Categories Property Management

Why I will always allow pets in my rental property 

I used to be an landlord who was strict about not allowing pets. When deciding whether to allow my tenants to have pets, I used the same logic as any investor: Pets can cause damage. Pets cause more wear and tear which can negatively impact my bottom line. So, I would simply not allow pets on my property.

After 15 years in real estate, I have had a complete change of heart. No, not because of those puppy dog (human or pet) eyes! It’s not because of those puppy dog eyes (human or pet!

This article will explain the factors that have influenced me to make my rental properties pet-friendly.

Reduced Vacancy Times

Renting is a business where time is money. The longer a property remains vacant, the lower the income. According to Zillow rental search data, the majority of rentals advertise “no pet”. ( 1) This is in line with the rental search data that I have collected from my software database. Based on a sample of 61 790 units, 27 percent of rentals advertise “pets are OK” and 73 percent “no pet”. (2)

Apartments.com published a survey in 2014 that revealed the most accurate statistics on pet ownership by renters. The survey claims that 72 per cent of renters have pets. Zillow’s 2017 Consumer Housing Trends Report stated that only 32 percent renters own pets. (4)

The research shows that pet-friendly rentals are in short supply compared to renters who want pet-friendly accommodations. Allowing pets in your rental increases the appeal of your property and opens up a larger pool of tenants. This will lead to a shorter time between tenants.

Save time by reducing the amount of time you spend searching for funds to repair damage

You can charge a pet deposit in addition to the standard security deposit if your state permits it. The pet deposit can be used to clean a property or repair damage caused by the pet.

Pet deposits provide additional security, allowing you to be prepared to cover any costs associated with pet damage or excessive cleaning. You will have to bill the tenant for the additional costs of cleaning or repairs if you collect only a standard deposit. Then you will have to actively seek payment from a tenant who has left, and it may be difficult to find them or the money.

You can sue your tenant if the bill is not paid. You could also pay the bill to avoid the problem from getting worse.

You will have to spend either time or money on chasing additional payments for damages caused by pets. A larger security deposit will limit the amount of money you can ask your tenant for.

Pet Rent

Pet rent is another option to consider for pet-friendly property. Pet rent can range from $10 to $ 50 per month, and is collected with the standard monthly rent. This pet rent can increase your rental income by up to $600 over the course of an entire year.

Most tenants are willing to pay more to have their pet roommate live with them in areas where there is a low vacancy rate and fewer pet-friendly rental options. (5)

Renewal rates are increasing

Pet-friendly rentals can be harder to come by, so tenants who own pets are more likely to stay in a rental for a long time. These long-term pet-owning tenants are a great investment for investors when you include regular rent increases in your lease agreement.

Every renewal I find it necessary to conduct regular inspections. This allows you to identify any damage caused by pets or areas of concern that need to be addressed.

Related: An Emotional Peacock –Really? How to navigate the murky waters of ESAs for a landlord

Pet-Friendly Properties: Are They Legal?

Check your local and state laws regarding the legality and increase of fees and deposits. The lease should include clear information about what types of pets are allowed at the property, and any additional fees or rent that may be associated with pet-friendly rentals. It is important to have it reviewed by an attorney you trust before signing. Renter’s Insurance is also a good idea, especially if you have pet owners.

Special Note on Service Animals.

The American Disabilities Act protects your tenants with service animals and emotional support animals. You are required as a landlord to provide reasonable accommodations for renters with service animals or emotional-support animals (ESAs).

Renters who have a service dog or emotional support animal are not required to pay an additional pet deposit or pet rent. The ADA and Fair Housing Laws require that they provide documentation to prove the need for the animal.

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