A Utah homeowner has built a lucrative side business renting her pool through Swimply, the peer-to-peer pool-sharing platform, and now faces a seller's dilemma. She wants to transfer this income stream to a buyer, essentially charging extra for the property based on the pool rental business's earning potential.
The challenge is real. Pool rental businesses operate in a gray area legally. Many homeowners associations prohibit commercial activity on residential properties. Insurance policies often exclude liability coverage for rental pools. Tax implications remain murky for both current and future owners.
Swimply facilitates these rentals across the country. Homeowners list pools by the hour or day, typically charging between $20 and $100 per person depending on location and amenities. A five-star Utah pool generates thousands monthly in the right market. The platform handles booking and payment processing but leaves compliance to the homeowner.
For this seller, the math is straightforward. If her pool generates $3,000 monthly, that's $36,000 annually. At a 5% capitalization rate, the pool business could add $720,000 to the property's value.
Buyers should think carefully. Purchasing a home specifically for pool rental income carries risk. Future owners inherit the insurance liability. HOA regulations could change. Swimply could modify its fee structure or commission. The pool itself requires maintenance costs that could eat into margins.
Real estate agents face complications too. Most multiple listing services don't have fields for describing active rental businesses on residential properties. Appraisers typically ignore non-traditional income when valuing homes.
Lenders present another obstacle. Most conventional mortgages require owner-occupancy for single-family homes. A buyer financing the purchase as an investment property through Swimply might only qualify for a portfolio loan or cash offer, pushing rates higher.
The seller's best path