The unit was rented "as is". You're not required to make any changes - just as the tenant is not required to renew the lease if they are unhappy with the place.
Personally, I would not want a dirt backyard as the dirt will find its way into the house and dirty the place, ruin the carpet, etc. And I've never understood the appeal of rocks.
I don't know the Phoenix area, but I suspect that a nice yard is a feature that many people would pay extra for.
Did you tell her you'd landscape it when she rented it? If not, she knew what it was like when she rented it. I would have a small patio or deck of some sort outside of the door to prevent dirt from being bought in. It could be as simple as a few pavers.
How long is the lease? I would imagine you can increase rent when you rock/turf it but you are not obligated to as others have said. The return on small improvements such as landscaping have always worked out for me. Say you can increase rent by $100 that will pay you back in about 2.5 years. I take that every time.
I would install the turf/rock combo. You'll keep the tenant happy (which means they may stay longer and take better care of the property) AND as Greg mentioned it will keep the dirt out of your house. Plus, it will add value to the home. In Arizona the backyard can be utilized 8 months out of the year. It's like an extended family room for most people (if there's a nice patch of grass and patio to enjoy).
@Joshua Dombal We live out in Queen Creek so we are familiar with the Phoenix market.
As others have said do you have to, no. But should you? YES!
Here is why: 1) You want your tenants to stay, so don't treat your newly built home like a slum lord, how would you want a landlord to treat your sister if she were renting this property? These aren't just tenants, they are people. 2) Dirt will track into the house if you don't do something with the yard and It will likely be a muddy mess come monsoon season and the kids will play in that. 3) When you go to re-rent the house a dirt yard will tell your new prospective tenants a lot about how you treat your property and you'r tenants, likely leading to lower quality of tenants, the market is not going to always be this hot.
The artificial turf has several drawbacks. It wears out over time and has to be replaced, like carpet. It is HOT in the summer and will not be a good play area. When your tenant gets a dog it is going to hold the smell of pet urine and "other" things.
I would consider putting in some concrete curbing with sprinklers and seeding it, SOD is way overpriced. Seed it with Bermuda, set the sprinklers to keep it wet and you will have a lawn in six weeks. With grass, when your tenant moves out just put down $20 of weed and feed and water it an you will be good. I bought foreclosures during the downturn with Bermuda lawns that had not been watered in over a year and were completely brown and full of weeds. Put down some weed and feed and turn on the sprinklers and 6 weeks later you had a decent lawn. That stuff is TOUGH.
In my area a dirt yard would be a nightmare so not sure how it would be in the desert. I'm trying to imagine a turf yard and what will happen when there is dog poo and pee on it but it sounds gross. If you plan on doing it at some point this may be your opportunity. The tenant is in the rental at the current price point due to the fact that the yard is as is. They can amend their lease to reflect pricing of finished yards but it is going to add whatever you feel is appropriate. I'd go with rocks due to my concern with poo but I have no experience so this may not be warranted.
Speaking as a home owner more than an investor here. We just had turf installed in our home in las Vegas (so similar environment). When we moved in a part of the yard was half grass/weeds half dirt. We finally agreed to do it and it has been well worth it. The yard looks better and our kids use it so much more than they did before.
Ours came with a 10 year warranty and is designed for use with animals (3 different types of sand were used) so it should hold up over time. The only thing our installer recommended was to have it "fluffed" a few times a year. Of course he offered to do it for a fee.
If your renter has kids I think it will make a big difference, and as others have mentioned, a happy tenant stays longer. For our family, we definitely see a difference and enjoy having the space be more useable.
I agree that the turf option would be the most appealing option as it's both functional for families and small pets along with being aesthetically pleasing. In the long run, you can end up charging more for rent because of this bonus amentity.
My house was just built in Phoenix AZ, the yard is currently dirt.
My tenant is wanting me to put in a patch of artificial turf so her kids can play and what not.
I know of other landlords in AZ who will put rock back there.
The rock is about $1,100; the rock + turf combo is $3,100.
Does anyone have advice here on what I should do?
Is there any reason for me to do the rock + turf combo?
Hi Joshua. The best advice I can give you is, run your business like a business. What do YOU want to do? Just keep communication open and be firm with your decisions.
My house was just built in Phoenix AZ, the yard is currently dirt.
My tenant is wanting me to put in a patch of artificial turf so her kids can play and what not.
I know of other landlords in AZ who will put rock back there.
The rock is about $1,100; the rock + turf combo is $3,100.
Does anyone have advice here on what I should do?
Is there any reason for me to do the rock + turf combo?
Hi Joshua,
Loved reading all of the comments. I would see what other rents are going for in your area that have a finished back yard. I have changed things at times to keep my tenants longer but honestly you never know. You cannot make everyone happy. What is the best way for you to spend that money?
This happened to me exactly in my Los Angeles SFH rental. I just did landscaping and turned dirt to gravel rocks for ease and rented out the unit. The tenants were a family with a young daughter and wanted to have turf for safety. In my mind i didnt like it at first since i just spent money on the landscaping but in the end we compromised. I told the tenant i'll be willing to compensate 1k off next month rent and they can cover the rest. They shopped around and found a place that charged around 3k. In my mind it was considered an upgrade long term and small fee to pay. Both sides happy in the end.
Were they under the impression when they signed the lease that there would be a turf yard? Or was it in the lease? If not, you're not under any obligation to do it. Now you have to think about can you get your money back and how quickly if you did decide to do it? Can you raise their rents enough when the lease is up to start recouping the costs in a reasonable amount of time?
@Joshua Dombal have you estimated how much more properties with some backyard upgrades rent for? If there is an upside in terms of improving the property you might consider installing the artificial turf. But I would only do so during the current lease if (1) it has been made clear to the tenants that the home was rented "as is." (2) if the tenants would like to have artificial turn installed they may make a request in writing as the first step. (3) You as the landlord respond in writing with a clear scope of what is to be installed, the timeline for installation, and an addendum that changes the rental another $50, 100, etc...
I'm in the design space, so just a few things to take into account the warranty. If they say lifetime warranty ask who's lifetime because they typically mean the 5 years the turf is going to last. You should also ask what kind of seems they are going to use, if they use the typical butt seem you will get ugly straight lines in a year or 2. Keep sand far far away from your new turf as every time someone steps on it it will shred the blades of grass. Sand is used on sand paper.