Sauna for Investment Property: Does It Boost ROI?

Sauna for Investment Property: Does It Boost ROI?

You own a rental property or vacation home and you're wondering if adding a sauna will actually make you more money. Not just look cool in photos, but genuinely increase your revenue enough to justify the investment.

For certain types of properties, the answer is a clear yes. For others, it doesn't make financial sense. Here's how to figure out which camp you fall into.

Where Saunas Make Money

Vacation Rentals and Airbnbs

This is where saunas have the biggest ROI impact. Vacation rental platforms like Airbnb and VRBO let you filter for properties with saunas, and guests actively search for this amenity. Properties with saunas in the right markets can charge a meaningful premium.

Data from short-term rental markets shows that properties with saunas can command 15-30% higher nightly rates compared to similar properties without one. In cold-weather destinations (mountain towns, lakefront cabins, northern rural areas), the premium can be even higher during winter months.

A $4,000-$6,000 barrel sauna that increases your nightly rate by $30-$50 pays for itself in 80-200 booking nights. For a property that books 150+ nights per year, that's under two years to break even.

Mountain and Lake Properties

Properties in ski towns, near lakes, or in rural mountain areas see the highest return from saunas. The sauna fits the lifestyle guests are looking for - it pairs perfectly with cold weather, outdoor activities, and the cabin/lodge aesthetic. Guests expect it, search for it, and will pay for it.

Wellness-Themed Rentals

The wellness travel market is growing fast. Properties that position themselves as wellness retreats - sauna, cold plunge, yoga space, nature setting - can charge significant premiums. A sauna is often the centerpiece of this positioning.

Where Saunas Don't Make Sense

Urban Long-Term Rentals

If you're renting a city apartment or condo on a 12-month lease, a sauna probably won't increase your rent enough to justify the cost. Long-term tenants value bedrooms, bathrooms, kitchens, and parking more than wellness amenities. A sauna is a nice bonus, not a rent-driver.

Hot Climate Beach Rentals

A sauna in a Miami Beach Airbnb isn't going to move the needle the way it does in a Vermont cabin. Guests in hot climates are looking for pools, AC, and ocean access. A sauna can still be an amenity, but it won't command the same premium.

Budget or Student Rentals

Properties targeting price-sensitive renters won't benefit from a sauna investment. The target tenant is optimizing for low rent, not wellness features.

Calculating the ROI

Here's a simple framework to estimate whether a sauna makes financial sense for your property:

1. Total investment: Sauna cost + installation (electrical, foundation, delivery). Budget $4,000-$8,000 for a quality outdoor sauna fully installed.
2. Nightly rate increase: Research comparable properties in your area with and without saunas on Airbnb/VRBO. The difference in nightly rate is your per-night premium. Typically $20-$50/night.
3. Annual nights booked: How many nights does your property book per year? More bookings = faster payback.
4. Annual revenue increase: Nightly premium x nights booked. Example: $35/night x 150 nights = $5,250/year.
5. Payback period: Total investment divided by annual revenue increase. Example: $6,000 / $5,250 = 1.14 years.
6. Ongoing costs: Subtract maintenance and electricity ($300-$600/year) from annual revenue increase for net ROI.

Occupancy Rate Impact

Beyond the nightly rate premium, a sauna can increase your occupancy rate. Properties with unique amenities book more nights because they stand out in search results, generate better reviews (guests love mentioning the sauna), photograph better for listings, and attract repeat guests who specifically want the sauna experience.

Even a 5-10% increase in occupancy rate on a vacation rental can translate to thousands of dollars in additional annual revenue.

Best Sauna Types for Investment Properties

Barrel saunas are the most popular choice for vacation rentals. They look incredible in listing photos, are relatively affordable ($3,500-$6,000), heat up efficiently for guest use, and require minimal maintenance between guests. Browse our barrel sauna collection.

Outdoor cabin saunas work well for premium properties that can justify higher nightly rates. They offer more interior space for multiple guests and create a more luxurious experience. Check our outdoor saunas.

Adding a cold plunge alongside the sauna increases the wellness appeal even further and can justify an additional nightly rate bump.

Practical Considerations for Rental Saunas

• Safety: Post clear usage instructions and safety guidelines inside the sauna. Include maximum temperature and time recommendations.
• Liability: Check with your insurance provider about liability coverage for sauna use by guests. You may need an additional rider.
• Maintenance between guests: Wipe down benches, ventilate after use, check heater function. This adds 10-15 minutes to your turnover routine.
• House rules: Set clear rules about sauna use in your rental listing - hours, capacity, no alcohol in the sauna, children policy.
• Durability: Rental saunas see heavier use and less careful treatment than personal saunas. Invest in quality construction that can handle guest traffic.

Bottom Line

For vacation rentals and Airbnbs in the right markets (cold climate, mountain, lake, rural, wellness), a sauna is one of the best ROI improvements you can make. The payback period is typically 1-3 years, after which it's pure profit. For long-term urban rentals, it's usually not worth the investment.

Explore our barrel saunas and outdoor saunas to find the right option for your investment property.