Sauna for Rental Properties: Long-Term Rental and Investment Guide

Sauna for Rental Properties: Long-Term Rental and Investment Guide

Adding a sauna to a rental property is a strategic move that most landlords overlook. While hot tubs get all the attention (and all the maintenance headaches), saunas are simpler to maintain, cheaper to operate, and increasingly in demand from tenants who prioritize wellness amenities.

This guide focuses on long-term rental properties - not short-term vacation rentals. The considerations are different when tenants live with the sauna daily for months or years at a time.

The Investment Case

Rent Premium

A sauna as an amenity allows you to charge $100-$300 more per month in rent depending on your market. In competitive rental markets where units are similar, a sauna can be the differentiator that justifies the premium. Wellness-focused renters actively search for properties with sauna access.

Tenant Retention

This is the less obvious but arguably more valuable benefit. Tenants who have access to a sauna develop a routine around it. That routine creates stickiness - they are less likely to move because they would lose their sauna access. Reduced turnover saves you thousands in vacancy costs, cleaning, and remarketing.

Property Value

A well-installed sauna adds to the property's appraised value. Outdoor saunas in particular are visible amenity improvements that appraisers and future buyers recognize. If you eventually sell the property, the sauna adds value beyond what you paid for it.

ROI Calculation

A quality outdoor sauna installed runs $4,000-$8,000. If it generates $150/month in additional rent, that is $1,800/year. The sauna pays for itself in 2-4 years and continues generating premium rent for the life of the unit (15-25 years with proper maintenance).

Choosing the Right Sauna for a Rental

Outdoor Is Better for Rentals

An outdoor sauna is the strong preference for rental properties because:

• It keeps heat and moisture out of the living space
• It is visible as an amenity (renters see it when touring the property)
• It does not take up interior square footage
• Maintenance and inspections are easier with outdoor access

Durability First

Tenants will not baby your sauna. Choose materials that handle regular use without constant attention:

• FSC-certified heat-treated Canadian hemlock: Excellent durability, minimal maintenance, resists moisture damage from the heat-treatment process
• Tempered glass door: More durable and lower maintenance than a wood door
• Harvia or Huum heater: Proven commercial-grade reliability. These heaters run for years with minimal servicing.
• Simple controls: A basic digital controller is more reliable and tenant-friendly than complex systems

Size

For most rental properties, a 4-person sauna (roughly 4x6 or 6x6 feet) is the right size. It accommodates a couple or a small family without being so large that it dominates the yard or costs a fortune to heat. Browse our sauna kits and outdoor saunas for options in this size range.

Liability and Legal Considerations

Insurance

Notify your landlord insurance carrier about the sauna installation. Ensure your policy explicitly covers:

• The sauna structure itself (property damage coverage)
• Liability for tenant injuries related to sauna use
• Fire damage originating from the sauna or its electrical system

Some insurers require specific safety measures (signage, temperature limits, GFCI protection) before they will cover a sauna. Comply with every requirement - insurance is your primary financial protection.

Lease Provisions

Add sauna-specific language to your lease agreement:

• Usage rules: Maximum temperature, maximum session time, no alcohol use in or before sauna, children must be supervised
• Maintenance responsibilities: Clarify what the tenant is responsible for (wiping down after use, reporting issues) versus what you handle (heater service, structural maintenance)
• Liability acknowledgment: Tenants acknowledge the risks of sauna use and agree to follow posted guidelines
• Guest policy: Whether guests can use the sauna and under what conditions
• Damage liability: Who pays for damage beyond normal wear and tear

Safety Requirements

• Post safety and usage guidelines in a visible location near the sauna
• Set a maximum temperature on the heater controller (most support a lockable max temp)
• Ensure the auto-shutoff timer is enabled (60-minute max is standard)
• Verify GFCI protection on the electrical circuit
• Confirm the door swings outward and cannot be locked from outside
• Ensure all permits and inspections are current

Installation Considerations

Permits

All permit requirements that apply to owner-occupied homes apply to rentals - and then some. Rental properties face additional scrutiny from building inspectors. Make sure your electrical permit, any building permits, and the installation itself are fully code-compliant. Unpermitted work on a rental property can result in fines, forced removal, and insurance claim denials.

Placement

Place the sauna where you can inspect it without entering the tenant's private living space. Near the back of the yard with access from a side gate is ideal. You need to be able to perform maintenance and inspections without inconveniencing the tenant.

Electrical

Run the dedicated circuit from the house's main panel with proper permits and inspection. Budget $400-$700 for the electrician. Make sure the disconnect switch is accessible for both you and the tenant.

Maintenance Schedule for Landlords

Build sauna maintenance into your property maintenance routine:

• Quarterly: Visual inspection of exterior and interior condition. Check heater operation, door function, bench stability, and vent clearance.
• Annually: Deep inspection of the heater elements, electrical connections (have your electrician check), wood condition, and roof/weather sealing on outdoor units. Replace heater stones if cracked or deteriorated.
• At tenant turnover: Full deep clean of all surfaces. Inspect and repair any damage. Test all systems before the new tenant moves in. Sand benches if needed.

Multi-Unit Properties

For duplexes, triplexes, and small apartment buildings, a shared sauna can be a powerful amenity. Considerations for shared use:

• Establish a reservation system or first-come-first-served hours
• Post clear rules about cleaning up after use
• Include sauna access in all leases with consistent terms
• Size the sauna for peak expected concurrent use (usually 4-6 person capacity for 2-4 unit buildings)
• Consider a timer lock that limits usage to specific hours (e.g., 6am-10pm)

Frequently Asked Questions

How much extra rent can I charge for a sauna?

$100-$300 per month depending on your market and the overall quality of the property. In high-demand markets with wellness-focused demographics, the premium can be higher.

What if a tenant damages the sauna?

Lease provisions should address damage beyond normal wear and tear. The tenant's security deposit covers minor damage. For major damage, your landlord insurance and the lease terms determine responsibility.

Should I include electricity for the sauna in rent?

If utilities are tenant-paid, the sauna's electrical cost is already covered. If you pay utilities, factor in $15-$30 per month for typical sauna use when setting the rent premium.

What happens to the sauna if I sell the property?

An installed outdoor sauna is typically considered a fixture and conveys with the property. It adds to the sale price. If you want to keep the sauna, you would need to specify that in the sale agreement and remove it before closing.

Is a sauna or hot tub better for a rental property?

Saunas are generally better for rentals. They require less maintenance (no water chemistry management), have lower operating costs, fewer liability concerns (no drowning risk), and last longer with less upkeep. Hot tubs require weekly chemical balancing and frequent component replacement.