Would you choose a family member over a Hammond rental property? Chances are, the answer is no. Many pet owners will say the same thing.
After all, about half of US pet owners consider their pets a part of the family. If you don't allow pets in a rental property, you could miss the chance to attract renters.
Need to weigh the pros and cons of allowing pets in your rentals? Read on to learn more!
Pro: Increased Tenant Retention
Finding local rental properties that allow pets isn't always easy. Once a pet owner finds a pet-friendly rental, they'll likely want to stay.
Allowing pets in your rentals could improve your tenant retention rate. Retaining renters can improve your occupancy rate. Reaching full occupancy can maximize your profitability.
You can save money on vacancies, marketing units, and tenant screening. Instead, you'll have peace of mind retaining renters you know and trust.
Con: Potential Property Maintenance
Unfortunately, not every pet is well-trained. You'll likely have to worry about property maintenance costs if you allow pets.
For example, cats and dogs may:
- Scratch on flooring
- Urinate or throw up on carpets
- Chew on wood fixtures and doorways
- Destroy the landscaping
Before allowing pets, draft a tenancy agreement. Outline your expectations for pet owners. Make sure they're aware of what damages will come out of their security deposit.
Pro: Higher Rental Income
Your rental rate will depend on market trends. However, you could generate more rental income if you allow pets.
For example, you can charge a pet fee, pet rent, and pet deposit.
The fee is a one-time, non-refundable charge. It covers costs associated with allowing pets in the property, including damages.
The rent is a monthly fee. It can vary between $25 and $100 per pet.
The pet deposit is a one-time, refundable charge. It can cover damage caused by pets.
Con: Liability Concerns
Allowing pets could pose a risk of dog attacks and bite injuries. This could increase your liability as a landlord.
Before pet owners move in, require them to have insurance coverage. This will protect your best interests if there's an incident.
Pro: Larger Tenant Pool
About 62 million households own dogs, with another 37 million owning cats. If you decide to allow pets, you'll open your tenant pool to these renters. Increasing your tenant pool can increase your occupancy rate.
Con: Tenant Complaints
Neighbors may complain about smells, noise, or interactions with pets. You may notice an increase in conflicts or tension within the community.
Consider hiring a property management company. A property manager can handle these disputes on your behalf. They'll resolve these disputes to increase tenant satisfaction rates.
Consider Allowing Pets in a Rental Property
Don't rush to decide if you'll allow pets in a rental property. Instead, review the pros and cons with an industry professional. With help, you can make an informed choice based on your needs and goals.
Our team at PMI NWI has 20 years of experience supporting property owners like you. We'll use proven strategies to maximize your earning potential. Contact us today for help making this choice!
