Reasons You Should Rent to Pet Owners
Do you welcome tenants with pets into your rental property?
Many landlords have mixed feelings about pet-friendly rentals. While the pool of tenants is greater, a major concern is potential pet damage to the property, such as urine stains, bite marks and scratches.
Around two-thirds of U.S. households own a pet. Not addressing the needs of renters with pets could significantly reduce your list of prospective applicants. Plus, there are even more benefits that you could enjoy as the owner of a pet-friendly rental property.
We will take a closer look at the reasons why it pays to allow renters with pets into your rental unit. But for starters, we'll learn about the principles of drafting an efficient pet policy.
The Starting Point: How to create a sound pet policy?
Whenever you decide to accept pets on your rental property, you should perform a pet screening and attach a pet agreement to your lease. The pet agreement will defend your interests by listing additional terms and clauses regarding domestic animals.
A solid pet agreement covers the following aspects:
- The weight limits for larger pets.
- The requirement of collars or ID-tags that prove the pet has been vaccinated.
- The full list of the tenant's responsibilities as a pet owner.
- The requirement for each pet to be separately approved by you.
- The list of banned dog breeds, if any.
- Whether you allow only your tenant's pets on the premises or their visitors' pets as well.
- The complete list of the types of pets that are allowed to be kept in the rental space.
What about renter's liability insurance?
As a landlord, you should consider the benefits of requiring your tenants to get renter's liability insurance. This is because having pets at home is always going to increase the risk of injuries to other renters or their guests.
Be certain that the particular insurance plan covers pet-related incidents. Since some insurance plans fail to include dog bites, it's vital to double-check for this legal component. Additionally, to reduce the stress of being up-to-date on these kinds of laws, hiring a property management team can benefit you.
However, setting the renter's liability insurance as a strict requirement may not be legal in your state or local area. Before including this clause in your lease agreement, check the state and local laws to be on the safe side.
Additionally, to reduce the stress of being up-to-date on these kinds of laws, hiring a property management team can help. Click here to read about these benefits.
Why is it beneficial to accept tenants with pets?
Here are the top benefits of owning pet-friendly rental properties:
1. More Rental Income
Gearing your rental property towards people with pets could easily boost your monthly income. There are two ways for this to happen:
Sustainable cash flow. Since pet-friendly rentals attract more applicants, you will have fewer worries about your tenant turnover rate. Also, tenants with pets are more likely to renew the lease. An enhanced renewal rate and more potential applicants make for a greater likelihood of higher income.
Pet fees. You could use pet fees to generate extra, regular income. Take note that pet fees are not the same as pet deposits.
Pet fees are non-refundable fees that will bolster your annual income. For instance, charging a $20 monthly pet fee will add $240 further income annually. Pet deposits, on the other hand, can be used for repair needs that arise from pet-related damage.
2. Quality Tenants
Did you know that dog and cat owners are likely to earn higher salaries and have a better financial situation compared to people without pets? This fact alone should make this target group more attractive to you. What is more, tenants with pets earn on average more than $50,000 annually.
Pet owners have the time, money and maturity to take care of another living being. As a landlord, you should have responsible people living in your rental property. Accepting pet owners is one way to decrease the risk of delinquency.
3. Fewer Vacancies
Elevated vacancy rates create a lot of problems for property investors. When your rental units stay empty, you face running expenses without positive cash flow and profit. Finding strategies to keep your rental units filled is vital for ensuring your rental's profitability.
Pet-friendly rental properties have lower vacancy rates. That's because there are fewer rental properties on the market that welcome pet owners. The reduction in vacancies results from greater applicant interest and lower tenant turnover rate.
4. Fewer Tenants Sneaking in Pets
You can't completely diminish the risk of tenants ignoring a policy against having pets on the premises. Even inspections may not always uncover any hidden pets, as you must notify your renters beforehand.
Designating a pet-friendly rental space allows all of your tenants to be open about their pet ownership. You are then able to control more aspects of damage or other issues related to having pets.
5. More Applicants
According to the Insurance Information Institute, around 67% of households in the States own at least one pet. This is approximately equal to 85 million families.
For you as a landlord, this means that disallowing pets on your rental property has serious financial implications. By excluding households with pets, you'll leave out many potential renters. Picking a pet-friendly approach to doing rental business unlocks a great number of responsible applicants who could quickly fill your rental units.
The Bottom Line: Why you should rent to tenants with pets
Renting to tenants with pets isn't simply about being an accommodating landlord. As a rental property owner, you stand to gain many benefits when opening your doors to furry family members.