As a landlord, deciding whether or not to allow pets in your rental home can be a challenging decision. With nearly 70% of U.S. households owning pets, the demand for pet-friendly rental properties has increased in recent years. Owning a pet-friendly rental will attract a wider pool of applicants and potentially boost your rental income. However, pets can also bring risks such as property damage and complaints from neighbors. Continue reading below as we navigate the pros and cons of allowing pets in your rental investment.
The Rise of Pet-Friendly Rental Properties
According to an Apartments.com survey, nearly 90% of renters say a building’s pet policy influences where they choose to live, and a majority of pet owners are willing to pay more for a pet-friendly property. More tenants are seeking landlords who will accommodate pets as part of their leasing terms.
This trend reflects broader changes in how people view their pets, not just as animals but as family members. In response to this trend, landlords and property managers are now adapting their leasing terms to allow pets while taking necessary precautions to prevent issues during the lease.
Pros of Allowing Pets in Your Rental Property
A pet-friendly rental property can open a lot of opportunities, especially if you want to stand out in today’s competitive rental market. Here are some of the advantages to consider:
1. Larger Tenant Pool
Pet-friendly properties tap into a broader rental market. Having a larger tenant pool can help reduce vacancy and improve your tenant selection process due to the added criteria on your checklist.
2. Higher Rental Income
Pet-friendly rentals are often priced at a higher rent compared to regular ones. The good thing is that tenants are generally willing to pay extra, including non-refundable pet fees or a higher security deposit.
3. Longer Tenancy
Since it can be challenging to find another pet-friendly rental, these tenants are more likely to renew their lease year after year, which can reduce turnover costs for you.
4. Better Tenant Relationships
Allowing pets can foster goodwill between you and your tenants. Happy tenants are more likely to take care of the property and communicate openly with you, which can result in fewer issues and improved overall maintenance.
Cons of Allowing Pets in Your Rental Property
While the benefits are substantial, there are also risks to consider when allowing pets in your rental property:
1. Property Damage
Pets can cause wear and tear that goes beyond what a typical security deposit might cover. From scratched floors and chewed carpets to stained walls or doors, these are a few of the concerns of landlords if they allow pets in the rental.
2. Noise and Odors
Barking dogs, litter box smells, or pet accidents can result in complaints from other tenants or neighbors, especially in multi-unit properties. These disturbances can affect your property’s reputation and desirability.
3. Liability Risks
There’s always a risk that a pet may bite someone or cause injury. This can lead to legal complications, especially if your insurance doesn’t cover pet-related incidents. Research about some specific dog breeds that are often excluded from most landlord insurance policies.
4. Cleaning Costs
Additional cleaning is often required when tenants move out, including pet hair removal, pet odor treatments, including air filter replacements. The costs of these additional cleaning treatments may not be recouped through the traditional security deposit, especially when the tenant disputes the charges.
Setting Smart Pet Policies
If you decide to allow pets, having a clear and enforceable pet policy is essential. You can limit the number, type, size, and breed of animals allowed on the property. Require tenants to register their pets and provide updated vaccination records during the application.
As a landlord, you should set pet policies and recommendations to ensure protection between you and your tenants. This includes outlining acceptable behavior, designating pet-free areas (if applicable), and including penalties for policy violations.
In some cases, a pet screening process can be helpful, similar to a tenant background check. Service providers such as PetScreening.com allow you to verify the animal’s behavior history, vaccination records, and obtain references from past landlords.
Working with a Property Management Company
Allowing pets in your rental property is a decision that should be made carefully. Landlords must also consider the risks and implement pet policies to protect their investments. Managing a pet-friendly rental is more work for landlords, but working with a trusted property manager can help with the required tenant and pet screening, including appropriate documentation of the entire application process.
Contact your property management company in Atlanta to assist you in setting your house rules and regulations. Whether you’re leasing a single-family home or managing multiple units, professional support can make the difference in managing a pet-friendly rental and avoiding costly mistakes.
Disclaimer: The information provided in this article is for general informational purposes only and is not intended as legal, financial, or professional advice. While we strive for accuracy, we make no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability, or availability of this information. Use of this information is at your own risk.
