Imagine a sweet kitten yawning in your lap or a goofy puppy nuzzling your ankles. Wouldn't you want to give that fur baby a safe, stable home? If you don't allow pets in a rental property, these furry friends and their owners will look elsewhere.
On the fence about allowing pets in your rentals? Read on to consider the pros and cons first. Make an informed choice with your real estate goals in mind after reading this guide!
Pro: Larger Tenant Pool
About half of the pet owners in America say their pets are as much a part of the family as any human member. Meanwhile, most Americans (over 60%) own a pet. If you decide not to allow pets in your properties, you'll close yourself off to these renters.
Allowing pets leads to a larger tenant pool. You could have an easier time filling vacant units, leading to a higher occupancy rate. Meeting your maximum occupancy rate will allow you to maximize your earning potential.
If you decide to allow pets in your rentals, develop a tenant screening process. Choose good tenants you can trust with your rental properties. Screening tenants can help you avoid renters who may otherwise pay late or cause property damage.
Con: Property Damage
Selecting renters who don't take the time to train their pets could lead to property damage. For example, pets could:
- Chew on doorways or wood fixtures
- Urinate on the carpets
- Destroy the landscaping
Before allowing pets, consider charging a pet fee, pet rent, and a pet deposit fee. The pet fee is a one-time, non-refundable fee (ranging between $50 and $500 per pet).
The pet rent is a monthly fee (varying between $25 and $100 per pet per month). The deposit is a one-time refundable fee that can cover damages caused by the pet (usually $200 to $500 per pet). If there are damages, you can use these fees to cover property maintenance.
Pro: Higher Rent
While market value will determine your rent prices, you can charge additional fees if you decide to allow pets. You'll receive a higher rent from each pet owner, allowing you to generate more revenue.
Con: Strange Smells
Pets that aren't trained properly could urinate in your rental properties. You may notice strange smells, especially if the owner doesn't clean up after their pet.
Pro: Tenant Retention
Once they find a pet-friendly rental, most tenants will want to stay instead of moving around with their pets. You could have an easier time retaining renters long-term.
Increasing your retention rate will improve your ROI. You won't have to worry about an increase in vacancies.
Con: Loud Noises
Untrained pets can bark through the night or when their owners aren't home. Neighbors may start complaining. Consider adding quiet hours to your rules before allowing pets.
Will You Allow Pets in a Rental Property?
Have you decided to allow pets in a rental property? For many investors, the pros outweigh the cons. Consider reviewing your options with an experienced property management company.
Our team at PMI Made Simple has 20 years of experience helping property owners like you. We use state-of-the-art technology and award-winning strategies to help owners maximize their earning potential. Contact us today for help making this choice!