As a rental property owner or real estate investor, you’re always looking for ways to increase revenue, attract high-quality tenants, and reduce vacancies. While you might have concerns about the potential downsides of allowing pets, the data supports the idea that adopting a pet-friendly policy can yield significant benefits for your rental properties.
The Growing Demand for Pet-Friendly Rentals
In recent years, pet ownership has surged in the U.S., with 77% of tenants either owning pets or wanting to have them. This trend has only grown stronger, especially with the changes brought on by the pandemic. While some property owners remain hesitant about allowing pets, it's essential to recognize that pet-friendly rentals are in high demand. Studies show that 65% of tenants already have pets, and another 35% would adopt one if they were allowed.
By not allowing pets, you are essentially closing your rental doors to a huge portion of the tenant pool. If 77% of tenants are asking for the ability to have pets, why limit your potential market? If a feature like a pet-friendly policy was requested by such a large group, would you consider offering it? The simple answer is yes, and here’s why.
Pet-Friendly Policies Lead to Reduced Vacancy Rates and Increased Rent
As a property owner, reducing vacancies is one of your top priorities. Allowing pets can directly contribute to this goal. Research shows that homes that allow pets rent out 10 days faster on average than properties that do not. This faster turnaround means less time sitting on the market and more revenue coming in sooner. Additionally, vacancy rates for pet-restricted properties are 4% higher than for pet-friendly rentals.
By allowing pets, you can ensure your property is rented out more quickly, and even with slightly higher turnover, the overall rental income can still be higher in the long run. For every day a property is vacant, you're losing potential income. So, adopting a pet-friendly policy can help you avoid these unnecessary costs.
Pet-Friendly Rentals Are More Likely to Have Long-Term Tenants
One of the biggest advantages of allowing pets is tenant retention. Tenants with pets often stay longer in properties that accommodate them. On average, these tenants tend to renew their leases at a higher rate than non-pet owners, resulting in lower turnover rates. In fact, some studies suggest that pet-friendly tenants could stay up to 12 months longer than those without pets.
This long-term tenancy is especially valuable for property owners, as it reduces the frequent costs associated with finding new tenants - such as advertising, cleaning, and property repairs. A tenant who stays longer is more likely to maintain your property well, reducing the frequency and cost of repairs.
The Financial Upside of Allowing Pets
Many property owners assume that pets will cause significant damage to their rental properties, but the reality is often less dramatic than anticipated. Tenants with pets typically cause only about $40 to $150 more in damage than tenants without pets. Considering the increased rent from allowing pets and the additional revenue from pet fees, the benefits far outweigh the risks.
Charging pet fees or pet deposits can significantly boost your rental income. Pet fees typically range from $200 to $500, depending on the type and size of the property. Additionally, some owners charge monthly pet rent, which can range from $25 to $100 per pet. With such fees, the extra income can add up quickly, helping you offset any potential minor damage and improving your overall bottom line.
Addressing Common Concerns: Pet Damage and Allergies
As a property owner, you may have valid concerns about pet-related damage or allergies. Here’s how to address these concerns and still make your property pet-friendly:
1. Pet Damage
While pet damage is a concern for many owners, it’s often less severe than expected. Pet-related damage is typically minimal, and the cost of repairs is usually lower than what owners fear. Many pet owners also take good care of their pets and maintain their properties well.
To minimize the risks, you can charge a pet deposit or implement pet-specific insurance. This extra security ensures that if there is any damage, you are covered. A pet deposit typically ranges from $200 to $500 and can help protect your property.
2. Allergies
Allergy concerns are another common reason property owners hesitate to allow pets. If you’re worried about tenants who have allergies, a solution is simple: after each tenant moves out, consider a thorough deep cleaning. This cleaning should focus on removing any pet dander that may have accumulated during the tenancy.
Pet-friendly rentals don’t need to create allergy problems. With proper maintenance and cleaning between tenants, you can keep your property in top condition while accommodating tenants with pets.
The Competitive Advantage of Pet-Friendly Policies
In a competitive rental market, offering a pet-friendly policy can set your property apart from others. Pet-friendly rentals are more likely to attract tenants who will stay longer and pay higher rent. Additionally, by catering to a growing segment of renters - those who own pets - you can maintain high occupancy rates and reduce the time your property sits vacant.
The key to capitalizing on this advantage is to take a balanced approach to pet policies. By charging reasonable pet fees, enforcing guidelines for pet behavior, and ensuring that your property is cleaned and maintained properly between tenants, you can benefit from the increasing demand for pet-friendly rentals without worrying about excessive risks.
How to Implement a Pet-Friendly Policy Successfully
Implementing a pet-friendly policy doesn’t have to be complicated. Here are some steps to help ensure a smooth transition:
Establish Clear Guidelines: Clearly define your pet policy in the lease agreement, including what types of pets are allowed, breed restrictions (if any), and rules about pet behavior.
Charge Pet Fees: Charge a reasonable pet deposit or monthly pet rent. This can be a one-time fee or an ongoing charge, depending on your preference and local laws.
Require Pet Insurance: Consider requiring tenants with pets to purchase renter’s insurance that covers potential pet damage. This adds an additional layer of protection for both you and the tenant.
Screen Pets: Similar to screening tenants, you can screen pets by asking for documentation like vaccination records and any prior pet-related references from former landlords. This will help ensure that your tenants’ pets are well-behaved and healthy.
Offer Pet Amenities: If your property is large enough, consider adding pet amenities like a dog park or designated pet areas. This can be an attractive feature for potential tenants.
Conclusion: Pet-Friendly Rentals Are a Smart Investment
As a rental property owner, adopting a pet-friendly policy offers numerous advantages, from reducing vacancies and increasing rent to boosting tenant retention. The data clearly shows that the demand for pet-friendly rentals is strong, and the financial benefits are significant. By allowing pets and charging appropriate fees, you can boost your revenue while minimizing risks.
In a market where competition is fierce, offering a pet-friendly rental can give you a competitive edge and help you attract tenants who will stay longer and care for your property. It’s time to recognize the opportunity and make your rental property pet-friendly!
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Resources:
National Association of Realtors - Why Allow Pets in Rental Properties: https://www.nar.realtor/blogs/rental-housing-issues/why-allow-pets-in-rental-properties
Petfinder - Data on pet adoption trends
American Pet Products Association (APPA) - Pet ownership insights in the U.S.
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