Are Gardens in Rental Properties an Asset or Liability for Landlords?

The pandemic resulted in a shift in many things, including what renters, and buyers, viewed as a priority. It comes as no surprise that after months of lockdown, Brits re-evaluated what’s really important to them when searching for their new home. For some, it is the location, others: ease of parking, but for 32% of Brits polled post-pandemic, a garden became the most important priority.[1]

As we said, it’s not a surprise really. After being cooped up for such a long period of time, during one of the warmest years on record², who wouldn’t want to be able to lounge outside in their own garden?

It therefore makes sense that as a landlord, having a garden in your rental property means you’re off to a positive start. But is having a garden as good as it seems?

Having a functional garden can be a huge selling point for property owners and tenants alike. For renters, gardens offer a welcome escape from urban life and can improve both mental and physical well-being. For landlords, it can not only add value, but it can also make the property:

• More desirable - Having a garden can make your property significantly more desirable on the property market. Some tenants may be put off by the lack of outdoor space and will be willing to pay more.

• More profitable - A study showed that having a garden adds an average of 25% on to the rental price.³ This varies between cities. Property with gardens in Bath were able to charge 43% more rent on average making them the “most expensive gardens” in the UK.⁴

• Have better occupancy retention – Gardens can help promote tenant retention.⁵ This can be great for landlords looking to get a consistent income and avoid frequent turnover costs.

On the flip side, there will be some disadvantages for landlords in having a garden.

Cost – Ultimately, owning a garden is going to result in costing you, the landlord, more money. Whether in the original outlay cost of purchasing the property or in the maintenance and upkeep of the garden between tenants.

Time consuming – Keeping a garden presentable can require a lot of time and effort, something which some landlords may not feel they have the capacity for.

If you’re currently looking for a tenant, consider investing some time in your garden to give it a new lease of life. Sprucing it up doesn’t need to cost you an arm and leg. You don’t need to pay for a professional landscaper, simply cutting the grass and pruning hedges and flower beds ahead of any viewings can help.

If you have the budget to invest on a professional landscaper, then it may make your property more competitive and mean you can charge a higher price. Bear in mind that some tenants may not be green fingered so it might be best to opt for a low maintenance layout.

By making the outdoor space easy to maintain for your tenants, you are encouraging them to do so. If your tenant(s) view the garden as a lot of work, it may put them off. Hardy low-maintenance shrubs and flowers could prove victorious here.

Providing a shed is always useful too. You can never have too much storage and it can give you somewhere to store a lawnmower to encourage the tenant to look after the garden.

It may be worth clearly setting out in the landlord agreement which gardening responsibilities sit with which party (i.e. Landlord and tenant).

This very much depends on the tenancy agreement. Typical responsibilities for the tenants include weeding, cutting the grass or easily accessible hedges and perennials. Landlords on the other hand typically include anything the tenant may not manage to do safely such as repairing damaged walls, fences, patios etc and maintaining large trees or hedges. Some landlords may opt to hire a gardener to care for these aspects and come by a few times throughout the year.

Landlord insurance provides cover specifically for renting properties, including loss of rent cover and property portfolios. For more information visit our dedicated landlord insurance page or call us on 0344 892 1664.

This is a marketing article by Everywhen Insurance. The information contained is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such. If you wish to discuss your specific requirements, please do not hesitate to contact a Everywhen Insurance adviser.

Sources:

[1] Pandemic has made properties with gardens more attractive | YouGov

[2] A look back at the weather and climate in 2020 - Met Office

[3]The extra value a garden can add to rental yields - justlandlords.co.uk

[4] The extra value a garden can add to rental yields - justlandlords.co.uk

[5] Why functional gardens are important - landlordvision.co.uk