Welcome to the Marterra Properties blog—your Orange County Property Manager! In our blog entries we will present some case studies, discuss current events that are relevant to real estate investment, design trends and other various topics of interest. Today’s blog entry will discuss creating value for our property management clients through a landscape renovation.
Today, we will discuss a landscaping renovation for a landlord at an apartment community in Costa Mesa, CA, also known as “Costamazing“. Upon taking over the management of this complex we conducted a SWOT (Strength/Weaknesses/Opportunities/Threats) analysis. This analysis to helped define us our strategy for the property. When the property management turned over to Marterra Properties, it was a rather large eyesore. Situated on a corner lot within a Costa Mesa neighborhood, this 6-plex had plenty of deferred maintenance.
During our SWOT analysis, we identified several areas of opportunity. One area of opportunity that surprised us was the monthly water bill. The bill just for water was over $460 per month or 10% of the total operating expenses. Not to mention, the landscaping was very dated and very unattractive. We came up with a landscaping design that featured decomposed granite, water saving succulents and artificial turf. Before and after photos are below.
The landscaping renovation cost a total of $12,000. It created a monthly water savings of +$200/month and a $20/month savings in landscaping maintenance. That is an annual return on investment of 22% for the landlord. The landscaping is frequently complimented by tenants and neighbors. In addition to the savings, this remodeling process improved the properties curb appeal. Besides the financial merits, the renovation is great for the environment, as water usage for the property was cut in half.
The image below shows the water usage at the property for the 11-months after we completed the project. The water usage dropped dramatically from July of 2016 to July of 2017. The water usage in the month of July 2016 was typical for the property prior to the renovation.
We take pride in creating value for our property management clients. Contact us today to see how we can create value for you.