As a landlord, you’re already juggling countless responsibilities and potential liabilities. Now, thanks to new legislation in North Carolina allowing residents to rent out swimming pools, there’s another risk factor you need to consider: Is your tenant secretly running a pool rental business from your property?
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The New Reality: Pools as Rental Income
Recent changes to North Carolina state law now permit residents to list their backyard pools on popular rental platforms to generate extra income. While this might sound like a harmless side hustle for your tenants, it creates a significant liability exposure that many landlords aren’t even aware exists.
Think about it: strangers are now potentially accessing your property, using your pool, and engaging in inherently risky water activities—all without your knowledge or consent.
The Airbnb Parallel: A Familiar Problem in a New Package
If this scenario sounds familiar, it should. We’ve seen nearly identical issues arise with unauthorized Airbnb operations. Tenants rent out rooms or entire units without landlord permission, creating insurance nightmares, property damage, and liability concerns. Pool rentals represent the same fundamental problem: commercial activity on your residential property without proper oversight or protection.
The key similarities include:
The Safety and Liability Concerns
Unlike Airbnb situations that primarily involve property damage and noise complaints, pool rentals introduce serious safety risks. According to Mecklenburg County officials, proper pool rental operations require:
Here’s the critical question: Are you confident your tenant is maintaining these safety standards? More importantly, if someone gets injured or drowns in your pool during an unauthorized rental, where does that leave you legally and financially?
Protecting Yourself: Action Steps for Landlords
Review Your Lease Agreement: Ensure your lease clearly prohibits commercial activities and subletting without written permission. Consider adding specific language about pool rental platforms.
Check Your Insurance: Contact your insurance provider immediately to understand how unauthorized pool rentals might affect your coverage. You may need additional commercial liability protection.
Conduct Regular Property Inspections: Look for signs of increased activity, unfamiliar vehicles, or commercial-grade pool equipment that might indicate rental operations.
Communicate with Tenants: Have an honest conversation about the new law and make your expectations clear regarding unauthorized commercial use of the property.
Consider Pool-Specific Addendums: For properties with pools, consider requiring tenants to acknowledge pool safety responsibilities and agree not to engage in rental activities.
Property Management Frequently Asked Questions (FAQ)
The Bottom Line
Pool rentals might seem like innocent extra income for your tenants, but they represent a serious liability risk that could cost you significantly more than any rent increase would generate. Just as smart landlords have had to adapt their leases and policies to address unauthorized Airbnb operations, it’s time to get ahead of the pool rental trend.
Don’t wait until an accident happens to discover your tenant has been running an unauthorized business on your property. Take action now to protect yourself, your property, and your investment.
To read more on this topic, visit NC residents now able to rent out their pools – WCCB Charlotte’s CW.
