From ripped carpets and scratched floors to accidents, we are all familiar with a pet’s potential to damage apartments. However, responsible pet owners can actually be beneficial to your income property. There are several important factors to consider when deciding on a pet policy for your property management plan.
Aside from the problems animals may cause, there are substantial benefits to allowing your tenants to have pets. Your income property could be more profitable if it was pet friendly.
Allowing pet-friendly rentals increases your bottom-line. A 2011 analysis of the condominium market in the Journal of Real Estate Finance and Economics found that pet-friendly landlords who place no restrictions on pet ownership enjoy an 11.6 percent rental premium over those who do not allow pets.
According to the 2015-2016 APPA National Pet Owners Survey, 65% of U.S. households own at least one pet. When tenants are forced to make a choice between giving up their pets to rent your property or look elsewhere for housing, there is an extremely high chance that they will choose the latter.
- Tenants with pets stay longer. Even with higher rent, tenants with pets stayed an average of 23 to 46 months longer than those without pets.
- Pet-friendly rental properties have significantly lower vacancy rates. In addition, these rental properties received twice as many applicants for a vacant unit than properties that did not permit pets.
- Renting to pet owners saves time and money. It takes less than half the average amount of time for marketing, advertising, and renting a pet-friendly home.
Before getting exciting, let’s go over a few myths about pets on properties.
MYTH #1: OWNERS WITH PETS = MORE DAMAGE TO PROPERTIES.
Research shows this to be unfounded. Studies have indicated that pets cause less damage than children and we all know we should not discriminate on familial status, Right!
MYTH #2: DANGEROUS BREEDS = OUTLAWED
Some breeds are getting a bad reputation. Many pet lovers are now adopting “taboo” breeds and challenging the stigma against them. It is a different story if the owner/tenant, can not get appropriate insurance because of the breed.
MYTH #3: SMALLER BREEDS = LESS DAMAGE
The size of the pet is irrelevant to predicting potential damage. Some large dogs are couch potatoes and sweet as can be. Cats can at times claw the heck out of the carpet. My advice is to make sure that you have everything in your agreement and expectations, fees and rules are crystal clear.
Handling all the requests, demands, and questions will get overwhelming once you allow pets. That Is where Real Property Management Excellence can help with all the tenant applications as well as the management.
- Process and screen suitable tenants.
- Show properties.
- Answer tenant questions.
- Handle maintenance calls.
- Clean and restore the property for the next tenants.
- Check State and Local Laws. Some states and regions have specific laws about how pet-friendly properties. Specify everything in all documents.
Add information into the lease, describing the kinds of pets that are allowed. Being specific is crucial, do you allow lizards, rodents, snakes? Be sure to include breeds and sizes. If you have no limitations, then that is to be written. Everything should be clear on all documents, management agreements, lease agreements, and schedule of fees.
What behaviors will and will not be tolerated, should be stated. For example, if there is a rule about incessant barking, the tenants will be responsible for finding a solution or could be subject to eviction. Rules vary depending on where the property is if there is a Home Owner’s Association (HOA). Not all HOA’s are alike, in case you did not know, there is no such thing as a standard HOA.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.