies
Installing a hot tub on your Airbnb property may impact your insurance coverage, depending on where you live. Contact your insurance provider to ensure your policy covers a hot tub adequately. They may require specific safety measures or additional coverage to protect against accidents or injuries related to the hot tub.
While hot tubs are meant to be a source of relaxation and enjoyment, accidents can happen. To minimize the risk of accidents or injuries, you'll need to establish clear guidelines and safety protocols for guests using the hot tub. This may include providing safety instructions, signage, and emergency contact information, especially for guests who have children or pets (if allowed).
The benefits are clear if you’re considering adding a hot tub to your Airbnb or rental property. You can increase your prices, collect more positive customer reviews, and scale your monthly rental income in weeks. And though the initial financial impact is significant, it can quickly pay for itself with premium booking rates. But just as with any additional amenity, there are other things to consider, like regular maintenance, insurance policies, and potential safety issues. Your choice to install a home spa at your Airbnb will come down to weighing the financial ROI against a few minor headaches.