I’m looking at a 4-plex that has a pool. Do I have to have additional coverage from my insurance company to cover any liabilities? Do you guys have any special clause in your lease for who can use the pool, hours of operation,…to cover any legal issues?
I’m worried about the maintenance and legal liabilites. Any feed back would be appreciated.
Thanks!
The pool will likely raise your insurance quite a bit.
I would highly encourage you to include in your lease specific details as to who can use the pool. Otherwise you end up with numerous “family” members and guests there just for the pool. You can state that only those living in the complex plus 1 or 2 or 3 (whichever you choose) guests per unit may use the pool. Check with your insurance company because there are many issues you must address: life-saving equipment, signs, etc. An umbrella policy will help cover any possibly liabilities but you may need a policy particular for the pool. Best of luck!
There are also usually City codes to operating pools. In Houston if there are over 30 units the person that maintains the pool has to be licensed. The pool has to be clear to the bottom and algae free. There must be records of how often the water is checked for ph and chlorine levels etc. These checks will be inspected periodically. You have to have proper signage and lifesaving equipment. As I said these come into play for over 30 units in Houston, check your city.
The lease can limit the usage all you want but it won’t help if someone drowns, you will still get sued and lose. Heck if someone jumped the fence at night to swim and drowned you’d be sued as well, even if the person doesn’t know anyone in the building.
The cost of maintenance, the extra insurance and the increased risk would probably nullify any possibly higher rents. I wouldn’t bother if it were me, in fact I’d be hestitant to walk on it completely just to avoid the potential problems.
What if I get rid of it after the purchase and have it filled in? Anyone done that before?
If the numbers work go for it. Nothing wrong with filling it in after purchase as long as the price isn’t too high for the property since you’re buying it with a pool.
Yes insurance will increase and you MUST have signs posted at the pool before you enter the pool grounds about the specific rules. Otherwise an unscrupulous lawyer, if anyone were to ever get hurt would definitely find a way to make you liable for someone elses irresponsibility. Lawyers and fast food joints is what we are today…
Even if you had signs and made everyone sign release forms you still might get sued. Even if you won you would still be in court for a long timeframe and lose tens of thousands in court costs.
That is true, until judges grow some brains and start throwing some of the silly lawsuits that these lawyers bring about. There will always be problems when someone has to take responsibility for others actions. We have become a country of no personal responsibility, blame everyone else for your own actions, point the finger. This is what we have to thank the hippie generation for. They are now running this country.
Hey I am a liberal and I am as conservative as the next guy!!
When did you have yours removed…?
:-X
Keith
From what I hear I’d be much better off spending the money and filling it than the potential legal costs. One wonders how all these Apt. complexes keep their pools going!
I had one at a house that I lived in myself…it was a royal PITA…I’m too old to mess with one ever again – life’s too short. One large enough for a complex would be a real pain!
Keith
Hey KD I just might buy that shirt! Thanks ;D
Check your insurance policy as they all differ. I work for a commercial insurer as an underwriter and a pool does offer more exposure than a typical property. My personal opinion…rip it out and save the money/headache. Unless it’s your own house, pools are worthless for investments. It’s like a boat.
Talking about the legal ramifications of a bodily injury claim…regardless of your lease, you’re liable to maintain a safe environment. A kid dies on your property and your insurance will pay…if you’re not covered appropriately (shame on you), you’ll pay with lost assets/wages/etc.
put a sandbox in.