Rental Property Investor · Charlotte, NC · Member since 2014 · 24 posts · 6 votes
How much does a potential renter care about the appearance of the front lawn? We are looking at a property in a middle class neighborhood in Charlotte, NC, and the front yard has just been seeded and covered in straw. None of the other yards are pristine, beautifully maintained show pieces either. The house is empty, so no one is there to water it. The inside has been completely updated. New laminate floors and carpet, and new SS appliances and granite in the kitchens and baths. Really nice house! So would the lawn be a deal breaker in your opinion/ experience? My husband and I differ on this. He is worried that the yard will scare away all of our potential renters. Has this ever been an issue for you? Also, what about the maintenance? Can we expect them to water it? Would it be strange for us to ask them to take care of it? Should we get a service to take care of it until the grass is better established?
Here are some photos of what it looks like. Would this concern you? Would you feel confident you could rent it out?
This is a real problem here. Water is EXPENSIVE. Some tenants would like to have a nice, lush, green yard, but they have to pay for the water. Denver isn't too expensive, though even there the bills would shock you folks who are in wetter climates. Wheat Ridge, which buys its water from Denver is more expensive. Aurora (biggest city in Colorado) is really expensive. 6000-7000 gallons a month at a small house I have there runs about $80 a month. If they tried to water the grass, it could easily run $200 a month. So, yeah, tenants don't really deal with the grass. I've had one lady tell me "you should be ashamed of that yard". I'm not. We live in a desert and you want a lush yard? Its going to cost you big time. Most tenants don't care.
I think it should be included on your water bill:
Believe it or not, you live in the high desert! Yes, the plains of Colorful Colorado is really a dry high altitude desert! Oh, and 'lawns' were first used to showcase massive wealth by landbarons, who would just show off they could do whatever the hell they wanted with their land and they didnt have to plant crops to survive. Think about that before you cultivate your nice manicured lawn that eats into our drinking water resources.
Isnt it about time for each lawn to be watered using non-potable water? We put drinking water in the ground to feed plants that have no benefit other than keeping up with your neighbors....
Real Estate Broker · New York, NY · Member since 2014 · 140 posts · 58 votes
11y
Hi Dawn,
I think the yard will definitely scare off some potential renters, but I would hope it wouldn't effect your bottom line. But who knows...
I personally would try to clean it up as best as I could (so it at least is in par with your neighbors). Not only will this presumably attract more renters (or turn off fewer renters), but it will also set a good expectation for what you expect the tenant should maintain.
You should be a little worried about signing a lease during an off-season month. Best months to rent are typically May-September because you can charge premium rent. During off-season months you will probably have to rent for less.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
11y
This is a temporary situation. Let prospective renters know that. I doubt it will scare anyone off. We live in a rainy climate and let lawns brown in summer because we know they will green up again after the first substantial rain. For lawn maintenance, just be sure to have a section in your rental agreement that clarifies the level of care required and who is responsible for the care. I would not hesitate to buy the house if everything else checks out.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
This is a real problem here. Water is EXPENSIVE. Some tenants would like to have a nice, lush, green yard, but they have to pay for the water. Denver isn't too expensive, though even there the bills would shock you folks who are in wetter climates. Wheat Ridge, which buys its water from Denver is more expensive. Aurora (biggest city in Colorado) is really expensive. 6000-7000 gallons a month at a small house I have there runs about $80 a month. If they tried to water the grass, it could easily run $200 a month. So, yeah, tenants don't really deal with the grass. I've had one lady tell me "you should be ashamed of that yard". I'm not. We live in a desert and you want a lush yard? Its going to cost you big time. Most tenants don't care.
This is a real problem here. Water is EXPENSIVE. Some tenants would like to have a nice, lush, green yard, but they have to pay for the water. Denver isn't too expensive, though even there the bills would shock you folks who are in wetter climates. Wheat Ridge, which buys its water from Denver is more expensive. Aurora (biggest city in Colorado) is really expensive. 6000-7000 gallons a month at a small house I have there runs about $80 a month. If they tried to water the grass, it could easily run $200 a month. So, yeah, tenants don't really deal with the grass. I've had one lady tell me "you should be ashamed of that yard". I'm not. We live in a desert and you want a lush yard? Its going to cost you big time. Most tenants don't care.
I think it should be included on your water bill:
Believe it or not, you live in the high desert! Yes, the plains of Colorful Colorado is really a dry high altitude desert! Oh, and 'lawns' were first used to showcase massive wealth by landbarons, who would just show off they could do whatever the hell they wanted with their land and they didnt have to plant crops to survive. Think about that before you cultivate your nice manicured lawn that eats into our drinking water resources.
Isnt it about time for each lawn to be watered using non-potable water? We put drinking water in the ground to feed plants that have no benefit other than keeping up with your neighbors....
Project Engineer · Littleton, CO · Member since 2014 · 80 posts · 17 votes
11y
@Anson Young I couldn't agree more. We live in an arid climate yet some people insist on having lush green yards to keep up with their neighbors. It's ridiculous. Non-potable water would make so complete sense so.......it probably won't happen any time soon.
Back to the original post, I doubt most tenants would care at all about the lawn outside. Do your best to clean it up but other than that you should be good to go.
Real Estate Investor · Aurora, CO · Member since 2014 · 4 posts · 1 vote
11y
Yeah I had a client that was paying $200 out of his pocket. In the renewal lease he did not include the water if it's a house you can do that but when they leave and leave a bill owner may still be held responsible so it's important that tenant put water bill in their name
Real Estate Investor · Central, TX · Member since 2012 · 479 posts · 165 votes
11y
If I were a prospective tenant, I would be more concerned with the roof. It looks to be at the end of its life. As a tenant, if I want green grass I will water the yard; if I don't care about the yard, I wont.
But I can't improve the roof by watering it. That's an expensive repair and one I wouldn't want to deal with while I was living there; especially considering if a leak were to happen or if the owner did not have sufficient funds to replace it.
Rental Property Investor · Morgan Hill, CA · Member since 2012 · 212 posts · 64 votes
11y
I have put a note in the listing stating anything that will be changed prior to move in or just after move in (and yes I back it up in writing in the lease so everyone is clear on expectations). While it might limit the interested applicants this time around if everything else is good then I would continue with the purchase.
I have lawn/garden service included with the rent and if it needs to be watered beyond the initial seeding then I would put in a sprinkler and have the garden service be responsible for maintenance. Battling with renters over expectations on gardening (at least in my markets) is an unnecessary headache. The amount of water needed can be calculated and stated as an expectation in the lease. Meters are cheap if anyone wants to verify it.
This is a real problem here. Water is EXPENSIVE. Some tenants would like to have a nice, lush, green yard, but they have to pay for the water. Denver isn't too expensive, though even there the bills would shock you folks who are in wetter climates. Wheat Ridge, which buys its water from Denver is more expensive. Aurora (biggest city in Colorado) is really expensive. 6000-7000 gallons a month at a small house I have there runs about $80 a month. If they tried to water the grass, it could easily run $200 a month. So, yeah, tenants don't really deal with the grass. I've had one lady tell me "you should be ashamed of that yard". I'm not. We live in a desert and you want a lush yard? Its going to cost you big time. Most tenants don't care.
I think it should be included on your water bill:
Believe it or not, you live in the high desert! Yes, the plains of Colorful Colorado is really a dry high altitude desert! Oh, and 'lawns' were first used to showcase massive wealth by landbarons, who would just show off they could do whatever the hell they wanted with their land and they didnt have to plant crops to survive. Think about that before you cultivate your nice manicured lawn that eats into our drinking water resources.
Isnt it about time for each lawn to be watered using non-potable water? We put drinking water in the ground to feed plants that have no benefit other than keeping up with your neighbors....
*rant over*
Or keeping up with your HOA's guidelines! We got quite a bit of rain in the early summer last year here in SE Aurora, so I turned my sprinklers off...and didn't turn them on the rest of the summer. Sure, I didn't have the greenest yard out there and although I was expecting a notice on my door from our HOA, I never got one so we'll see how it goes this summer!
Real Estate Investor · Aurora, CO · Member since 2014 · 240 posts · 109 votes
11y
@Dawn Roof as others above have mentioned, I don't think it will scare many prospective tenants off. If it does, then maybe that tells you that those tenants just might be more difficult to deal with than those that don't care much about the appearance of the yard.
Herndon, VA · Member since 2014 · 1k+ posts · 324 votes
11y
Is this a potential purchase or a house you bought/have under contract?
Here is how I would handle it. Deduct the cost of replacing with sod from the offer price(in addition to any other repairs).
I would also push back closing as long as possible to rent into a more desirable market, also maybe the grass will have grown back.
If you end up with the property as-is, I would try a couple weeks with the current condition, then try a significant reduction. If it doesn't rent at a good price at a reasonable amount of time, I would consider the yard a serious issue. Immediate options would be mulch or hardscape.
Rental Property Investor · Charlotte, NC · Member since 2014 · 24 posts · 6 votes
11y
Thanks everyone so much for the input! We have not purchased this home yet, but I really like it a lot. My husband is dragging his feet, and I'm not sure why. I think he is using the lawn as something to keep us from actually pulling the trigger. This would be our first investment property purchase, and it is a big, scary deal for sure. Anyone have any thoughts on how to get him over the "Oh my god are we actually going to do this?" stage?? The house is really in good shape, and it should get around $325/month cash flow. Any articles or other posts you could point me to? Thanks again!!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
@Dawn Roof give us the numbers and we can take a stab at estimating cash flow. If that $325 number is rent - PITI, then you're seriously overestimating cash flow. Very common error for new investors. If using a PM, a better cash flow estimate is (rent*50%) - P&I. If you're self managing, use (rent * 64%) - P&I. Or (for self managed) the banks formula of (rent * 75%) - PITI.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
Looks like a nice little house, it should rent.
Spray the sand and dirt green, they do that in AZ.
There's no additional charge for lawn care!
Sell the feature of having a sandlot volleyball court.
Tell them it's ready to be tilled for their vegetable garden.
Tell them pets are okay outside.
Tell them the neighbor stole your sod, a simple furniture arrangement and they can look next door.
They can park 3 pickups in that yard easy!
In the summer, they can have great parties with mud wrestling!
Seriously, it will rent, yes it will be some work. If you haven't bought the place yet and you are financing any part of the deal, the lender will probably require a yard to be put in. They or you should escrow 1 1/2 times the cost of the final grading, grass seed and straw if needed in the Spring. It should look similar to the neighbors yard, IMO.
Nice house for a starting investor if the numbers really work, as Jon mentioned. Good luck :)
Hello. I honestly looked at the photo and my eyes were drawn to how impressive the house looks...I mean the curb appeal is impressive.
I'm surprised that no one answerd you with, "it depends". What are the rents, how are the area schools, what are the crime rates in the area, and how many houses on this block are rentals? Any realtor should know these answers within 15 minutes. The house is turnkey by your description. Try to overlook how nice it looks...this is difficult...and look purely at the numbers (we all struggle with this).
Using Minnesota logic, If you are in an area where the rents are $1500.00 a month, with tenants paying utilities, some renters might balk at the yard. But, if the average rent is $1500.00 a month, and you offer it at $1400.00 a month, the line out your door will negate it. But remember, you are assuming it cannot be fixed before renting. Once you get it, you need rental license inspections, and that can take a small amount of time, which you can use to get bids and fix it. See, "it depends".
Oh, and use that lawn to your advantage in getting the seller to help you with closing costs, or price adjustment.
Rental Property Investor · Charlotte, NC · Member since 2014 · 24 posts · 6 votes
11y
@Jon Holdman, @Jesse T.
Hi all,
My numbers are based on the SFH Rental Analysis spread sheet I downloaded from this site. I have assumed a 5% Vacancy Rate, 5% for a maintenance reserve, $700 for property tax, Insurance $784, Mortgage $501 (4.8% rate with 20% down), and there is no HOA in this neighborhood. Purchase price should be $120,000-$123,000 based on market value, and rent will be $1050. I am planning on managing it myself. It's in a great school district Elementary 10, Middle 8, High School 5. It's 3 beds, 2 baths 1126 sq ft. They put granite in the kitchen and baths, new SS appliances, new flooring throughout, new fixtures through out. There's no garage, but there is a storage shed out back, in the fenced in back yard.
Looks so good on paper, right??
PS Not sure why my @mentions aren't working. I don't get a drop down box with names when I start typing them. :(
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
11y
If the front lawn has already been seeded then you will probably have a lawn showing by the time you close escrow. Don't sweat it, just make sure the numbers work.
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
11y
I wouldn't worry about it, but I would realize that the lawn may never come in because it may never get the care and attention it needs to thrive. Our tenants can be very hard on lawns.
When you market the unit, mention that the lawn has been seeded and will soon look great with watering. This lets them know you care to fix it,t hat it should be overlooked, and plants the idea that it will need some work to get to the end result. When showing the property, mention it, but focus on the other positive assets of the house rather than fixating on the problem.
With SFR, it is normally the occupants role to maintain the yard. Expectations should be set in the lease or rental agreement. You should do as much as you can while it is vacant to get it established, and hope the tenant will take it over at move in.