Landscaping: One of the Most Critical (and Overlooked) Financial Decisions Your HOA Will Make

By Anuj Gupta

This article first appeared in our Communicator Magazine, Summer 2025 Edition.

If you’ve been on an HOA board long enough, you know that financial conversations usually revolve around the obvious – roof replacement, paving schedules, insurance premiums, maybe even lawsuits. But there’s one line item that shows up on every budget, year after year, and yet doesn’t always get the long‐term thought it deserves: landscaping.

Most communities treat landscape maintenance as an operational expense, a necessary part of keeping things neat. What often gets missed is that land‐ scaping is actually tied to some of the biggest financial decisions your association will face – whether it’s planning for reserves, avoiding special assessments, managing liability, or keeping property values high. I’ve worked with enough HOAs over the last 10 years to see that the communities who take a long‐term, strategic view of their landscaping avoid headaches. The ones who don’t? They’re usually the ones scrambling when costs spike unexpectedly.

So, let’s talk plainly about how landscaping ties into your financial stability and what you should be thinking about – not just for next year, but for the next decade.

RESERVES: ARE YOU ACCOUNTING FOR YOUR LANDSCAPE INFRASTRUCTURE?

Most reserve studies focus on the big‐ticket, visible items – roofing, asphalt, exterior painting. But in many cases, the costliest surprises come from the parts of your property that sit right under your nose: the irrigation system, drainage, retaining walls, sidewalks, even your recreation areas and trees.

Here’s the reality – irrigation systems have a shelf life. After 30 or 40 years, it’s not a matter of if they’ll fail, but when. We often see HOAs patching up leaks or bro‐ ken valves year after year, thinking they’re saving money, when in fact, they’d be better off budgeting for a full system replacement. Same goes for cracked sidewalks, aging retaining walls, and worn‐out recreation areas like dog parks, sports courts, or BBQ areas. These aren’t small fixes when they fail. And if they’re not properly accounted for in your reserves, you’ll find yourself staring down an emergency special assessment – or worse, deferring repairs that risk safety and liability.

If your reserve preparer isn’t including these landscape‐related assets, it’s time to change that. Give them detailed information: age of systems, condition of trees, maintenance records, and timelines for renovation. Your reserve study should

reflect the reality on the ground – not just the paint on the walls.

DEVELOPER TRANSITION: BE WARY OF WHAT YOU INHERIT

I can’t tell you how many times I’ve walked onto a property right after developer transition and immediately spotted long‐term problems. The irrigation system might look new, but was it installed properly? Were the valves and mainlines sized correctly? Too often, developers install irrigation systems focused on short‐term appearance and cost savings. But poorly installed or undersized systems mean uneven water coverage, dead plants, and skyrocketing water bills down the line.

Then there’s the plant selection. Developers like to plant what looks lush for the first year – lots of high‐maintenance ornamentals, non‐native species that aren’t suited to your soil, or thirsty turf. Three to five years in, the HOA is stuck with the replacement costs, pest control, or expensive hand‐watering.

One of the first things I recommend post‐transition is a full landscape audit. Check the condition of irrigation, evaluate plant species for long‐term viability, and don’t be afraid to start budgeting for upgrades early. It’ll save you from inheriting a ticking time bomb.

TREES: MORE THAN JUST MAINTENANCE – THEY’RE LONG‐TERM ASSETS

Another area that flies under the radar until it becomes urgent is your trees. Everyone remembers to budget for annual trimming. But are you thinking long‐term about what happens when your trees age out, become hazardous, or die off?

Trees aren’t just part of the scenery; they’re an asset that, when properly cared for, adds significant value to your community. They provide shade, reduce energy costs, and increase property values. But trees have a life cycle like anything else. You should have a strategy in place:

• Map out your trees.
• Track species, health, and age.
• Identify which areas may need phased replacements over the next 10‐15 years.
• Allocate funds annually for new plantings.

Waiting until you’ve got dead or hazardous trees forcing emergency removals puts you in a tough spot. Plan for it now.

MODERNIZATION: BEAUTIFICATION THAT MATCHES RISING HOME VALUES

Here’s another truth: Over the last decade, home values in many communities have skyrocketed – sometimes two or three times over. But in many cases, the common areas haven’t kept pace. I’ve walked properties where homes are selling for seven figures, yet the entrance monuments are faded, the recreation areas are outdated, and the landscaping looks like it hasn’t been touched in 15 years.

This is where smart HOAs start thinking about beautification and modernization as a strategic move. It’s not just cosmetic. It protects your home values and keeps your community competitive.

Ask yourself:

• Is it time to upgrade entrance monuments with better lighting and updated plantings?
• Are recreation areas–playgrounds, dog parks, BBQ pits – due for a refresh?
• Can you replace high‐maintenance turf or aging plants with drought‐tolerant, modern landscaping?
• Should you budget to install smart irrigation controllers that adjust watering based on weather, cutting costs? These are capital investments that can be planned and phased in over years, but they make a visible difference to current homeowners and prospective buyers alike.

OPERATIONAL VS. CAPITAL: KNOW THE DIFFERENCE
A lot of HOAs struggle with how to classify landscape projects – are they operational expenses or capital improvements? That gray area can cause confusion.

Here’s a rule of thumb:

• Routine maintenance – mowing, trimming, irrigation repairs – is operational.
• Major upgrades or replacements – a full irrigation system overhaul, new playground equipment, new trees, or entryway renovations – are capital and should be funded through reserves.

Understanding this distinction helps avoid shortfalls, keeps your budget clean, and ensures fairness in assessments.

AVOIDING SPECIAL ASSESSMENTS: IT’S ALL ABOUT BEING PROACTIVE

No HOA board wants to impose emergency special assessments. And nine times out of ten, they’re triggered by things that could’ve been prevented: a

failing irrigation mainline, dangerous sidewalks from root damage, dead trees threatening property, or unsafe recreation areas.

Proactive, regular landscape inspections, combined with long‐term planning, are your insurance policy against this. It’s much easier to sell homeowners on steady, predictable dues increases and visible community improvements than one‐off emergency charges.

FINAL THOUGHT: LANDSCAPING ISN’T JUST GREENERY – IT’S A FINANCIAL STRATEGY

Here’s what I tell every HOA board: Landscaping is one of your largest visible assets. Treat it like one. Long‐term planning for landscape infrastructure, modernization, and beautification isn’t a luxury – it’s the difference between a financially stable, attractive community and one constantly playing catch‐up. ■

Anuj Gupta is the CEO and owner of Northwest Landscape, a San Jose‐based firm specializing in HOA landscape man‐ agement for over 50 years. He consults with HOA boards to align landscape planning with long‐term financial health, reserve manage‐ ment, and community property values. He can be reached at [email protected].