The Southern Highlands Airbnb and holiday rental market boomed between 2017 and 2023. Many investors bought properties specifically for short-term letting, and a pool was often viewed as a key drawcard, something to put in the listing and charge a premium for. As the market has matured, a growing number of those same operators are now reassessing whether a pool is actually an asset or a liability on their property.
Quick Answer (BLUF)
For many holiday rental properties in the Southern Highlands, removing the pool is the right financial decision. The liability exposure from an unattended pool accessed by guests (often with children) is significant. Insurance premiums for properties with pools are higher. Maintenance is a constant cost and management headache. And in many property segments, the revenue premium from having a pool is smaller than the cost of maintaining one safely. If you’re averaging fewer than 30 pool-use days per year across guests, the maths often favour removal.
The Liability Reality for Holiday Rental Operators
Homeowners who occupy their own pool accept and understand the risks. Holiday rental operators have a different exposure: guests who don’t know the pool’s quirks, children who may not be strong swimmers, and no owner or host present to supervise. In the Southern Highlands specifically:
- Many properties with pools are operated remotely (the owner lives in Sydney and manages the rental via a platform)
- Guest pool usage often happens in the evening or at night when visibility is reduced
- Southern Highlands winters mean the pool is cold and uninviting for much of the year, but guests may still enter it
- Pool fencing requirements must be fully complied with at all times between guest stays
If a drowning or near-drowning event occurs at your holiday rental, your liability as the property owner is substantial. This is true even if the pool was fenced correctly and the guest was an adult who entered voluntarily. The pool removal and home insurance guide covers the insurance dimension in detail.
What Does Pool Compliance Actually Require for a Rental Property?
Pool owners in NSW have specific compliance obligations under the Swimming Pools Act 1992. For short-term rental properties, these are non-negotiable:
| Obligation | Details |
|---|---|
| Pool fence compliance | Barrier must meet current Australian Standard (AS 1926.1-2012) |
| NSW Pools Register listing | Property must be registered |
| Compliance certificate | Required every 3 years for rental properties (previously 1 year) |
| Pool safety record | Must be provided to tenants/guests |
| Rescue equipment | Reaching pole and life ring required at poolside |
The compliance obligation on rental properties is higher than on owner-occupied properties. Annual pool fence inspections by a certifier are required for properties where the pool is available to guests. Each inspection costs $200 to $400. If the fence fails, it must be repaired and reinspected before guests can access the pool.
Managing this compliance cycle remotely, from Sydney, while the property is intermittently occupied by different guests, is a genuine operational headache.
The Revenue Premium: Is the Pool Worth It?
The honest question is whether the pool generates enough additional booking revenue to justify its cost and compliance burden. The answer depends heavily on property type and price point.
| Property Segment | Pool Revenue Premium | Pool Annual Cost | Net Benefit |
|---|---|---|---|
| Prestige property (Bowral, >$800/night) | $100 to $200/night, adds 10-30 bookings/yr | $4,000 to $8,000/yr | Often positive |
| Mid-range property (Mittagong, $250 to $450/night) | $50 to $100/night, adds 5-15 bookings/yr | $3,500 to $6,000/yr | Marginal to negative |
| Bundanoon/Moss Vale budget rentals (<$250/night) | $30 to $60/night, limited uptake in winter | $3,000 to $5,000/yr | Usually negative |
For most mid-range Southern Highlands holiday rentals, the pool premium doesn’t cover the running costs, particularly when you factor in:
- Winter months where the pool is cold, closed or unused (the Southern Highlands gets 40-80 frost days per year)
- Maintenance calls mid-booking (green pool, equipment failure)
- The cost of pool heating to make it genuinely usable year-round
When Guests Can’t Use the Pool: The Hidden Frustration
A pool that guests can’t or won’t use generates a different problem: disappointment and negative reviews. The Southern Highlands winter makes a pool unusable without heating, and a cold, green, untreated pool discovered on arrival is one of the most common sources of complaints in Highlands short-term rental reviews.
Without heating ($1,500 to $3,500 per year in energy costs), the Southern Highlands pool season is effectively November, March. For a property that’s booked year-round, a pool is essentially a five-month-per-year amenity that requires twelve months of maintenance.
What Happens to Bookings After Pool Removal?
This is the genuine concern most rental operators have: will removing the pool hurt bookings? The evidence from the Southern Highlands market suggests:
- Properties in the prestige segment (Bowral, Burradoo, Sutton Forest) may see some booking impact at the top end of the market, particularly for summer
- Properties in the mid-range and lower segments typically see minimal booking impact, particularly if the outdoor space is attractively landscaped after the pool is removed
- Many operators find that removing the pool and creating a beautiful garden or outdoor entertaining area actually improves the listing’s photographic appeal
The does removing a pool add value guide covers the property value angle in more detail, though the rental market data broadly supports the same conclusions as the sale market.
Timing Pool Removal Around Rental Bookings
If you decide to proceed with pool removal, timing matters for minimising booking disruption:
- Pool removal typically takes 2-4 days on site, plus a lead time of 3-6 weeks for council approval
- The site will be inaccessible to guests during works and for a few days after (dust, settling, cleanup)
- Best timing in the Southern Highlands is April, May (post-summer, pre-peak winter bookings) or late August, September (pre-summer peak)
- Block out the dates in your booking platform at least 6 weeks ahead
Coordinating the approval, contractor scheduling and booking block-out in advance avoids last-minute cancellations. The how long pool removal takes guide explains the full timeline.
After the Pool Is Gone: Updating Your Listing
Once the pool is removed and the site landscaped, update your Airbnb or Stayz listing promptly:
- Remove all references to the pool from the description and amenities
- Replace pool photos with new outdoor area photos (the space often looks bigger and more usable)
- Consider a price adjustment for the first few weeks if you’re concerned about booking velocity
- Update your insurance policy, you should see a premium reduction
The Partial Fill-In Option
If you’re not ready for full removal, a partial fill-in eliminates the safety and compliance burden while reducing (though not eliminating) maintenance costs. With the pool filled in and not accessible to guests, you can remove it from your listing and from the NSW Pools Register.
Partial fill-in costs $8,000 to $14,000 for a concrete pool, less than full removal ($18,000 to $30,000) but with limitations on future site use. See partial vs full pool removal for the trade-offs.
Frequently Asked Questions
Do I need to tell Airbnb or Stayz that I’m removing the pool? Yes, you should update your amenities listing to accurately reflect the property. Operating with a listed amenity that doesn’t exist is a misrepresentation. Update your listing as soon as works are complete.
Will removing the pool affect my short-term rental permit or council approval in Wingecarribee Shire? Removing a pool doesn’t affect your short-term rental registration. The two approvals are independent. You will need a CDC or DA for the pool removal itself, which is a separate process.
What happens to my home insurance premium when the pool is removed? Most home insurers will reduce the premium once a pool is removed and removed from the NSW Pools Register. Notify your insurer promptly after removal is complete.
Can I remove the pool during the busy Christmas/summer booking period? Technically yes, council approval and contractors can be organised at any time of year. But practically, removing the pool during December, January will disrupt your most valuable booking period. April, May or August, September are better timing choices.
What’s the best outdoor setup to replace a pool on a holiday rental? This depends on your property and budget. Popular options include an outdoor entertaining area with quality furniture and a fire pit (works well in the Southern Highlands cool climate), a native garden with stone pathways, or a productive garden that adds to the property’s lifestyle appeal.
Want to discuss pool removal timing and costs for your Southern Highlands holiday rental? Request a free quote and consultation from Southern Highlands Pool Removals.