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About 72% of renters have pets. As a landlord, it’s up to you to decide if you want to allow animals on the premises. While some markets make it a necessity to stay competitive, some landlords have been burned by pet damage in the past. How do you know what the right policy is for you?
Having a flexible pet policy expands your tenant pool. On the other hand, it can cause damage to your properties and disrupt other residents. Here are a few things to consider before making a final decision.
Pros of a Pet-Friendly Rental
Having a pet policy helps edge out your competition and attract more tenants. You’re eliminating a growing pool of tenants if you forbid pets, after all.
Here are some more reasons to consider a pet-friendly rental.
1. It Can Encourage More Renewals
Keeping a tenant for a few years is a goal for many landlords — it eases the financial loss of a vacancy and saves your property management team a lot of work. Having a pet-friendly rental can actually encourage longevity. Many pet owners renew their lease because it’s hard to find other options. Plus, it’s a hassle for them to move and relocate with their dog.
In fact, only about 55% of apartments have pet–friendly policies. You’re already getting a leg up on some of your competitors. So, as long as you provide clear procedures and fair policies, the renter is more likely to stay in the rental unit that accommodates both their human and animal household members.
2. You Can Mitigate the Risk — And Collect Fees
Allowing pets on your property gives you the ability to add extra charges. For example, you could collect a reasonable monthly pet fee. This will enable you to cover wear and tear from pets, such as dirty carpets, thus building in some cushion for any pet-related damages that might incur by move-out.
Pet fees are non-refundable and can go towards your total income. You can also charge a pet deposit, which you can use to cover any damage caused by the pet.
Just check with your local laws about which pet fees and pet deposits are allowed and make sure your policy requirements are fair and in-scope. Many tenants are understanding that dogs and cats can create additional damage, and a reasonable fee is a low cost compared to the joy of having an animal companion.
3. It Sets Transparent Standards
Having a dog on the property can cause issues, but strict guidelines can help. You are covered for liability and pet damage when you have a detailed pet policy.
If you don’t have a specific document, your tenants might be tempted to skirt the rules and harbor pets illegally. This can lead to unexpected issues, less transparency and less control over the state of the unit. You will have recourse if your tenants break their lease terms, but it’s a headache to deal with.
If you’re interested in mitigating this risk, just outline clear behavior rules for your tenants to follow. Remember that charging a pet deposit ensures you can cover repair costs should the need arise. With refundable deposits, renters will be more likely to keep their pets in line.
4. Improves Your Reputation
Allowing pets on your property saves animals’ lives. Some renters may be forced to give up pets to shelters if they can’t find a suitable space that accommodates pets. In fact, annually, about 7.6 million companion animals enter animal shelters nationwide.
By offering a place for pets, you can help the community and increase your business’s reputation. Then, you’re more likely to get referrals and attract more tenants.
Cons of a Pet-Friendly Rental
While there are many perks to having a pet-friendly rental, there are a few downsides. Here are some things to consider before making a move.
1. Damage to Your Building
The risk of broken structures and soiled carpets is one of the common concerns. Animals are more likely to scratch floors and chew on rugs. This can disrupt the aesthetic of your apartment and lead to higher expenses.
2. Disturbing Neighbors
This really comes down to the responsibility of the pet owner, but there’s always the risk of disruptive behavior. This is particularly true in a multifamily building. One of the downsides for renters without pets is that the dogs can disrupt their routine. The animals may bark at night or run around the hallways, leading to complaints and a greater need to monitor tenant behavior.
3. Dealing With Liability Issues
If someone gets hurt on your property, liability becomes a concern. Mostly, it’s the pet owner who will bear responsibility for the behavior of their dog or cat. Pet owners can ensure their renters insurance policy includes pet liability to shield themselves against risk.
After all, with animals around, there’s a chance that someone could get bitten. If the bite is bad enough, it could need medical attention. Also, dogs could spread diseases to other residents.
As the landlord, you’ll want to make sure you lock down your pet policies to show you set rules to create a safe environment for all tenants. Be prepared to respond promptly to any tenant complains regarding pet behavior, too.
4. The Odors
Any accidents that pets have in the building can leave unpleasant smells. This can cause frustration for your other tenants.
However, clear guidelines about cleaning up can limit these issues. You should also be firm on the number of pets allowed — five cats are probably just going to smell no matter what cleaning rules are in place.
How to Set Up a Pet-Friendly Rental
Suppose you’ve decided that an animal-friendly rental property is for you. Consider these tips.
One important thing to know is that pet-friendly carpeting protects your floors from damage. Carpets are good choices to prevent scratches and reduce noise. Hardwood is another consideration since it’s easy to clean and has a classic sense of beauty. You can set guidelines on rug cover to protect expensive floors from wear and tear.
Here are some other maintenance tips for creating a successful pet-friendly residence:
- Install fencing.
- Use fewer pesticides.
- Add pet-friendly walkways.
- Create a digging pit.
- Be competitive with your rent.
- Install doggy doors and properly fitted screens.
Then, as we mentioned, spend some time looking over pet policy options to set up clear and fair guidelines related to accident prevention, cleaning and managing pet behavior. Aim to build transparency about what any pet fees and pet deposits are meant to cover so tenants have a good idea of what damage will incur costs at move-out.
Are Pet-Friendly Rentals Right for You?
As a landlord, allowing pets into your residence is a decision you have to make. There are pros and cons to both choices. A pet policy can attract more tenants but may also damage your building. So, weigh these different factors before making your final decision.
Author
Evelyn Long is the editor-in-chief of Renovated. Her real estate work has been published by the National Association of REALTORS®, Rental Housing Journal, and other online publications.
