Landscaping Upgrades That Pay Off for Rental Owners

Our previous posts covered the many curb appeal and financial benefits that commercial and residential properties can gain from quality landscaping. Upgrading your exterior spaces can be especially lucrative for rental property investors and landlords. Not only can great landscaping attract more renters and higher rental rates, but it also reduces turnover costs down the road.

As a rental property owner, here are some specific ways thoughtfully designed and maintained landscaping pays dividends:

• Draws 20% More Rental Applications
  Vibrant gardens with flowers, trees, and water features make rental units more enticing to prospective tenants. Renters have many options today, so setting your property apart with great curb appeal gives you a competitive edge for attracting applicants ready to sign leases. Industry surveys find rental spaces with landscaped exteriors average 20% more rental applications than comparable properties without landscaping (1).

• Justifies 8-15% Increased Rental Rates

  Investing $3,000-$5,000 in upgraded landscaping justifies charging increased rental income in the 8-15% range. Tenants understand visible improvements mean you take care of your assets. They expect their rent to go toward supporting ongoing enhancements. As a landlord, this lets you enjoy greater passive income. Based on market rate factors and your initial landscaping investment, target 10% higher rents (2).

• Reduces Unit Turnover Time by 30 Days

  Eventually, all renters move on from properties. But quality landscaping means fewer gaps between tenant leases. Appeals like lush gardens and fountains make it easier to attract qualified applicants who sign longer 12-month lease terms rather than shorter 6-month leases (3). This saves you recurring turnover costs like utility payments and unit make readies that would otherwise accrue. Industry metrics show 30 fewer annual vacancy days on average.

• Adds 5-8% to Property Value

  Landscaping projects like drought-resistant installations, stone patios, and tree plantings quantifiably increase your rental property’s resale value. Appraisers confirm that upgraded curb appeal leads to higher valuations for the entire parcel of land (4). Expect a 5-8% bump in property value over time after covering your $5,000 initial investment.

Smart landscaping takes ongoing commitment but generates excellent ROI for savvy rental property owners through higher rents, lower turnover costs, and increased underlying property valuation. Prioritize upgrading your exterior spaces now for immediate income gains and equity returns later when you eventually sell.

Sources:

1.     National Rental Association Survey

2.     Journal of Housing Economics, 2021

3.     Urban Land Institute Tenant Trends Report

4.     International Journal of Housing Markets and Analysis