About 76% or 85 million families have pets. If you own rental property, this is a large portion of the population that could become your tenants. However, this also means you'll need to allow pets in your rental properties.
Many rental owners don't allow pets because they are notorious for causing damage. These damages could potentially reduce your net profit even further. However, it doesn't have to be this way.
This guide will show you why you should consider allowing pets in a rental property that you own.
Larger Prospective Tenant Pool
Opening up your rental homes to applicants with pets means you'll have a much larger applicant pool to choose from. Therefore, the more applicants you have, the lower your vacancy rate should be.
You can also find high-quality tenants that happen to own pets. These are tenants that have strong credit scores and pay on time. You would have missed out on them because your blanket policy would have denied their application before consideration.
Increase Your Income
Allowing pets means you can charge more. Start by charging a pet fee in addition to a security deposit. Unlike the security deposit that you have to return when the tenant moves out, the pet fee you can keep.
You can also charge an additional lower fee for each additional animal that the applicant wants to bring with them. Some landlords also charge pet rent. This is a monthly fee that the tenant pays in addition to the agreed-upon rent.
Reduce Tenant Turnover
Your tenant screening process is in place to reduce your risk and hopefully secure high-quality tenants. These are people who will pay their rent on time, take care of your property, and renew their lease year after year. Pet owners show stability and responsibility by committing to care for an animal.
Selecting a tenant that has pets can help you reduce your tenant turnover rate. This reduces vacancy rates and turnover costs.
When You're Required to Allow Pets
Sometimes, you won't have the option of saying yes or no. The Americans with Disabilities Act (ADA) and the Fair Housing Act create protections for those individuals who require the assistance of a service animal. This affords service and assistance animals the right to live with their owners.
Sometimes, the need for the support animal isn't always immediately apparent. You can request a letter from a medical professional that states the applicant's need and the support dog's job for the person.
While you can't charge pet fees or pet deposits, you can request that the tenant pays for any damage caused by the animal. You can also seek recovery should the animal become a nuisance or dangerous.
Allow Pets in a Rental Property
While allowing pets in a rental property does present a certain amount of risk, several benefits can make the risk well worth it. Allowing pets means you can reach a larger applicant pool, increase your income, and reduce tenant turnover.
Contact our skilled team of property managers today and let them show you how to safely allow pets in your rental properties.