Is Landscaping a Capital Improvement?

Looking for something to improve your commercial property or grab the attention of new prospective tenants? Landscaping can help you with this problem – and not only this but also to stand out from your competitor and gain more potential customers.

Landscaping can help improve the aesthetic and functionality of a property and its resale value. Landscaping around a building or area can also impact an entire community. Landscaping is not classified as a capital improvement because it does not add to an asset but instead improves on it.

As experts in our industry, we can help you plan, design and implement the strategic changes that will give you the biggest impact and high ROI’s.

What is Capital Improvement, and How Can it be Achieved through landscaping?

The term “capital improvement” is used to describe any improvement intended to increase the value of an asset or extend its useful life. Landscaping, in this case, would likely fall under these rules.

Landscaping has long been considered a form of home improvement. Still, it has recently become much more popular with homeowners and local governments as they try to maintain their properties while providing new amenities and opportunities for their communities.

So, is landscaping a capital improvement?

Yes, landscaping can be considered a capital improvement eligible for tax credits. To qualify as an improvement, the project must either become more productive or less productive than its previous state following completion of the project. For example, if there were no irrigation system on your property before installing one, installing a new irrigation system would qualify as an improvement.

What Are Landscaping Services Considered Capital Improvements?

Landscaping can improve your capital by creating a sense of calm, beauty and welcoming home.

Renovations

Landscaping can make or break a commercial property and its value over time. While landscaping is generating revenue for the owner, it could also be causing revenue loss, especially if it’s not up to date with changes in design trends. Hence renovations are required and necessary.

The problem with these old landscaping installations is that they are not compatible with the current climate and cannot be modified easily. It is time for you to consider renovating them.

Redoing the Whole Landscape

If you consider adding a landscaping upgrade to your property, it might be worthwhile to redo it.

Redoing property landscaping increases capital value, but it also contributes to capital improvement while also improving the curb appeal, making it more appealing to potential tenants and buyers. It also adds value by creating a beautiful and functional landscape that will stand the test of time.

Hardscapes and Irrigation

Hardscape refers to non-living surface landscaping and drainage. A hardscape can be constructed through paving or using decorative urban elements such as cobblestones, bricks, and stone walls.

Irrigation refers to the delivery of water with a distribution system designed to water plants efficiently, saving time on caretaking efforts that can focus on other needs in life.

Hardscapes and irrigation can be beneficial when integrated into your capital improvement project. Hardscape brings beauty and functionality to the city, while irrigation helps develop healthy plants, trees, and grass.

A little can go a long way. We can come and evaluate your property, and give you a suggested path to best landscape with the intent of capitalizing on your investment. Contact us today and book an appointment!