One basic reality of pet ownership is that there will inevitably be some labor intensive time and effort in caring for them and cleaning up after them. If a day of cleanup is missed, it often seems like things get completely out of hand. Because of this fact, and a number of other factors, when an individual decides to rent out a property, the preliminary inclination is usually not to allow pets. The trepidation is rooted in the fear that renters won’t properly care for the pets and the messes those pets make both inside and outside of the property. The worst case scenario is that the property value declines because of damage and additional wear and tear caused by these animals. While these feelings are justified on occasion, they don’t necessarily have to be. Sometimes things can actually go in the exact opposite direction. In this blog post, we are going to dissect a few of the reasons why allowing pets can benefit the property owner.
Increase the pool of prospective tenants for your rental
Although the exact figure fluctuates, typically somewhere right around 50% of rental properties on the market are considered pet friendly. When a property owner decides that allowing pets isn’t for them, they are effectively joining a group that a large portion of potential tenants won’t even consider renting from. Conversely, by making the choice to have a pet friendly property, they are significantly increasing their pool of potential new renters. Some studies have shown that up to 75% of renters own pets. These individuals are usually very well aware that finding a property to rent that allows pets can be a big undertaking. The shortage of pet friendly rentals on the market also helps to drive up both the price of rent and demand for these properties.
Increase your renewal rate
When renters decide to move out, it often is the beginning of a very stressful process. Some of the worry is that when new renters are found, they might not be as good at taking care of the property as the previous ones were. What if it is difficult to get the new renters to pay their rent on time? Perhaps they might be less responsible and messier than the previous ones. Perhaps they won’t comply with landlord requests. There is also the potential of having to go without rent payments for a significant amount of time while searching for new tenants. Choosing to make your property a pet friendly one can help create loyal and longterm tenants. A large portion of renters have dealt with the challenges that are inherently involved in finding a new place to rent. The probability of tenants wanting to renew their lease with you increases dramatically when they are in a pet friendly property.
Increase your earning potential
Looking for ways to increase revenue is an essential part of being a successful real estate investor. If your property allows pets, there are a couple of tried and true methods that can be utilized to accomplish this. Many property owners levy a pet deposit that is due at move in. This deposit is nonrefundable or only partially refundable. The purpose is theoretically to cover the cost of a more extensive cleaning than normal. However, on many occasions the tenants have taken good care of the property and the additional cleaning isn’t even required. When this happens, the nonrefundable deposit becomes additional revenue. A large portion of pet friendly properties also charge an extra “pet rent” fee. The fee doesn’t have to be expensive in order to make a substantial difference as even a $30 a month fee will add up to be $360 extra in annual revenue.
Increase the quality of tenants that your property is attracting
Within the segments of the general population, pet owners are generally considered to be in the more responsible category. As any pet owner can tell you, caring for pets is no small undertaking. Those willing to take the time and effort to care for pets often go above and beyond in other areas of their lives as well. There is a likelihood that these individuals will take pride in caring for your property. Some may even treat it the same way they would treat their own home.
When contemplating whether or not you should allow pets in a rental property, it is wise to consider the reasons it can actually be a beneficial proposition. If you are worried about managing a pet friendly property or have questions about how to structure everything properly, don’t hesitate to reach out to property management companies in Atlanta like PMI Perimeter.