Part of being a pet owner is dealing with how labor intensive it can be to care for them. If you ever miss a day or two of cleanup, the mess can get out of control quickly. Oftentimes, when somebody decides to rent out one of their properties, their first instinct is not to allow pets in the rental. They don’t trust their tenants to properly care for the pets nor clean up after them. They worry that their property value will decline due to the damage done through having pets living there. These feelings are often justified. Scenarios definitely play out where this becomes the case. However, there are numerous reasons why it might be beneficial to actually allow pets to live in a rental property. In this blog post, we are going to discuss some of the reasons why allowing pets in a rental property might just be a good idea after all.
Increase the pool of prospective tenants for your rental
The number of rental properties that allow pets fluctuates but is generally somewhere right around 50%. Consequently, when a landlord decides not to allow pets, they are effectively negating half of all prospective renters. By allowing pets to reside in a rental property, a landlord is making their pool of potential tenants twice as big as it would be otherwise. Some studies have shown that up to 75% of renters are pet owners. Finding a pet friendly rental can be a big challenge for renters. A landlord can help them and themselves because allowing pets will greatly decrease the potential for a rental property to sit vacant for any significant amount of time.
Increase your renewal rate
When good tenants decide to move on, it usually creates a stressful situation. There is always the chance that the next tenant will not be as good or might not pay on time or take good care of the property like the previous renters did. There is also the added risk of going without a month of rent if you have any trouble finding new tenants right away. Having a pet friendly property makes for stickier renters. They know that it can be difficult to find a new rental that allows pets, and this makes them less likely to move on.
Increase your earning potential
There are a couple of ways to generate additional revenue that have become fairly common in pet friendly properties. Many landlords will charge an additional pet deposit when the renters move in. The deposit is usually nonrefundable or only partially refundable and can be used to pay for a more thorough cleaning of the property after the tenants move out. Additionally, it is also becoming a fairly common practice to charge an extra “pet rent” fee every month. It doesn’t have to be a large sum, and different markets might support different amounts. Even a $30 monthly “pet rent” charge will generate an additional $360 annually in revenues.
Increase the quality of tenants that your property is attracting
Typically, people who own pets tend to be a more responsible segment of the population. It takes a great deal of time and effort to care for pets. The goal is that these caring and responsible types of individuals will also take similar pride in caring for your property. These types of people are more likely to treat the property like a home rather than just a place to live. Despite the fact that they are typically quite responsible people, we still recommend that you perform a pet screening prior to signing the lease agreement. This can be as extensive as you decide as a property owner, but it is definitely a good idea to at least meet the animal(s) so that you have some sort of idea what you are getting into.
When you dig into the question of whether or not to allow pets, you find that there are many reasons it is actually a benefit. If you are worried about managing a pet friendly property or have questions about how to structure everything properly, don’t hesitate to call your local partner property management company PMI Key Partner.