How Important Are Outdoor Spaces for Rental Properties?

In the wide world of real estate, outdoor spaces - particularly in rental markets - have evolved tremendously; once considered a mere perk, outdoor spaces have now become a pivotal factor in attracting and retaining tenants.

Of course, the trappings (literally) of the pandemic drove this trend along considerably, and it's not showing any signs of dying down; as people's lifestyles and expectations shift, the importance of these spaces in rental properties has surged, making them almost as crucial as the interior amenities.

According to a survey from the National Association of Home Builders (NAHB), 58% of residential architects, designers, and builders stated that a connection to the outdoors/nature will be a significant influence in their design choices in the coming years.

Additionally, a significant 45% of these professionals acknowledged that outdoor entertaining will also receive increased attention, further highlighting the growing trend and demand for outdoor spaces in residential properties, including rental properties.

The Growing Demand for Outdoor Spaces

The demand for outdoor spaces in rental properties has seen a remarkable upsurge in recent years - a trend driven by several factors, including increased remote work, the desire for personal wellness spaces, and a general appreciation for nature.

Particularly in urban areas, in which any green space is at a premium, having access to a private, outdoor area can significantly enhance the attractiveness of a rental property.

Impact on Mental and Physical Health

There is a growing body of research that underscores the positive impact of outdoor spaces on our mental and physical health, as access to sunlight, fresh air, and greenery can improve mood, reduce stress, and promote physical activity.

For rental tenants, having a private outdoor space in which they can unwind, exercise, or, perhaps, grow plants, can be a significant factor contributing to their overall well-being.

Enhanced Lifestyle and Social Opportunities

Photo by Roberto Nickson on Unsplash

Outdoor spaces in rental properties also provide tenants with additional living and entertaining areas. These spaces are prime real estate - highly desirable for hosting gatherings, enjoying meals outdoors, or simply having a quiet spot to read or relax - perhaps in a hot tub gazebo.

Furthermore, in properties with communal outdoor areas, these spaces can foster a sense of community among residents, enhancing the overall living experience.

Marketability and Competitive Edge

From a landlord's perspective, outdoor spaces can be a key differentiator in a competitive rental market. Properties with well-designed and maintained outdoor areas tend to attract notably more interest, which tends to translate into higher occupancy rates, and, potentially, higher rental prices; the presence of a balcony, terrace, garden, or shared outdoor amenities is often a decisive factor for prospective tenants in this post-pandemic market.

Maximizing Tenant Satisfaction

To efficiently manage outdoor spaces and other features of rental properties, landlords increasingly rely on the best rental property management software; these cutting-edge technology solutions streamline maintenance scheduling, tenant communication, and overall property management, ensuring that the outdoor spaces that have been invested in continue to contribute positively to tenant satisfaction and property value.

Sustainability and Environmental Considerations

Outdoor spaces also present an opportunity for landlords and developers to incorporate sustainable practices. This includes rainwater harvesting, energy-efficient outdoor lighting, and the use of native plants that require less maintenance and water; such features not only contribute to the environmental sustainability of a property but also appeal to environmentally conscious tenants, of which the pool is rapidly growing.

The Pandemic Effect

The COVID-19 pandemic certainly further amplified the importance of outdoor spaces in rental properties. The lockdowns and social distancing restrictions that are now fading in our recollections, left behind a legacy of increased value being placed upon home comforts; tenants have increasingly valued having a private or shared outdoor area as an extension of their living space since COVID-19. Outdoor spaces are not just a luxury but a necessity for many, especially in densely populated urban settings.

Return on Investment

Investing in outdoor spaces can yield significant returns for property owners; while there is an upfront cost involved in creating or improving these spaces, the long-term benefits in terms of tenant satisfaction, property value appreciation, and rental income can be substantial. Moreover, well-designed outdoor spaces can result in highly functional spaces that require minimal upkeep, making them a particularly cost-effective investment in the long term.

Challenges and Considerations

Despite their advantages, outdoor spaces do present certain challenges, such as maintenance, privacy concerns, and ensuring that these areas are safe and accessible; additionally, in urban environments, creating outdoor spaces can be challenging due to space constraints and regulatory hurdles. Landlords must balance the cost of upkeep with the benefits these spaces offer.

Enhanced Livability

Outdoor spaces have become a critical aspect of rental properties, offering up a myriad of benefits to both tenants and landlords; they enhance the livability and appeal of properties, contribute to the health and well-being of residents, and provide a competitive edge in the market. 

Boosting Value and Desirability 

As the demand for improved outdoor spaces continues to grow, their role in shaping the future of rental housing cannot be understated. Landlords and developers who recognize and invest in quality outdoor spaces will likely positively impact their properties' value and desirability.