Apartment Pool Maintenance Costs: What to Underwrite
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A pool is one of the amenities residents notice first, and one of the costs an owner pays every month, whether or not anyone swims. Water has to be treated. Equipment wears out. The surface needs repair. The health department or the city may inspect it. A sponsor who copies the seller's pool expense without asking what it covers can miss a large line in the budget.
This guide lists the operating and capital costs of an apartment pool, shows how to build them into underwriting and explains how to test whether the pool earns its keep. It is not a guide to pool safety law. Check the rules for your state and city before you change how the pool is run.
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What does a pool cost each year?
- Chemicals and water treatment. Sanitizer, pH control and the supplies the service company uses.
- Service contract. A weekly or monthly visit to test the water, clean the filter and check the equipment.
- Cleaning and debris. Leaves, storm debris and the deck area.
- Inspections and permits. Where the city or county requires them.
- Lifeguard or attendant, only where the local rule requires one. Many apartment pools do not need one, but the rule decides.
- Water and electricity for the pump, which the utility section of the budget should carry.
What does a pool cost over time?
- Surface. Plaster, tile and coping wear out. Replacement is a major job and often needs the pool closed for weeks.
- Pump, filter and heater. These are replaced on a cycle that depends on use, the water chemistry and the maker's guidance.
- Deck, fence and gate. Repairs to safety fencing and gates are part of the cost of keeping the pool open.
- Accessibility items. Where the pool must have an entry lift or a path to the water, budget it when the rule applies.
Hypothetical example
These figures are made up for illustration. Get quotes from the pool service company and a plaster contractor.
A 60-unit building has a pool with a plaster surface. The operating costs are chemicals at $3,600 a year, a service contract at $2,400, cleaning and debris at $1,500, and a required yearly inspection and permit at $500. The owner adds the pool's share of power and water on the utility line, not in this table.
| Item | Yearly amount (made up) |
|---|---|
| Chemicals and treatment | $3,600 |
| Service contract | $2,400 |
| Cleaning and debris | $1,500 |
| Inspection and permit | $500 |
| Operating total | $8,000 |
The surface is assumed to need replacement in year 8 at $28,000. Spread over eight years, that is $3,500 each year. The annual pool cost is then $8,000 plus $3,500, or $11,500, before utilities and before any repair of the pump or filter.
Does the pool pay its way?
Test the amenity against the rent. Suppose the owner believes a pool supports $15 a month more rent per unit. For 60 units that is $900 a month, or $10,800 a year. At $11,500 a year in cost, the pool does not pay for itself on the rent premium alone. The owner may still keep it for leasing, retention or the building's marketing, but the plan should say so. Count the premium only when the leases and the comparable buildings support it.
What should you check before you buy?
- The age of the surface, the pump, the filter and the heater, from the seller's records and an inspection.
- The service contract, including who pays for repairs above a set amount.
- The inspection reports from the health department or city, and any open notice.
- Whether the lease or the amenity list promises the pool, and what happens if it closes.
- The insurance for pool liability, which the property manager and the broker can confirm.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5 or more units under Rule 506(b) or 506(c). The deal's operating budget and reserve show the pool's yearly cost and the surface reserve, so investors see the line and the reason for it. DoorRaise does not operate pools or give safety advice. Setup is $1,500 (non-refundable), and the administration fee is $5,000 a year from closing.
Start with a sponsor page or see the fees.
FAQ
Is a pool required in an apartment building?
No. The lease and the local rule decide. Many buildings have no pool, and the rent comparables show whether residents expect one.
Should a sponsor close a pool to save money?
Closing a pool can lower the cost, but it can also lower the rent or the leasing. Test both sides with the rent comparables and the lease terms before you decide.
How often should a pool surface be replaced?
It depends on the material, the water chemistry and the use. Ask the plaster or tile contractor for the expected life of the surface you have, and use that figure in the reserve.
Where does the pool go in the operating budget?
Chemicals, service, cleaning and inspections go in the operating expenses. The surface, pump and filter go in the reserve or the capital budget.
Sources
- Apartment repairs and maintenance contract services in underwriting, for how service contracts are underwritten.
- Apartment utility expenses in underwriting, for the power and water line.
- Syndication reserves for operating and capital replacement, for how reserves are set.
- Example figures are hypothetical. No local pool rule or contractor price is cited here. Check both with the local health department and quotes from your vendors.
This article is general information, not legal, tax or investment advice. Talk to a local attorney about pool safety rules, a CPA about the expense treatment and a securities attorney about your deal. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.