Picture a pair of big, brown puppy dog eyes staring back at you. Can you say no to their whimpers and pleading faces? Many property investors turn down pet owners who are looking for a home.
The majority of pet owners (51%) in the US say their furry friends are part of the family. These owners aren't likely to live in your rental property if it means leaving a family member behind.
On the fence about allowing pets in a rental property? Read on to explore the pros and cons before making a choice!
Pro: Tenant Satisfaction
Since not all rental properties allow pets, it can feel like a hassle to find one that does. Once a pet owner finds an ideal rental, they likely won't want to stay. Boosting tenant satisfaction rates can lead to an increase in renewals.
Generating more lease renewals can lower your vacancy rate. You'll generate ongoing revenue if you retain tenants.
Con: Rental Property Damage
Not all pets are well-behaved. Before allowing pets in your rentals, develop a tenant screening process. You can outsource this process to an experienced property management company.
Screening tenants will ensure you find renters you can trust with your investment properties. If they have a history of complaints from previous landlords, you'll know to avoid that renter.
Otherwise, an untrained pet could cause hundreds or thousands of dollars in rental property damage. To cover rental property maintenance costs, charge pet fees.
A pet fee is a one-time expense. You can charge between $50 and $500 per pet. Charge owners based on the pet's size, type, and weight.
Pet rent is a monthly charge. You can charge renters $25 to $100 a month per pet. Use this expense to cover your rental property maintenance fees.
You can also charge a pet deposit, which is refundable. Charge between $200 and $500 per pet.
Pro: Bigger Tenant Pool
About 70% of American households own a pet. If you decide not to allow pets, you'll lose 70% of your tenant pool.
Your vacancy rate could increase if you don't allow these renters to apply. Instead, consider offering pets to generate more applications. A bigger tenant pool could help you maximize your occupancy rate.
Con: Complaints
An untrained dog could bark throughout the day, upsetting neighbors. You may receive an influx of noise complaints.
Hire an experienced property manager to handle these complaints on your behalf. They can help you avoid stressful situations.
Before allowing pets in your properties, consider requiring renters to hold renters insurance with coverage against dog bites. Their insurance can protect your best interests in the event of an incident.
Will You Allow Pets in a Rental Property?
Have you made a decision yet? Before deciding to allow pets in a rental property, consult an experienced property manager. Their experience and expertise can help you make an informed choice as a real estate investor.
Our team at PMI Grand Tetons can help. We have over 20 years of industry experience and awards to prove our expertise! Contact us today for help making this decision.
