Large yard: Asset or Liability?

Question

Hi there, I'm considering purchasing a SFH in mid-Michigan with a large backyard - about .25 acre.  It is fenced, but since the tenants would be responsible for the mowing and upkeep, I'm concerned that the size of the yard might make it difficult to rent.  Has anyone had trouble renting a house because the yard is too big?  Thanks for your thoughts.

Thomas S. · Answer

Most renters, especially those with kids, are generally lazy as dirt in regards to rental property maintenance. The fewer maintenance responsibilities you place on a tenant the fewer lease violations you will be required to inforce.

David Faulkner · Answer

Long term value of real estate is in the dirt, not the building that sits on the dirt. This assumes that it is well located dirt in a desirable neighborhood with a limited supply of buildable dirt. If this describes your market, then more dirt should be an asset, not a liability.

Jonathan Enriquez · Answer

I would assume that its an asset for flipping and a liability for renting.

Kim Meredith Hampton · Answer

@Jennifer Richmond try and figure out a way to include lawn care into the monthly rental amount with a lawn that large, ultimately tenants don't take care of a home like you would. Pro is that people with pets and children will love that yard! People that have no children, but are young may love to entertain. Be careful, some people will try and put in a pool or trampoline for the kids, and your insurance wont insure for that.

bottom line, include lawn care, and make sure your vendor tells you whats going on

Stanley Parsley · Answer

depending on the layout of the yard

is it usable space or is it a burden

set it up so you can use it for entertaining people love that

enjoy

Justin Tahilramani · Answer

@Jennifer Richmond - I definitely wouldn't look at it as a liability. If the property is located in an association you may consider including yard maint. in the rent.

You can definitely mow .25 acres with a push mower, but you'll get quite a workout. Most tenants probably aren't going to want to do that on a regular basis.

Renters with children or pets will appreciate a large backyard that is fenced. I'll bet it's a major consideration for families (behind safety and school district).

Scott Matthew C. · Answer

@Jennifer Richmond have your PM take care of the lawn maintenance. Include their services into you calculations. Maintenace free lawn care will handle the objections of a large lawn. It now becomes a perk for the tenants especially if they have kids or want to go on vacation.

@Fred Winer would you mind sharing where you got your report from. I'm not entirely sold on it. The reason why is their statement isn't localized or is it?

Fred Winer · Answer

"Before i did my own larger back yard i read this article found it for you again."

People are investing more in the back of their property, and the home-improvement boom is driving that engine. A study by the University of Michigan found that consumers value a landscaped home 11.3 percent higher than the same home without good landscaping.

But exactly which improvements pay off? And which ones waste your money? Here are Barbara’s picks:

Big backyard trendsLess lawnLow-maintenance vegetation saves on upkeep and time. Foot-friendly ground covers instead of turf grass compete with weeds. Deep planting beds and wide borders with low-care perennials and shrubs in the mix add interest.

More treesTrees are one of the few things that appreciate over time. Almost everything else depreciates the moment you install it. Experts say that younger is usually better when you’re planting trees, but if you’re selling within three to five years, you’ll need some size to get the full effect. The best size to buy is 8’ tall, 1-2” in diameter, sitting in a 15-gallon pot ($50-$150).

Outdoor roomsA dining area, dry laid patio, a patch of gravel, a covered patio or an above-grade deck:  According to SmartMoney.com, a landscaped patio raises the value of your home by 12.4 percent. Today’s best-selling improvement is a backyard terrace that abuts the family room. It costs anywhere from $12 to $50 per foot, depending on how fancy you want to get. Consider an oversize sandbox as a play space for your kids. Cover it with bird netting rather than plastic sheeting to keep the critters away while letting sunlight naturally sanitize the sand.

Backyard sanctuariesThe key feature is water; either a fountain ($500-$1,500), a small pond (DIY for $200; professional job costs $2,000), or a hot tub ($1,000). It could even be as simple as a terra cotta pot with a recirculating pump from the hardware store ($50). The other key feature is a comfortable place to sit and relax.

Full outdoor kitchensFrom $15,000-$100,000, they include refrigerators, grills and sinks. The fancier the brand and the bigger the size make it today’s backyard status symbol.

A ‘year-round’ yardYour yard can look leafless and drab in the winter months, but flowering shrubs, colored bark, ornamental grasses and colored berries all add color in the cold seasons. According to SmartMoney.com, hedges alone raise property values by 3.6 percent.

Landscape lightingOften called "Malibu lighting,” it runs on solar power and is easy to install. It shows off your garden at night, silhouettes your trees, keeps everyone safe from tripping and keeps burglars away.

Smart backyard tips

Make a five-year planEverything doesn’t have to happen all at once. Plantings mature at different rates, and you can add new features each year.

Test your soilThe soil is just as important as what’s going into it. You can test your soil by contacting your county agricultural agency. They’ll send back the results with instructions on what you’ll need to add to improve it.

Hire a professional landscape designerThey charge $50-$75 an hour. You can pay them for the design only and do the installation yourself.

Don’t forget an irrigation systemIf you don’t have the time or interest in watering yourself, consider an irrigation system to keep the backyard looking good. It’s expensive — at least $3,000 — but potential buyers will love it.

What not to doThe truth is that some backyard projects scare off prospective buyers. Here are the splashy additions you shouldn’t do:

Swimming pool: Your home’s crown jewel is an eyesore in the winter, needs constant chlorine monitoring in the summer and usually needs to be closed in by a fence for safety. A typical pool costs $75,000 to install, but no buyer will pay your extra $75,000 when they buy your house.

The sport court: This multipurpose area for tennis matches and basketball is seen as a huge patch of asphalt where the beautiful yard should have been.

Fruit trees: Your fragrant orchard is a magnet for rotting fruit and the flies that feed on it, and calls for constant pruning.

Built-in fire pit: This barbecue haven for alpha males is seen as a stone monstrosity. A portable barbecue would be better.

A concrete patio: The broad expanse of concrete creates a parking-lot type of yard where rain collects in puddles.

Andrew M. · Answer

As other stated I would definitely not leave it up to the tenants to care for the maintenance of the yard. Include the lawn care fees in the rent but hire a professional. The yard could be an asset, families with children would place value on having a yard. Do you allow pets? People also look for rentals with yards if they have a dog. You can charge more for pets as well, and if so be sure to increase the security deposit. Love the point someone else made about the trampoline.

Clint E. · Answer

It would attract people with dogs, so maybe you can use pet rent to offset the maintenance of the lawn.

Or if they are going to mow, make it easy to mow.  Get all the junk out of the yard (small bushes, playground, decorations, etc) so that it's easy.  Easy = more likely to get done.

Also for edging and fencing, consider using RoundUp to just kill weeds on your fence line. Spray a few times per year.

Large yard: Asset or Liability?

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