There are pros and cons to running a fitness center on a multi-housing property. The advantages can allow you to bring in more revenue, and the disadvantages can cost you. Are your cost benefits for that fitness center balanced in your favor?
Tenants will pay higher rent to live in a building with a gym.
Tenants love to think that they have the opportunity to better themselves even if they never do and will pay up to live in a place that has a fitness center.
Enhanced Community Experience
You can enhance the community living experience by offering group classes, weight loss clinics, new equipment from time to time, and other incentives at your fitness center.
You mainly have the cost to create and keep up the facility. If you do not put the fitness center together properly or you fail to keep up with maintenance, you could face liability costs as well.
As far as liability is concerned, you will want to see what your current liability insurance will cover. What exculpatory clauses are in your rental agreement and what exactly do they cover? Have you listed an indemnification agreement often called a hold harmless agreement that extends to the gym in you lease as well?
If you have these in place, your extra liability costs to run a fitness center will remain only the cost you pay to your insurer for liability insurance; AS LONG AS you design the center properly and keep the center in good working order. If a tenant or guest gets sick or hurts themselves, and it is a result of your negligence, you do risk a lawsuit.
Before adding a fitness center to your multi-housing facility, talk to a lawyer about your current lease agreement, and if it needs to be amended. Look for qualified fitness center design services to build the safest and easiest to upkeep gym possible.
Opti-Fit can help you design a safe and clean gym that your tenants will love, and do it on budget. We also offer equipment servicing and will help you plan and replane as new equipment is released and trends come about. Visit the Opti-Fit website today for more information.