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Is Landscaping a Capital Improvement?
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Is Landscaping a Capital Improvement?

Doing the work to maintain a homeowners association can be extremely rewarding, especially if you invest your time and money into ways to upgrade and improve the community. From routine maintenance to capital improvements, HOA projects never end, which is why many boards work with lenders to cover costs for more extensive investments.

Whether your project is considered HOA maintenance or a capital improvement can be an important factor when you seek financing. And sometimes it’s not always clear where your project stands – like landscaping.

Is landscaping a capital improvement for HOAs? Let’s dive in.

What Is an HOA Capital Improvement?

While maintenance is preventative and helps preserve an asset’s original condition (like how routine pool cleaning keeps the facilities in top shape), capital improvements upgrade the overall value of the property (like putting a new patio near the pool).

Here are more examples of HOA capital improvements:

  • Building an addition or new parking lot 
  • Replacing the roofing or siding
  • Rebuilding after a storm

When Is Landscaping a Capital Improvement?

If your HOA currently has landscaping and you want to hire professional services to maintain it, that would likely fall under your maintenance budget, since you are investing to keep your landscaping looking its best.

On the other hand, if you want to put in new landscaping, that is a capital improvement because it enhances your property beyond its original condition or state.

Other than planting flowers, shrubs, and other greenery, there are several landscaping capital improvements that can provide a significant return on investment for your HOA.

Installing Walkways and Trails

If you have noticed that your walkways have cracks or damage, this can decrease the value of the area. In addition, this area can become a liability due to a risk of falling from tripping on the site. Repaving walkways or installing them is a worthy capital improvement that will keep everyone on the property safer.

Expanding and Enhancing Outdoor Common Areas

If you have a spot where people regularly meet outside, you can enhance the area with various upgrades, such as:

  • Fire pits
  • Grills
  • Playgrounds
  • Outdoor LED lighting
  • Tennis or basketball courts

Making Sustainable Upgrades

With sustainability and eco-friendliness becoming a primary concern for many people, making upgrades that promote this can increase the value of your HOA.

  • Replacing plants with ones that require less water
  • Installing native landscaping
  • Utilizing “green” pest control

Make Funding Your Project Simple With HOA Capital

If you’re interested in landscaping or any other capital improvement for your HOA, it’s wise to speak to a professional who can guide you. When you work with HOA Capital, you’ll be reaping the benefits of having local, professional HOA lending partner matching services at your disposal.

We would love to help you get started, so contact us online or give us a call at 952-836-9593 today!

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