Accommodating pets can have many advantages for a real estate investor. But before deciding to welcome pets in your rental property, it’s important to study the benefits and drawbacks to determine that you’re ready to welcome pet owners in your rental home.
Remember that deciding to be a pet-friendly rental space means that you need to add a pet addendum to your leasing agreement. So, with this in mind, we at Mark Thomas Properties have put together this article to help you make an informed decision.
Benefits of Accepting Tenants with Pets
When renting out your investment property, there are many aspects to consider. But many landlords dismiss accepting pets, however there are several advantages of renting to pet owners such as the following:
Charging a Pet Deposit
Renting to a tenant with a pet give doesn’t need to leave you in a vulnerable place. Landlords can charge an additional deposit specifically to cover any damages the pet may cause. However, you cannot charge a pet desposit for a registered service animal - this would be a violation of the Fair Housing Act.
Broaden Your Pool of Prospects
With the rise in pet ownership, a lot of tenants are scouting for landlords that allow tenants with pets in their properties. Welcoming them gives you more opportunity to gather a broader pool of renters you can select from.
Land Long-Term Tenants
Looking for a rental space that accommodates pets can be challenging. So, when pet owners find one, they tend to stay for the long haul.
Aside from the rigorous process of pet screening when transferring to another rental, pet owners prefer their pets to stay in a familiar environment. The consequence being landlords who welcome pets can generate consistent income by having long-term tenants around.
Set an Increased Rent Price
Given the risks that a property owner shoulders, pet-friendly rentals tend to have higher rent rates. Pet owners understand the reason behind this and accept that the rental rate they’ll be paying will be higher compared to non-pet owners.
Drawbacks of Accepting Tenants with Pets
Even though there are some great advantages to advertising you rent to pet owners, there are disadvantages such as:
Exposure to Property Damage
Damages can occur when pets are around. You can expect scratches on your doors and marks on your furnishings.
You can cover this by asking for a higher security deposit or additional pet deposit to cover for property damage. This way, pet owners are more careful and discipline their pets from chewing the objects around the property.
Noise Caused by Pets
Disturbances around the neighborhood like dogs barking can happen. But a competent landlord can manage this situation by sending a written notice to the pet owner.
If the warning is ignored, it’s best to remind the tenant of the conditions covered in the leasing agreement. If the noise continues, you could decide to evict the tenant.
Injuries From Pets
If a tenant’s pet shows aggressive behavior, you should meet with the owner to resolve the problem. This should be a priority since you want to avoid the possibility of injuries.
If the matter continues to be an issue, you can request the pet owner to remove the pet from the rental or face eviction.
Odors That Pets Leave
Pets can leave behind unpleasant smells. Owners must then see to it that hygienic practices are adopted. If you receive a tenant complaint over this issue, you can speak with the pet owner and advise them on how to clean the mess.
As a pet-accommodating rental property, it’s advisable to be aware of the following:
Check your Insurance Coverage
Injuries caused by pets are possible so it’s important to review the liability coverage of your insurance policy.
Landlords will want to protect themselves from the hefty medical bills associated with pet attacks. Some insurance firms are also selective when it comes to particular dog breeds. You must know the terms beforehand.
Screen the Pets
Take time to screen pets and interview the pet owners. It’s best to find out more about the pet before welcoming them in your rental. Evaluate based on discipline, training, size, and breed. Some dog breeds are more aggressive leading property owners to create a restriction list.
Include a Pet Policy
Having clear and specific points in your lease is a great way to attract renters. With this in mind, you must have clear and specific conditions in your lease regarding being opened to permitting pets in your rental. Terms and conditions must be properly laid out to set expectations early on. Pet policies generally cover details on the pets that are permitted, and the number of pets allowed per tenant.
Opening your rental home to pet owners needs proper planning. You must be ready with pet addendums, update your insurance policy and be prepared to conduct tenant screening. As, there are risks when welcoming pets in your property. However, the benefits can be great.
Welcoming pets gives you a great chance to earn a higher income, gain long-term renters and have a sizable pool of prospects to look for a high-quality renter. Even if risks exist, you can always manage them to maximize the benefits that come from accepting tenants with pets.
To assist you in performing the tasks of property management, you can always contact Mark Thomas Properties Property Management. They offer exceptional property management services.