Here’s something most landlords miss: the backyard is often the most underutilized space on an investment property.
Everyone focuses on kitchens and bathrooms—and sure, those matter. But outdoor living space has become a genuine competitive advantage. Tenants who work from home want somewhere to escape. Families need space for kids. People want to grill, garden, and relax outside.
A thoughtfully improved backyard can be the difference between “nice place” and “I love this place.” That translates to faster leasing, higher rents, and longer tenancies.
Let me show you which improvements actually pay off.
The Simple Rule for Outdoor ROI
Before spending money on any backyard project, ask two questions:
- Does it look good? (Visual appeal)
- Can tenants actually use it? (Practical functionality)
Improvements that deliver both—aesthetic and utility—produce the best returns. A beautiful fire pit that’s actually used beats an elaborate fountain nobody cares about.
| Improvement Type | Typical Cost | ROI Potential |
|---|---|---|
| Basic landscaping | $1,000-5,000 | 100-200% |
| Deck/Patio | $5,000-25,000 | 60-80% |
| Privacy fence | $3,000-15,000 | 50-70% |
| Tree planting | $200-2,000 | 50-100% |
| Fire pit | $500-2,000 | 50-75% |
Notice basic landscaping tops the list. That’s not an accident.
The Highest-ROI Improvement: Basic Landscaping
Nothing transforms a tired backyard faster or cheaper than basic landscaping.
Defined flower beds. Fresh mulch. A few shrubs. Some perennials. Maybe decorative edging. You can achieve dramatic improvement for $1,000-2,000 in materials and a weekend of work.
Why it works:
- Instant visual impact
- Minimal ongoing maintenance (if you choose the right plants)
- Photographs well for listings
- Makes the whole property feel more cared-for
Choose native plants adapted to your climate. They need less water, survive winter better, and generally thrive with minimal attention. Low-maintenance is the goal—not elaborate gardens requiring constant care.
Decks and Patios: The Foundation of Outdoor Living
If your property doesn’t have usable outdoor living space, adding a deck or patio is probably your best investment.
These structures extend living space beyond the home’s walls. They create areas for dining, relaxing, entertaining. A well-designed outdoor space becomes a room that tenants actually use—not just lawn they look at through windows.
For existing decks:
- Inspect for rot, warping, and loose railings
- Power wash and refinish—often produces dramatic improvement
- Verify handrails meet current code
- Fix problems before they become safety hazards
For new decks/patios:
- Don’t overwhelm the yard (generally no more than 1/5 of total space)
- Match materials to property class (composite for higher-end, pressure-treated lumber for rentals)
- Get permits—this protects you when selling
- Hire licensed contractors for anything structural
A functional outdoor living space can justify $50-100/month in rent premium. On a $10,000 deck, that’s 6-12% annual return on the improvement.
Privacy Fencing: More Valuable Than You Think
Privacy is something tenants want but rarely articulate until they don’t have it.
A good fence transforms outdoor space from display area to living area. Without privacy, many tenants avoid their backyards entirely—too exposed, too uncomfortable. With privacy, the same space becomes genuinely usable.
Practical benefits of fencing:
- Contains kids and pets safely
- Enables relaxed outdoor use
- Reduces noise from neighbors
- Creates defined property boundaries
Before you build:
- Get a survey to verify property lines (fencing disputes are expensive)
- Check local regulations for height limits and setback requirements
- Talk to neighbors about splitting costs (often successful)
- Choose materials appropriate to neighborhood standards
For families with kids or dog owners, a fenced yard often moves from “nice to have” to “must have.” You’re not just improving the property—you’re expanding your tenant pool.
Trees: The Long Game
Trees are unique investments because they appreciate over time.
A mature tree can add 10-15% to property value compared to identical properties without trees. The tree you plant today becomes more valuable every year you own the property.
What trees provide:
- Shade that reduces cooling costs
- Privacy screening
- Habitat for birds (tenants like watching wildlife)
- Neighborhood character
Before planting:
- Contact your provincial Click Before You Dig / one-call centre to mark underground utilities
- Consider mature size—don’t plant where it’ll hit the house or power lines
- Choose species appropriate to your climate
- Plant away from foundations and sewer lines
Trees take years to mature. This is a strategy for properties you’ll hold long-term. But for long-term holds, few improvements deliver better value.
Fire Pits: High Impact, Low Cost
Fire pits have become one of the most popular backyard features—and they’re surprisingly affordable.
For under $2,000, you can install a fire pit that becomes a gathering space for three seasons of the year. Tenants love them. They photograph well. They make backyards feel like destinations rather than empty space.
Before adding a fire pit:
- Check local ordinances (some areas restrict open flames)
- Ensure adequate clearance from structures and trees
- Consider propane or natural gas options for easier regulation
- Provide basic seating to encourage use
Fire pits work best in cooler climates where outdoor heating extends the usable season. In hot climates, other features may provide more value.
What to Avoid
Not every backyard improvement makes sense for investment properties.
Skip these:
- Swimming pools (liability, maintenance, insurance nightmares)
- Elaborate water features (high maintenance, low practical use)
- Highly personalized theme gardens
- Permanent sports installations
- Anything requiring constant professional maintenance
These features cost money without proportional returns. Worse, they often create ongoing headaches that drain your time and budget.
The Staging Effect
Here’s something subtle: backyard improvements affect how tenants perceive the entire property.
A well-maintained backyard signals that the property is cared for throughout. Prospects touring a property with a nice outdoor space arrive at the interior with positive expectations already established. The halo effect is real.
Conversely, a neglected backyard creates concern. “If they don’t maintain this, what else are they neglecting?”
Basic backyard maintenance isn’t just about outdoor space—it’s about the message your property sends.
Frequently Asked Questions
What backyard improvement offers the best ROI?
Should I improve the backyard before finding tenants?
How do I maintain backyard improvements with tenants responsible for yard care?
What backyard improvements should I avoid?
How much rent premium can a well-built deck or patio justify?
Are privacy fences worth the investment for rental properties?
What low-maintenance plants work best for rental property landscaping?
The Bottom Line
Ready to explore your financing options? Book a free strategy call with LendCity and let our team help you find the right path forward.
Backyard improvements represent overlooked opportunities for property differentiation and value creation.
Start with basic landscaping—it’s the highest-ROI option for almost any property. Add decks or patios when you need functional outdoor space. Install privacy fencing when target tenants (families, pet owners) need it. Consider fire pits for high-impact, low-cost amenity additions.
Match improvements to your property class, neighborhood standards, and target tenant preferences. Over-improving relative to your market wastes money. Under-improving leaves value on the table.
The backyard isn’t just grass to mow. It’s potentially your property’s most valuable feature—if you treat it that way.
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage. Content on this page is for educational purposes only and does not constitute legal, tax, investment, securities, or financial-planning advice. Rates, premiums, program terms, and regulations referenced are as of the page's last updated date and are subject to change. Any investment returns, rental yields, tax savings, or case-study figures shown are illustrative only — they are not guaranteed, not typical, and individual results will vary. Consult a licensed lawyer, Chartered Professional Accountant, or registered dealer before acting on any information above. Editorial standards.
Written by
LendCity
Published
August 7, 2026
Reading time
6 min read
Contractor
A licensed professional hired to perform construction, renovation, or repair work on investment properties. Using licensed and insured contractors is essential for permitted work, as unlicensed contractors can result in voided insurance, property liens, and liability for injuries.
Foundation
The structural base of a building that transfers loads to the ground. Foundation issues such as cracks, settling, or water intrusion are among the most expensive repairs in real estate and can significantly impact property value and financing eligibility.
IRD
Interest Rate Differential - a mortgage penalty calculation based on the difference between your rate and current rates for the remaining term.
NOI
Net Operating Income - the total income a property generates minus all operating expenses, but before mortgage payments and income taxes. Calculated as gross rental income minus [vacancies](/glossary/#vacancy-rate), property taxes, insurance, maintenance, and property management fees. NOI is used to calculate both [Cap Rate](/glossary/#cap-rate) and [DSCR](/glossary/#dscr).
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Return on Investment - a measure of profitability calculated by dividing net profit by total investment. Used to compare the efficiency of different investments.
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Short-Term Rental - a furnished property rented for periods of less than 30 days, typically through platforms like Airbnb or VRBO. STRs can generate 2-3x the income of long-term rentals but require more active management, higher operating costs, and compliance with local short-term rental regulations.
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