Selling versus Renting w/ pool

[lucigo]

I need budget advice! We have a house in Florida with an above ground pool with a deck that goes up to it. We probably have $5-6K invested in it.

My husband just started a job in Virginia. I've been looking into selling our house (first realtor said we would need to bring 4K to closing) versus renting (we can break even). The problem is the pool. Realtor says beware of liability, and homeowner's insurance says take it down. I'm getting a 2nd opinion on selling, but I hate the idea of getting rid of the pool and having a silly looking deck to nowhere, and losing the cost of the pool.

Budget board opinions?

 

[chris31997]

We bought a house with a deck and an above ground pool. I would have it certified as grounded and good to use(proffessional installed), if you are selling it. If you were renting it, I would have in the contract, they use at their own risk and could install guard fences if wanted to.

 

[Jenny3]

If you decide to rent out the house, I would remove the pool. Too much liability, especially that you would be a few states away. God forbid the tenants aren't cautious and someone gets hurt (or worse). Or they are not responsible and poke a hole or something in it and flood your home.

The only exception I think would be if your tenant had a very good renters insurance policy, with a minimum amount of liability coverage. You should check this out with your homeowner's insurance company first, to see what amount is required and if it would cover the pool. If they say no, then I would just sell the home and take the loss. Or remove the pool.

 

[lastminutemom]

If you decide to rent out the house, I would remove the pool. Too much liability, especially that you would be a few states away. God forbid the tenants aren't cautious and someone gets hurt (or worse). Or they are not responsible and poke a hole or something in it and flood your home.

The only exception I think would be if your tenant had a very good renters insurance policy, with a minimum amount of liability coverage. You should check this out with your homeowner's insurance company first, to see what amount is required and if it would cover the pool. If they say no, then I would just sell the home and take the loss. Or remove the pool.

I agree with this -- the liability issues surrounding the pool are not small.

What is your realistic sense of the real estate market where you are and how long are you really willing to be a landlord? There are many experts who believe that in many markets, rock bottom has been hit in terms of real estate values, but they don't believe that prices will rise anytime soon. Being an accidental landlord is no fun -- and you will be hundreds of miles away.

You may be better off cutting your loses now, as renting out the home may devalue it further as tenants almost never take the same level of care as a home owner would.

 

[nilseks]

If you think your realtor is being realistic with only bringing $4K to closing, I would sell. I have several friends who are renting out homes right now that are underwater, and it can be a nightmare. One friend's tenants didn't pay rent for the last 6 months of the lease, it is a long process to evict someone, and when the tenants finally left they had caused TONS of damage to the house and painted over a $2,500 solid wood entry door.

If you would only have to bring $4K to closing, you're darn lucky--there are people near me who are bringing $20, 30, 40K checks to their closings, just to get rid of a house that's underwater.

Good luck!

 

[Allison]

I would sell and be done with it.

I would not rent it with the pool.

 

[lucigo]

Thanks everyone. I am talking to a different realtor to see if there is any way we can at least list it at a break even price. I need to decide now, as if we decide to rent we will refinance, but if we sell we won't. Hopefully a 2nd opinion will bring better news.

 

[Kay1]

We have an inground pool and have always wondered about what would happen if we ever bought and lived in a place we planned to retire, while renting out this house. We sure couldn't rip out the pool so we'd have to risk it, but then so many people in Orlando rent out their pool homes so it can't be that big an issue, right?

I guess we'd just have to have a frank discussion with our insurance company.

 

[Mom2Ben02]

I guess my question would be - what if it were an in-ground pool? Would you be expected to fill it in? I would just ask if tearing it down is the "easy way out" - maybe you could purchase additional insurance, or specify in your lease that the pool is not part of the contract, and drain it. I am quite sure you are not the first to go through this, especially in Florida!

 

[lucigo]

I talked to another insurance company today. He said he will look further into it for me. He also said I should take it down if at all possible. My husband suggested we should take it down and bring it with us, even though we will be renting for at least a year so won't be able to put it back up. I just don't think it would make it through the move. What a mess!

I also talked to a realtor today about selling, she is going to put some numbers together and let me know what she thinks.