One of my short term rentals was pet friendly. I had three at the time all in the same area, and the pet friendly home did have a lower vacancy rate compared to the others. There was more wear and tear on the furniture though... and sometimes deeper cleaning required.
Only horror story is a guest brought a dog who chewed up the legs of some furniture. They were charged for the damages.
I only allowed dogs. Cats are no good because some people are very allergic. If you have a guest stay with a cat, that'll end up being a miserable experience for the next guest if they have allergies.
We are 95%+ pet friendly portfolio wide, and I am 100% pet friendly on the ones I own.
I forget the exact stat but it is something like 50% of people travel with pets. Especially in this more competitive landscape you do not want to turn people away.
If this is a straight investment I cannot think of any reason not to. You will have lower vacancy, and can charge fees. There will be more wear and tear and occasional damages but you can usually recover them from guests and the extra money you make will more than cover it.
About 50% of our guests bring their dogs. It's been a positive experience over the years. However, accepting a cat once didn't work out so well. Dogs only now. ;-)
We offer milk bones, tennis balls and dog waste bags.
Guests sign rental agreement with all the dog rules, it's included with check in notes, also shared in guest welcome book and guests know they can contact me any time with questions.
These guests have been very respectful or we would have stopped long ago.
Pets are more dangerous when they are in the property long-term. I have bought many houses where the pet smell was basically impossible to be removed without removing the drywall. If you regulate the weight and number of pets, you should be fine.
I haven't really heard of any horror stories and many actually cater to pets by providing pet items for guests. You can make some extra money by charging a pet fee which guests now expect and are willing to pay. The worst that can happen is your cleaner may have extra cleaning to do, but that is why you would charge extra for a pet. I would suggest limiting the size of the dog and how many stay at the property, and definitely no cats! My father and sister are very allergic to cats and wouldn't even be able to stay at the property if a cat had been there previously. That is no joke for the next guest to experience if they are also allergic to cats!
We use our STR so we don't allow it (because we have a dog). We allow pets in all of our LTRs but none of them are furnished, none of them have carpeting or other soft surfaces, and we have a lawn care company that cuts all lawns and reports properties where clean up is not taking place. In my STR I don't have a cleaning crew that is going to pick up dog waste in the yard and I have a lot of carpeting, and of course all of the furniture.
I would make some extra money by allowing pets but the tradeoff is not worth it to me. If the property were strictly an investment - ie I never used it - I would harden it and allow pets for the extra funds.