Do you know what is going to be this summer’s hottest and most popular moneymaker in America? That is renting out the swimming pool and backyard. If you have any of these, you have a great opportunity to make some handsome income in 2022. In this article, we will be highlighting the significance of this trend in the light of the real stories of some homeowners who adopted the pool and backyard rental business model and earned a great deal of money.
The Story of Alice Goldsmith
As Alice’s kids grew older, her backyard pool in Aurora, Colorado rose as one of the most afterthought spots for family fun. The bills to keep the whole system running, however, were still coming. Alice told us that once a pool is turned on, it must stay on, continually circulating, heating, and always checking the chemicals. On average, the pool maintenance costs are between $3,000 and $5,000 per year.
So, when Alice heard about a pool rental app that connects the pool owners with people wanting to rent pools, she opted to become a host to offset her pool maintenance costs. Things worked very well. In 2020, she rented her pool out 200 times and made around 25,000. This year she expects to earn more by a minimum of at least 500 reservations.
Alice affirmed that only she got some additional money to cover the cost of maintaining the pool, but it also actually brought her a completely new revenue stream for her family.
The Exponential Growth of Pool Rentals during the Pandemic
Pool rentals is one of the growing businesses taking advantage of the sharing economy, following the business models of Uber and Resortifi. Many pool rental apps started as a trial version with the idea of determining the best means to streamline the process for both pool hosts and the renters.
The homeowners using such apps to rent their pools and backyards have reported a huge stream of revenues before the pandemic hits. Even during the pandemic, the stream of income has been considered for most of the owners, indicating that pool rentals are here to stay.
After the pandemic, people were looking for ways to safely go back to their fitness and recreational routines while maintaining pandemic-driven social distancing. Since then, the pool rentals are increasing in number; many pool rental apps show a similar trend.
For pool owners such as Alice, these pool rental apps provide not just a way to offset their pool costs but also a source of additional income for the individuals who lost their jobs or were deprived of their incomes because of the COVID-19.
This kind of business was needed as people were unable to go to the pools and gyms. These apps help both sides.
The Big Picture
An idea that began as a way to give people who do not possess a pool a safe spot to swim soon turned into something else. It was found that pools and backyards could be used for more than just exercise. Some homeowners rented their pool out for activities as diverse as birthday parties and baptisms to aqua therapy sessions and even underwater drone trials.
Over the past year, many apps have been reported to facilitate more than 200,000 bookings and currently have over 20,000 pools listed on the sites. Listings are available all across the states in the US, Puerto Rico, Australia, and Canada.
Even some of the pool rental apps have gone even beyond this scope; they have expanded their offering with a new service that matches the renters up with owners of various kinds of amenities like tennis and basketball courts, home theaters and gyms, kitchens (for photoshoots and educational videos) and even home recording studios.
Rental Pricing
These pool rental apps vet the owners and the pools and list them with their full description and cost, and the actual homeowner becomes a host. Anyone can go online via the website or app, see the pool and any extra amenities offered, and easily make a reservation.
Pools can be rented per hour, with an average rate of $45 per hour. Bigger pools and pool areas may also include hot tubs, spas, outdoor grills, or television/music and can be rented at as high as $200 per hour. Some owners might charge an additional premium for big groups.
On average, the pool and the backyard owners earn between $10,000 to $20,000 per year, according to some of the key pool rental apps’ owners. However, some hosts are making much more. On the high end, one of the pool hosts in Portland, Oregon, has earned more than $130,000 since September last year.
Are you ready to rent your pool or backyard?
If yes, here is some information to know and follow.
While the idea of being able to make income off your home without selling it is fascinating as heck, you want to ensure you are ready to open your home to complete strangers. You are no longer only a pool owner; you are actually running a business.
However, you do not have to establish a commercial entity. You can work as a sole proprietor or as a business like a partnership or limited liability company. Pool rental apps provide you with a 1099 form for tax purposes if you surpass a certain level of income or number of reservations.
1. Get Insurance
One of the very first things you should think of is insurance. You naturally wish to protect your property from any kind of damage from potentially disruptive guests, but now you also have to consider your liability for their security.
What happens if the renter has an accident while using your pool or backyard? Your usual homeowner’s insurance might not cover your liability in this event or might not offer sufficient coverage. In 2019, it was up to the individual hosts to get liability insurance to protect themselves.
Starting 2020, however, there are pool rental apps that have collaborated with some big insurance companies to provide such insurance to the hosts. This program usually offers liability insurance up to $1 million for its hosts (it also offers up to $10,000 in separate property damage insurance). The insurance policies are delivered free of cost to the host by some apps.
2. Know the activities
You should determine the activities you are comfortable with. As some of the app users point out, they are renting out a pool that they will probably be using themselves at some point. Think about the kinds of activities you are willing to host. You might feel more comfortable renting to lesser family groups or persons instead of larger groups. You can make the parameters of how many people and what kind of activity you will include in your pool rental pool package.
Also think of how frequently you want to rent the pool, whether it be all days a week or only on the weekends. Are you renting the pool at night or is it also open during the day?
You should also consider how renting out your pool can affect your neighbors, especially if you are hosting big groups that may lead to traffic congestion on the residential streets.
3. The Amenities
Perhaps you have a backyard grill or a hot tub close to your pool. Will you have these in the rental? Will you offer towels, a sound system, a TV or some other kind of entertainment? How about access to the bathrooms?
Be clear about what is and is not incorporated in the rental and what might be included at an additional cost. Consider all that information when you set your pool rental price.
4. Rules & expectations
Keep in mind that this is your home after all. Some hosts try to greet their guests in person and show them the area rented and where all the facilities are located. This is also a good time to discuss the rules and expectations to avoid misunderstandings. This sets a tone for both their fun and the level of respect necessary to treat the pool and property.
5. Keep Promises
Like with a home listing, what is going to sell your pool or backyard are the photographs you post. Quality photos of your pool and surrounding areas go a long way towards attracting more renters to your listing (such as pool, backyard, resort, guest room, garden etc). This means you must keep the area clean and well maintained.
When your guest arrives, they are expecting to get exactly what they saw in the photographs. Ensure that the area is clean, the equipment is in place and that any extra services offered, like sound systems, are in good working condition.
Final Thoughts
Starting a swimming pool or backyard rental business necessitates a great deal of effort, dedication, and most significantly passion. You must be having full knowledge about the state rules about the guests' safety using your space. Most importantly, you should be able to precisely make your plan that accommodates all elements that can affect your business.
One of the best parts of beginning a swimming pool rental business is that you get an opportunity to build a local following by selling your pool or backyard at the shows, nearby markets, or even local storefront businesses. This gives you access to additional revenue streams and loyal customers. We are expecting high demand from hosts wanting to list hot tubs and tennis courts, for example, on the rental apps since this can turn into a marketplace for shared outdoor resources and that’s an enormous market opportunity that adds value on both sides.