Should I Allow Pets in My Rental Property?
Yes, I would. Here is why.
1. I will have a larger pool of potential residents.
According to Zumper.com, the majority of U.S renters are in their 30 days and they own at least one pet.
75% of people in their 30s own a dog,
50% of people in their 30s own a cat
If you don’t allow pets, you are largely reducing your potential resident pool. Consequently, It may also take you longer to find a tenant, causing longer vacancy.
2. I will have less vacancy
According to FIREPAW, here are the vacancy rate comparison between pet-friendly rentals and non-pet-friendly ones:
Pet-friendly rentals have an average vacancy rate of 10% on average.
Non-Pet-friendly rentals have an average vacancy rate of 14% on average.
e.g. 4% difference for a rental property which generates 25k income is $1,000.
3. I will have longer-term of leases.
According to the Foundation for Interdisciplinary Research and Education Promoting Animal Welfare residents remained much longer in pet-friendly units.
For pet-friendly rentals, tenants stay there for nearly 4 years on average,
Non-Pet-friendly rentals, tenants stay for 1.5 years on average.
Less turnover means less cleaning and R&M costs every time a tenant moves out.
Less turnover means more stability and less leasing expense
e.g. For a $2000/month unit, with 100% leasing fee and 10% renewing fee from a PM company.
For a term in a pet-friendly rental (4 years), the non-pet friendly rental will incur the following additional expense.
additional leasing fee: 4/1.5 * 2000*100% - 2000*10%= $5133.
additional touch up e.g. painting and R&M to get the unit ready for next tenant =~$2000 (conservatively)
In the above expense, for a 4-year term, you are losing more than $7000 revenue.
4. I can charge higher rent
According to the FIREPAW report, pet-friendly rentals are able to charge 20%-30% higher rents.
Pet-friendly rentals can charge $1300/ month on average.
Non-pet-friendly rentals can charge $1,070/ month on average.
Even with so many upsides, some owners are still having concerns about allowing pets in their properties. The major concerns are
What if pets damage your property
What if pets hurt other residents.
We understand accident happens, but if you plan ahead and have yourself and your tenants insured and protected, you will do great by having a pet-friendly rental property.
How to protect yourself from allowing pets in your rental property?
1. Set Up Pet Policies
On average, pet-friendly rental housing owners charge a separate pet deposit. The average pet deposit was between 40% and 85% of the total monthly rent.
You can also require the tenants to have renter’s insurance regarding their pets.
2. Pet Screening
We understand resident background check and screening. Similarly, there are companies specified in pet screening. They help property managers screen pets, and residents track records on their pets. In addition, some of the experienced local PM companies can also give you advice on type of pets what are dangerous.
