Taking Landscape Renovation Seriously

BUILDING BUSINESS. Who is the renovation buyer? While it’s impossible to generalize about all buyers, several contractors with active landscape renovation businesses noted the following characteristics:

• Less sensitive to price — Unlike new home builders, landscape renovations are not the “last man” into the budget process. Homeowners wishing to renovate generally have funds dedicated for that purpose.



• More sensitive to time — Many homeowners requesting renovation work want a specific project done by a specific deadline. This urgency can make them less willing to spend the time searching for bids.



• More “savvy” buyers — Some buyers will have multiple landscape renovations performed much like they do several inside renovations on the same or different homes. They may have already been through landscape renovation projects before and may have a greater appreciation of the time, effort and special requirements needed to do the job properly. They may also have a greater expectation of quality and professionalism from their landscape contractor.



• Many cautious buyers — Most homeowners invest in landscape renovations because they want to stay at that home. Although they have decided to renovate, they want to be sure that the contractor is the right person do to the work.



• Somewhat more “recession proof” — Many high-end landscape buying home-owners will continue to earmark home and landscape renovation funds even during economic turndowns.

CONSIDERING COSTS. The difficulty of estimating exact time and materials to be used in a renovation project may dissuade many contractors from seeking more business. Those who make renovation a major part of the business know that the unexpected developments are the nature of the work.

Van Zelst explained, “Renovation is a large part of our business — probably more than 50 percent. Profitability depends on how the jobs are estimated. They’re harder to bid because we sometimes find things we don’t know are there. We’ve found a buried car, foundations and even mastodon bones on properties.

“The typical client is concerned with cost,” he added. “We have a responsibility for everything, to coordinate the job and work with the different trades. They’re concerned that the end result adds value to their home. It’s a significant investment, and they want a good result.”

Renovation has developed into a dedicated division at Smallwood Design Group, according to Drummond. Initially, crew supervisors were responsible for developing small renovation projects, but with the addition of a full-time landscape designer as salesman and manager, the new enhancements division has grown to represent $650,000 of revenues.

“It’s our most profitable division,” Drummond noted. “Many clients need the work completed in a hurry, so they have no time to bid it out. They’re less sensitive to price.” The division operates with one dedicated manager and one dedicated crew.

The arrangement allows Smallwood Design Group to perform up to 50 smaller renovation projects per month, compared to the capacity to do less than 10 major estate projects at a time. “We see this as one of our major growth areas,” he noted.

LANDSCAPE AS AN ACCESSORY. While many renovation projects represent only limited amounts of profits, some seem to continue from year to year, building a long-term relationship between the homeowner and the contractor. In many cases, this becomes a regular source of income as a client perceives the landscape to be a work in progress.

“Just as it is where interior styles and colors change, people want to change plantings and make other modifications to their landscapes,” noted Goodrum. “People want to bring their landscapes up to date — to accessorize it.”

How are people “accessorizing” existing landscapes? Favorites are annual and perennial color, specialty gardens and environments that reach more than the eye.

“What’s hot right now are music gardens,” noted Frank. “Disney did it 25 years ago and so did several high-end hotels. Now, we’re seeing these in commercial and residential gardens. They tie into the home entertainment system and run off an amplifier. A cable connects to speakers that are appropriate for the setting (such as speaker rocks or other exterior rated speakers). Some speakers can even be placed by an irrigation head and have excellent quality.”

He noted that clients appreciate landscapes that project an ambience. Sight and sound together “can create an ambience of ‘let’s party,’ ‘let’s reflect,’ or ‘let’s relax,’” Frank said. Kitchen gardens and medicinal gardens are also popular renovation projects, adding other dimensions to the senses a landscape design can reach.

“What we’re doing is adding value through knowledge and therefore appealing in new ways to people with old plants (such as herbs and medicinal plants),” he said.

COMMERCIAL PACKAGES. Landscape renovations continue at a healthy pace as commercial property owners and corporations eager to make a good public impression invest in site upgrades. According to Frank, “Topical is trendy. We’re seeing additions of employee rest areas such as patios, terraces, basketball courts and even jogging trails. Employers are finding that healthy people do more work.

“When I’m checking a site, I’m amazed at how much these features are used by employees. The staffs are going outside and having meetings there — using the outdoor space for their work,” Frank noted.

Frank also explained he has a healthy, ongoing business in developing sign installations on commercial properties. “New signs usually mean flagpoles and some plantings. Color is really big, and the commercial managers want it, but they’re getting tired of annuals because of their higher cost and higher maintenance. We’re using more perennials and ornamental grasses in extensive, elaborate plantings. We want the plantings to support the sign, not compete with it. The sign should say ‘Welcome.’”

Frank asserted, “If companies are making money, they’ll spend it on renovating their landscape — it’s something they don’t have to do.”

Hans Bleinberger, division manager — residential, Chapel Valley Landscape Co. in Woodbine, Md., sees some concentration on certain niches of commercial renovation work, especially with landscape architecture firms. “We’ve done some commercial renovations in the health care area, such as replacing existing landscape elements. A new trend is using sensory gardens or other landscapes intended for horticultural therapy.”

He continued, “There are some landscape architecture firms that specialize in the health care niche and prospect to health care providers.” In this case, firms rely on their knowledge of the science of horticulture to present benefits for the health care recipients (for instance, gardens for the elderly at nursing homes).

Aside from being astute about the market’s needs, landscape contractors involved in renovation need to consider one other thing, Bleinberger pointed out.

“The landscape industry as it exists today is only about 30 years old,” he said, “while many of the homes we visit can be more than 200 years old.” Buyers are more knowledgeable and want sophisticated designs blending the style of two centuries ago with the stylish plants of today.