To pet or not to pet?

Question

OK people I believe this is my first post. Im a seasoned (I think) investor of 5 years. I live in Lake City MN and have rentals there and in Red Wing MN, and Hammond MN, near Rochester MN. I currently have 36 units, a nice mix of 7 sfh, 3 duplexes, 1 tri, 1 4plex, and a 16 unit apartment. The 16 unit is the new one that put me over the top to go full time. Its also the subject of this post. I'm needing to fill the units, they are about half full now but its been a hard road here finding good tenants. The apartment building is in Hammond MN about 20 min north of Rochester. It was converted from a schoolhouse long ago. Its a mix of about half 1 br and half 2br units. OK, this place has had a rough history. I guess for a while it was considered a crack house. I think I have some good tenants left and haven't had any problems yet. I'm doing background and credit checks to keep good people coming in but I'm not getting a ton of good applicants. For criteria I'm only denying for felons less than 10 yrs. For credit i just don't want any judgements in the last year. Not to hard I think. I think the rents are fair. For those who know the Rochester area. I have 1br at 500 to 575 and 2br from 625 to 700. All services are included except electric. We have been doing a fair job of remodeling the units, new flooring, some new appliances, a nice refreshing. I have been shifting my policy in the last few years to no pets after dealing with some problem tenants with pets. When I first started out I did allow pets and had the mindset that if I got good people they would be good pet owners and would also stay longer because its hard to find places that allow pets. Im thinking a good way to get these units rented out with long term tenants might be to start allowing pets here. I would definitely fill a niche in the market. Any advice for or against that, examples of pet policy's, or other ideas to market this property?

Ive been using Zillow, craigslist, facebook, Mayo employee site, calling colleges, local employers, plus other things.

Heres a rough outline of what I'm thinking, cats ok, dogs up to 15 lb, 25 pet rent, Carpets will be professionally cleaned.

Please let me know what you think.

Joe Hammel.

Ive been using Zillow, craigslist, facebook, Mayo employee site, calling colleges, local employers, plus other things.

Heres a rough outline of what I'm thinking, cats ok, dogs up to 15 lb, 25 pet rent,  Carpets will be professionally cleaned.

Please let me know what you think.

Joe Hammel.

Thomas S. · Answer

Your rents indicate a lower demographic in regards to tenant quality. For that type of tenant it would be a very major mistake to allow pets. They simply do not have the necessary social standards to be good pet owners.

Be patient.

Merle Svenson · Answer

This is a big building with lots of units right? Have you ever heard dogs barking at each other throughout the night? Fighting in the hallway when people take them down for walks? The crap in the yard outside your building? Pets are a pain in the butt for a multi unit rental you are trying to keep clean and improve the reputation on.

Mike Wood · Answer

@Joseph Hammel I allow pets in my units without carpet.  I would never, ever rent an apartment with carpet to a tenant with pets.  If your rehabbing the units, why not consider LVP (luxury vinyl plank) flooring? Its pretty cheap, lasts longer than carpet, and is way more pet friendly.

I agree that allowing pets will open up your rental pool.  I would also not limit the pet size, but would limit the amount of pets per unit (I only allow one pet per unit, period. Im not interested in someone with a Zoo). Tenants have a very hard time finding units for larger dogs, and I have found personally and as a landlord that smaller dogs do more damage than large dogs.  But I make pets conditionally on meeting them in person and have the right to not allow them if they are not well behaved or aggressive.

I also would be concerned, as other have stated, with your price point.  Lower price points and pets are problematic.

Joseph Hammel · Answer

It is in a Rural setting also. I think thats a factor that makes it more conducive to pets. A very large yard with room to roam and do their business.

Dylan B. · Answer

I agree with @Deanna McCormick. Especially in an apartment complex.

Mike Sattem · Answer

@Joseph Hammel,

I also allow pets as it allows me to increase my rents by $50/Mo for a dog. However, I have come to find when converting crack houses/multi's to rentals the exterior remodel is the most important in changing the perception. Even if it doesn't really need it, I always do a whole exterior paint and landscaping. Also, I always write letters to all of the neighbors introducing myself, and thanking them in advance for their patience while we rehab the building; making sure I emphasize how big the project is, and the high quality tenants that my property management company will be placing once the project is done. I have found the neighbors are a great way to start the word of mouth campaign about how the building is getting cleaned up.

Matt B. · Answer

I allow pets in my rental. Most people don't but I'm a big pet guy. I only allow cats and dogs. No "dangerous breeds" as determined by my insurance or other type of animals. My current tenant has 2 cats which he takes care of very well. The house always smells amazing and is always cleaner than I keep my own house. In my area allowing pets pretty much eliminates vacancy. My house was rented in NYC in less than a week from the time my RE agent did an open house. Do what you feel is best for your business.

I allow pets because it works for me and I am a pet owner myself. To me they are like children but you should do what works for you.

Deanna McCormick · Answer

NO and again NO and again NO PETS.  IT"s a not win situation.

SIMPLE and EASY no pets,, people don't take care of them , if they cant afford cat food they cant pay rent. same for dogs.

DONT start don't even think to start letting pets in the door.

40 years of property ownership and management.. I"M telling you I've seen it all either working for other owners or in our own properties.. NO PETS

Jeff Richman · Answer

You could allow pets and charge a non-refundable fee of $150 per pet, multiple pets are less cumulative.  You can also charge a carpet cleaning fee that is mandatory.

Jim S. · Answer

The $50/month does NOT cover the damage a pet can do in 8 months. Screen, screen, screen. Maybe start out a no pet policy and see what kind of people you have interested??? Good luck.

To pet or not to pet?

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