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Florida Airbnb Pool Decision

The Florida Panhandle can be found in the northern corner of Florida. It is one the most sought-after vacation destinations in America. The beaches are beautiful and the weather is amazing. If you are an investor looking for a Short Term Rental in the area, it can be hard to find the right home. So we have crunched the numbers to determine if your home should include a pool. It is a key decision when buying in warm climates.

 

WEATHER


In the Panhandle, daily high temperatures are 82 degrees Fahrenheit in the summer and 66 degrees in the winter. For many vacationers, pools are a great option because the Panhandle area can be quite warm.

Interestingly, homes with a swimming pool are more likely to be rented for between $20,000 and $30,000.

THE INVESTOR

 

If you are an investor looking for more cash flow and a home that has a pool, it is important to consider whether to buy a property with a pool now or later. What is the best option?

 

This question can be answered by first comparing the prices of homes with and without pools. Homes with a pool in Panhandle cost $450,000 less! We could quickly finish this article if we just wanted to tell a straightforward story about purchasing a home without one. After taking into consideration all costs associated with building a swimming pool, we would conclude that buying a house without one would result in a savings of 390,000. Unfortunately, these savings are illusions.

 

Square footage is the main reason for the huge difference in the prices of homes with pools and homes without. A pool can increase the square footage of a home by 630 feet. This could add up to as high as $350,000. With this information, you can save $40,000 by building a pool. However, this is an oversimplification.

 

To ensure that our data was as accurate as possible, each category contained 200 square feet. Next, we calculated the prices for homes without and with pools to determine the differences between these two categories. Also, we calculated the average CAP, expected occupancy percentage, estimated rent, bedrooms and bathrooms for each range. This analysis revealed an unexpected observation: Houses with pools are more likely to have bedrooms and bathrooms than those without, even if they are located in the same area.

A home with a pool has five bedrooms, five bathrooms and is typically 2800-3000 square feet. Homes without a pool, on the other hand, have four bedrooms, four bathrooms and an average of four bathrooms. As you can see, an increase of bedrooms and bathrooms usually leads to an increase on the price. So we will compare homes with a swimming pool between 2800 and 3000 square feet to homes that don't have a pool.


For homes between 2800 to 3000 sq. feet, with 5 (+/- (1) bedrooms, 5 (+/- (1 bathrooms), and no hot tub or pool, the average cost is $1,133,000. It is $160,000 more than a home that has a pool between 2800-2000 square feet. To calculate the cost to add a pool to the home, we first subtract $35,000 from the house's value. Then, we add.166* to the average yearly rent. The reason for the.166 is that it takes about two months to build a pool. It is obvious that the rent lost will increase the opportunity costs of building a swimming pool.

We can calculate the average cost of a pool for a home at $52,944 using the above equation. A pool can be built on a 2800- to 3000-square-foot home. This would mean that a pool is cheaper than buying an already installed pool.

 

However, adding a swimming pool to your home does not always make you save money. A pool can be built for as little as $4273 in homes that are between 2200 and 2400 square feet. It is easy to assume that such a finding is insignificant. Therefore, it is not clear which option would be more affordable for your square foot.

 

We did not find any category that showed that building or maintaining a pool would make a house more expensive than one with a pool already in place. Installing a swimming pool might cost the same as buying a home without one. However, the additional effort involved in installing it could make the house more expensive. This study is very specific to each area. It will differ from one area to another whether you are building a swimming pool in a newly built home or purchasing a home that already has one.

 

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