A landlord’s decision on whether to accept pet owners as tenants should not be taken lightly. It involves a balancing of several factors relating to the risks and rewards associated with running a pet friendly operation. Here are the main pros and cons that should control your decision to allow or prohibit pets in your homes or apartments.
PROS
1. Higher Rent
Landlords who rent to pet owners are in higher demand than those who don’t. Higher demand increases prices, meaning you can charge more rent for the property if you allow pets. The additional charge can take the form of pet rent, a non-refundable pet deposit or a pet fee. Some studies show that apartments that allowed pets were able to charge 20% to 30% more than non-pet friendly rentals.
2. More Rental Applications
The higher demand accompanying a rental that allows pets will also result in more rental applications as compared to a non-pet friendly rental. As a result, you can rent the property faster on average and can also be more selective regarding the applicants under consideration.
3. More Loyal Tenants
Statistics show that pet owners are more likely to be long-term tenants who move less frequently. A long-term tenancy translates to more consistent income for a landlord. Accordingly, being open to allowing pets in your rental property ensures you’ll be able to maximize your returns from your property investment.
CONS
1. Noise Complaints
Many pets are adept at making noise, which can increase the number of noise complaints you receive. As a landlord, you’re responsible for creating an environment of quiet enjoyment for your tenants. Noise can lead to friction among tenants, and is actually among the top tenant complaints.
2. Property Damage
There is obviously a higher likelihood of property damage (such as scratched doors and floors, pet odors and damaged furnishings) if pets are allowed to live at the premises. Landlords are understandably hesitant to accept pets for this reason. However, as discussed below, there are easy ways to protect your property by adopting good pet screening procedures, and ensuring your security deposit is sufficient to cover pet-related damages.
3. Dog Bite Injuries
Another situation that landlords would rather avoid is dealing with pets causing harm to renters. Depending on the situation, landlords may be obligated to keep the tenants safe, so it’s important to create an injury-free environment. One dog bite on your property can turn into a loss of several thousand dollars if the circumstances create landlord liability under existing law.
MANAGING THE RISKS
Here are ways to mitigate the risks associated with allowing pets to live on your property:
- Exercise Due Diligence In The Application Process
Ask questions about the pet, such as how long the owner has had him, if he is up-to-date with vaccinations, how old he is, and how many hours he’s left alone a day. Also, remember to ask direct questions about the pet’s behavior, such as whether he has ever bitten anyone, and what damage he has done to previous property. If possible, try to observe the control and discipline a pet owner has over the pet. You can also call up previous landlords to obtain information on whether the pet has caused problems in the past.
2. Have A Strict Pet Policy Included In The Lease Agreement
The lease is your opportunity to set ground rules for allowing pets to live on your property. Make your pet policy as clear as possible. For example, write down what constitutes damage to the property and make sure responsibility for such damage lies with the pet owner. You should also have language making the pet owner liable for an injuries that the pet causes to other tenants, guests and invitees. In addition, specify the circumstances that give you the contractual right to evict the tenant, such as multiple noise complaints from other tenants.
3. Increase The Security Deposit
Pet owners are more likely to safeguard your rental home from pet damages knowing the security deposit they’ve put up is substantial. This provides an incentive to properly keep your unit well maintained, and ensures that the attractiveness and value of the rental home remain consistent. And, if anything goes wrong, you will have sufficient funds to cover the resulting loss caused by the pet.
CONCLUSION
Just like any other opportunity, welcoming pets carries additional risks and responsibilities. If you can accept and manage those risks with the steps outlined above, the benefits of allowing pets can outweigh the burdens associated with running a pet-friendly operation.