Wealth Finance

1. “Turns out, money does grow on trees.”

TREE CARE IS A multibillion-dollar industry, with homeowners forking over money for services ranging from pruning, tree removal and pest management to fertilization, reinforcement cabling and even lightning protection. As home prices rose between 2001 and 2006, spending on tree service more than doubled, from $3.1 billion to $7.2 billion, according to the National Gardening Association. And that doesn’t count billions more for work done for local governments and commercial clients.

More recently, say industry experts, the real estate slump has taken a big chunk out of the tree-care business. Bartlett Tree Experts, which operates in 27 states, saw its 2009 sales fall 9 percent from a year earlier, to $152 million. Peter Gerstenberger, a senior adviser at the Tree Care Industry Association, says his organization’s 2,000 member companies were also hurt by the downturn in construction, another big source of business. On the bright side, he says more people are noticing that tree care requires different skills and knowledge than landscaping or lawn care, making it an increasingly well-recognized line of work.

2. “Sometimes, less is more.”

PRUNING IS THE most common tree-care practice. But tree workers might want to go easy with the chain saws—too much can be a bad thing. For example, experts caution against cosmetic pruning, since trees depend on their limbs (even the less attractive ones) for sunlight, water and nutrients. And thinning out trees to boost air circulation—often touted as a way to protect them from being toppled during storms—doesn’t always
work, says Nelda Matheny, founder of Pleasanton, Calif., consulting firm HortScience. She thinks adult trees should be trimmed only when there is clear need, like when dead or diseased wood appears or the tree interferes with power lines or buildings.

Lucille Messina, a retired music teacher in Bucks County, Pa., would agree. A few years ago she noticed what she calls “lollipop trees” near local schools: trees whose crowns had been trimmed to look artificially round. Concerned about their health, she says, she sent a letter to every local tree service listing an address in the Yellow Pages, asking them to avoid such practices. (None fessed up to the chainsaw massacre.) “There is nothing more beautiful than an untouched tree,” says Messina.

3. “Your trees are worth only so much.”

STUDIES SHOW that attractive trees and gardens add value to homes. According to a 2007 survey by the National Association of Realtors, 32 percent of new homebuyers said professional landscaping was “very important.” Clemson University agricultural and applied economics professor Mark Henry once analyzed home sales and found that “excellent” landscaping increased the sale price
by four to five percentage points.

But homeowners shouldn’t put too much money into tree care. While sudden destruction can qualify taxpayers for a “casualty loss” deduction, the IRS considers only the overall change in the market value of the property, not how much your trees are worth. “You’re not going to get as much as you think,” says Deborah Gaddis, a forest taxation expert at Mississippi State University. Removing a damaged tree can cost hundreds, even thousands, of dollars. And while insurance policies typically pay for damage and tree removal if one hits your house, you’re on your own if “a tree just falls in the backyard and creates a big mess,” says Jeanne Salvatore, spokesperson for the Insurance Information Institute.

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