The study, released last week by the National Association of Landscape Professionals in partnership with the National Association of Realtors, looks at the return on investment for some of the most common landscaping upgrades and other outdoor feature projects. The report, titled “2016 Remodeling Impact Report: Outdoor Features”, also looks at the reasons why projects are undertaken and considers the happiness a project brings to the owner upon completion.
While the study is focused on homeowners, the results do offer some interesting insights for commercial property managers about the most effective ways to increase the value of your owner’s property through outdoor features and upgrades.
Not surprisingly, the least financially responsible outdoor project was the addition of a swimming pool. While homeowners reported the highest degrees of happiness after the project was completed, the study found that only half of what they spent would ever be recovered at resale.
This would also be true for an association that might be considering an addition of a community pool, playground, or sports courts. Pools and other recreational spaces are some of the highest liability areas for any HOA, they are expensive to keep in good working order, and very rarely become the community gathering places that well-intentioned Board Members envision.
If you’re looking for an outdoor project that won’t lose half the money you put into it, the survey found that landscape overhauls, patios, and decks all returned the investment put into them and brought high levels of enjoyment to homeowners.
For a commercial property or residential association, think of anything that creates or enhances areas where people gather at your property. In a residential community, this could be creating a nature trail or a community garden. For a commercial property, consider adding or updating outdoor break areas and dining spaces. Landscape overhauls and enhancement projects, like enlarging annual color beds, or adding trees and shrubs around parking areas, are other examples of outdoor features that are both a sound financial investment and will increase the visual appeal and enjoyment of your property.
So what was the number one, overall best investment for anyone looking to improve their outdoor spaces?
The study found that the most appealing project also offers the highest return on investment, and it’s something most homeowners don’t ever consider when selling their home – a lawn care treatment program. Simply having a regular fertilization and spray application program in place returns over 300% on its investment. That means you can expect $3 back for every $1 you spend on your landscape management program!
It’s not nearly as exciting as a pool or a new firepit, but a lawn that’s lush, green, and weed free is the number one recommendation made by realtors to increase the value of their sellers’ homes.
For the professional PM, this is information that you can apply to your properties, too. Whether you’re a CAM serving as advisor to homeowner associations or a CPM managing and leasing commercial spaces, make sure that any discussions about landscaping or outdoor feature projects start with a careful evaluation of the health and quality of your green spaces. Not only will it immediately increase the attractiveness of your property, it’s also a sound investment that adds long term value to the property for the owners. Something they’ll be sure to appreciate when renewing your management services agreement.
You can read the complete report on the REALTOR website here. http://www.realtor.org/reports/remodeling-impact-report-outdoor-features
Or you can view an infographic created from the study’s findings here. http://www.realtor.org/infographics/2016-outdoor-remodeling-impact