{"id":98866,"date":"2019-10-23T17:00:09","date_gmt":"2019-10-23T23:00:09","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=98866"},"modified":"2023-05-15T13:14:55","modified_gmt":"2023-05-15T19:14:55","slug":"allow-pets-in-rental","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/allow-pets-in-rental","title":{"rendered":"Why I Will Always Allow Pets in My Rental Property"},"content":{"rendered":"

I used to be a strict pet-free landlord<\/a>. I followed the same logic any investor might when deciding if my renters would be allowed to keep pets: Pets cause damage. They increase wear and tear, which could negatively affect my bottom line. Therefore, I simply would not allow pets at my properties. <\/span><\/p>\n

But after 15 years of real estate investing, I\u2019ve had a change of heart. And no, it\u2019s not from those puppy dog eyes (pet or human!); it’s because I have come to see pets as a potential income source for my properties. <\/span><\/p>\n

In this article, I will break down the income-producing incentives that tipped the scale toward making my rentals pet-friendly properties. <\/span><\/p>\n

Reduced Vacancy Time<\/h2>\n

Time is money in rental management, and the longer my property sits vacant, the less money it makes. The majority of rental properties<\/a>\u00a0are advertised as \u201cno pets,\u201d according to <\/span>rental search data from Zillow<\/span>. (1<\/a>)\u00a0 This correlates with rental search data from my own software\u2019s database, which found that 27 percent of rental properties in the U.S. advertise \u201cpets OK,\u201d compared with 73 percent advertised as \u201cno pets\u201d\u2014based on a sample size of 61,790 units. (2<\/a>)\u00a0<\/span><\/p>\n

The easiest statistic\u00a0to find regarding pet ownership among renters comes from a <\/span>2014 survey published by Apartments.com. (3<\/a>)<\/span> It claims that 72 percent of renters own pets. More recently, Zillow released its <\/span>2017 Consumer Housing Trends Report<\/span> stating that only 32 percent of renters have pets. (4<\/a>)<\/span><\/p>\n

This research indicates that there is a shortage of pet-friendly properties compared to the number of renters seeking pet-friendly housing. By allowing pets at your rental, you open your tenant pool and increase the desirability of your rental. This leads to shorter vacancy times between tenants.<\/span><\/p>\n

\"\"<\/p>\n

Spend Less Time Seeking Funds to Repair Damage<\/h2>\n

If your state allows it, you have the option to charge an additional pet deposit on top of a standard security deposit from your pet-owning renters. Pet deposits can be used for cleaning a property or repairing damage caused by a pet. <\/span><\/p>\n

Pet deposits offer additional security and allow you to have available funds to cover the cost of pet damage or excessive cleaning. If you only collect a standard security deposit and a pet causes more damage than the deposit will cover, you have to invoice the tenant to cover the cost of cleaning (or repairs) beyond the security deposit. You will then be actively seeking payment from a renter who has moved, and they\u2014or the money\u2014might be hard to track down. <\/span><\/p>\n

Related: <\/em><\/strong>3 Reasons Landlords Should Blacklist Certain Dog Breeds<\/a><\/em><\/p>\n

If this bill goes unpaid, you can either move forward with collections or sue the tenant as your state laws allow. Or, you could eat the cost to avoid prolonging the issue. <\/span><\/p>\n

Regardless, you will either have to spend time or funds dealing with chasing down additional payments for pet-caused damages. Having an additional security deposit limits the possibility of requiring additional money from your tenant.<\/span><\/p>\n

Pet Rent<\/h2>\n

Another option for pet-friendly properties comes in the form of a monthly pet rent. Pet rent is collected along with your tenant\u2019s standard monthly rent and can run anywhere from $10 to $50 a month per pet. Over the course of a year, this pet rent can add an additional $120 to $600 to your rental income.<\/span><\/p>\n

In areas where vacancy rates are low and availability of pet-friendly rentals is even lower, most <\/span>tenants expect to pay extra<\/span> to live with their furry roommates. (5<\/a>)<\/span><\/p>\n

\"\"<\/p>\n

Increased Renewal Rates<\/h2>\n

In general, your pet-owning tenants are more likely to become long-term renters, due to the fact that pet-friendly rentals are more difficult to find. When you build routine rent increases into your lease agreements, these long-term, pet-owning renters are the cream of the crop for an investor.<\/span><\/p>\n

For every renewal, I also find it important to perform regular inspections. This helps identify any pet damage or problem areas that should be addressed before they become more expensive down the line. \u00a0<\/span><\/p>\n

Related:<\/em><\/strong> An Emotional Support Peacock\u2014Really?! How to Navigate the Murky Waters of ESAs as a Landlord<\/a><\/em><\/p>\n

The Legality of Pet-Friendly Properties<\/h2>\n

Make sure you fully understand the pet screening best practices<\/a> and check your state and local laws about increasing deposits and the legality of non-refundable fees. Your lease should have clear language about the types of pets acceptable at the property and what additional rent, fees, or deposits are associated with a pet-friendly rental. (Just remember to get it checked out by a trusted attorney before anyone signs on the dotted line.) I also find it valuable to require renter’s insurance for all tenants, especially for your pet-owning renters.<\/span><\/p>\n

A Special Note About Service Animals, Emotional-Support Animals, and Therapy Animals<\/h3>\n

Your tenants who have service animals or emotional-support animals (ESAs) are protected by the <\/span>American Disabilities Act<\/span> (ADA). As a housing provider, you’re required to make reasonable accommodation for these renters and their animals. <\/span><\/p>\n

Renters with a service animal or an emotional-support animal are exempt from paying an additional pet deposit, pet fee, or monthly pet rent. They will, however, need to provide proper documentation regarding the need for such an animal, as required by the ADA and <\/span>Fair Housing Laws<\/span>.<\/span><\/p>\n

Sources<\/strong><\/p>\n

    \n
  1. https:\/\/www.zillow.com\/or\/pet-friendly\/<\/a><\/li>\n
  2. Data provided by Rentec Direct<\/span><\/li>\n
  3. https:\/\/www.prnewswire.com\/news-releases\/apartmentscom-survey-reveals-pet-ownership-among-renters-at-all-time-high-270864521.html<\/a><\/li>\n
  4. https:\/\/www.zillow.com\/report\/2017\/renters\/typical-american-renter\/<\/a><\/li>\n
  5. https:\/\/money.usnews.com\/money\/blogs\/my-money\/2013\/07\/17\/how-much-should-you-pay-for-a-pet-deposit<\/a><\/li>\n<\/ol>\n

    \"ad-bookstore\"<\/a><\/p>\n

    Do you allow pets in your rentals? Have you had a good experience overall? <\/em><\/p>\n

    Share your thoughts below!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    Property owners and landlords tend to have strong feelings surrounding whether or not they choose to allow pets in their rentals. Here I discuss the income-producing incentives that tipped the scale toward making all of my rental properties pet friendly.<\/p>\n","protected":false},"author":132929,"featured_media":117478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-98866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/98866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/132929"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=98866"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/98866\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/117478"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=98866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=98866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=98866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}