What Is Xeriscaping?
Xeriscaping replaces traditional lawns and water-hungry plantings with native grasses, succulents, rock features, mulch, and drip irrigation systems designed for your specific climate. For landlords, the appeal is straightforward: outdoor water use drops 50-75%, annual landscaping maintenance decreases, and operating costs go down — all of which improve your NOI. The upfront cost is higher than laying sod, but the payback through water savings alone is typically 2-5 years, with reduced ongoing maintenance as a bonus.
Xeriscaping is a landscaping approach that uses drought-tolerant plants, efficient irrigation, and soil management to dramatically reduce water consumption and maintenance costs on rental properties.
At a Glance
- Reduces outdoor water consumption by 50-75% compared to traditional landscaping
- Annual water bill savings of $200-500 per property depending on climate and lot size
- Initial conversion cost: $3-15 per square foot versus $1-5 for traditional sod
- Many western cities offer rebates of $1-3 per square foot for turf removal
- Seven core principles: planning, soil improvement, efficient irrigation, appropriate plants, mulch, turf alternatives, and maintenance
How It Works
Xeriscaping follows seven principles that work together to minimize water use while maintaining attractive landscaping.
First, you plan the layout by mapping sun exposure, drainage patterns, and existing irrigation. Group plants by water needs so you are not overwatering drought-tolerant plants to keep thirsty ones alive. Second, you improve the soil — adding comite or organic matter helps retain moisture so roots absorb water before it drains away.
Third, install efficient irrigation. Drip systems deliver water directly to root zones instead of spraying it into the air where 30-50% evaporates. Smart controllers with rain sensors prevent watering during storms. Fourth, choose plants appropriate for your climate zone — native species and adapted varieties that thrive on natural rainfall with minimal supplemental irrigation.
Fifth, apply 3-4 inches of mulch around plantings. Mulch suppresses weeds, retains moisture, and regulates soil temperature. Sixth, reduce or eliminate traditional turf. If you keep some grass, use drought-tolerant varieties like buffalo grass or blue grama rather than Kentucky bluegrass. Seventh, maintain the system — adjust irrigation seasonally, replace mulch annually, and prune as needed.
The book notes in Chapter 13 that curb appeal is a priority for property value, while Chapter 10 acknowledges that "extensive landscaping might be less impactful depending on local preferences." Modern xeriscaping addresses both points: it looks intentional and attractive while requiring far less ongoing effort than a traditional lawn.
Real-World Example
Derek owns a 4-unit property in Phoenix with a 2,400-square-foot front and side yard of bermudagrass. His monthly water bill averages $280 during summer ($180 of which is irrigation). He converts to xeriscaping:
- Turf removal: 2,400 sq ft × $2 contractor removal = $4,800
- City of Phoenix rebate: 2,400 sq ft × $2/sq ft = -$4,800 (covers removal cost entirely)
- Xeriscape installation: 2,400 sq ft × $8/sq ft = $19,200
- Drip irrigation system: $2,200
- Total out-of-pocket after rebate: $21,400
After conversion, his summer water bill drops to $95/month. Annual water savings: approximately $1,100. Annual mowing and fertilizer savings: approximately $600. Total annual savings: $1,700.
Payback period: $21,400 / $1,700 = 12.6 years on savings alone. However, the property appraises $8,000 higher at the next refinance because the landscaping is newer, lower-maintenance, and appropriate for the climate — bringing effective payback closer to 8 years. His NOI improves by $1,700 annually going forward.
Pros & Cons
- Cuts outdoor water use 50-75%, directly reducing one of the largest variable operating costs in arid markets
- Lower ongoing maintenance — no weekly mowing, less fertilizer, fewer seasonal replantings
- Municipal rebates in many western cities offset a significant portion of conversion costs
- Improves NOI by reducing expenses without touching rents
- Resilient to water restrictions and drought — your property keeps looking good when neighbors' lawns turn brown
- Higher upfront cost than traditional landscaping — $3-15 per square foot versus $1-5 for sod
- Tenant perception varies — some tenants prefer traditional green lawns and may view xeriscaping as barren or cheap
- Not impactful in every market — properties in the Southeast or Northeast with abundant rainfall see less cost benefit
- Requires design knowledge — poorly executed xeriscaping (just rocks and gravel) looks neglected and can hurt curb appeal
- HOA restrictions may limit or prohibit xeriscaping in some subdivisions, though laws in several states now override HOA turf mandates
Watch Out
The biggest mistake landlords make with xeriscaping is treating it as "just remove the grass and put down rocks." A gravel yard with no plants, no mulch, and no design looks abandoned — not water-wise. Proper xeriscaping includes intentional plant selection, layered heights, color variety, and hardscape features. Budget for professional design if you do not have experience, especially on properties where curb appeal affects rent and vacancy.
Check your municipality's rebate programs before starting — many have application deadlines, pre-approval requirements, or specific turf removal methods. Phoenix, Las Vegas, Denver, and Los Angeles all offer $1-3 per square foot, but the programs change annually and some have funding caps.
If you have tenants in place, communicate the project clearly. Temporary landscaping disruption can cause complaints or move-outs if tenants think the property is being neglected. Frame it as an improvement — lower water costs that you may pass through as lower utility expenses if tenants pay water directly.
Ask an Investor
The Takeaway
Xeriscaping is a smart capital improvement for landlords in water-expensive or drought-prone markets. The upfront cost is real, but the combination of water savings, reduced maintenance, potential rebates, and improved property value makes it one of the few landscaping investments that actually shows up in your NOI. It is not right for every market or every property, but where water costs are a meaningful operating expense, xeriscaping pays for itself.