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

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?

Benefits of being a landlord with a rental property that has a garden

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.

Cons of being a landlord with a rental property that has a garden

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.

How to make the most of the garden in your property?

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).

Which gardening responsibilities sit with the landlord and which sit with the 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 from Towergate

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 Towergate 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 Towergate 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

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a fellow member of the Association of Accounting Technicians (AAT) and member of Association of Tax Technicians (ATT). She also has over 25 years' experience as a residential landlord.

This is a marketing article by Towergate Insurance. Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.