Should You Accept Pets? Yes!

Most landlords would agree that they would prefer to have tenants that do not have pets. It is thought that accepting pets means that the landlord will have to foot the bill for more repairs when the tenant moves out. But is this true? Should landlords accept Fluffy and Fido? According to a study completed by FIREPAW, there is conclusive evidence that you should accept tenants with pets. Here are the top 5 reasons.

Reason #1 A Greater Selection of Tenants

Current statistics indicate that 75% of renters either have a pet or would want to own a pet if pet friendly housing was available. Advertising that your units are “Pet Friendly” will dramatically increase the number of applications you receive. If you are finding it hard to rent out your units, consider increasing the number of potential applicants by accepting man and the man’s best friend.

Reason #2 Reduce Your Vacancy Rates

Tenants with pets tend to stay significantly longer than their pet-less counterparts. According to the results of the tenant survey, tenants with pets stayed on an average 46 months compared to only 18 months “for tenants residing in rentals prohibiting pets.” Tenant turnover creates a measurable effect on unit profitability. The longer a tenant stays, the more steady your income. If you want your tenants to stay longer, then consider welcoming their pets.

What is more, vacancy rates for pet-friendly housing is considerably less when compared to other housing. Landlords spent less time advertising their units. “The average time it took to rent out a pet-friendly unit was 19 days compared to 29 days for non-pet-friendly units.”

Reason #3 You Can Protect Against Damage

Pet owners realize that you do not want their cat scratching on the walls and their dog digging up the wood floors. As such, they expect to pay a pet deposit in addition to the standard security deposit. According to FIREPAW, the average pet deposit was “between 40% and 85% of the rent.” The deposit was often based on the type of pet with the larger pets, such as dogs, demanding a larger deposit. I have personally seen pet deposits range from $50 to $150 but the higher the deposit the greater your security.

Reason #4 Pets Increase Net Operating Income (NOI)

In addition to a pet deposit, pet owners are also willing to pay a monthly fee to keep their fuzzy companions by their side. In that same survey, rent premiums tacked on an additional 20% to 30% of the average market rent. That means that a unit renting for $850 could support a rent premium of $170 to $255. This will dramatically increase your net operating income.

Reason #5 Actual Damage is Less than You Think

Landlords worry about having to foot the bill for the damage when the tenant moves out. But is this a valid concern? The FIREPAW survey asked the same question. Of the landlords that responded to the survey, 48.2 percent stated that they have “never experienced damage from companion animals allowed in their units.” When asked how much the worst repairs costs, the average response was only $430. When you consider the security deposit and the additional pet deposit, the cost is more than covered – not even factoring the additional monthly income. “The findings appear to demonstrate that landlords do not experience any substantive loss. The majority of the time the damage is covered by the deposit, leaving the rent premium landlords receive from renting pet-friendly units untouched.”

The evidence indicates that the benefits of accepting pets in rental units far outweighs the risks. The additional rental income alone should be a sufficient motivator to consider the matter further. So if someone asks you, “Do you accept pets in your rentals?” How will you answer?