Research indicates 50-75% of shopping tenants are searching for rentals that are pet-friendly. This means homes listed as “no pet” rentals have a much smaller pool of prospective tenants to choose from. A good portion of those 50%-75% that you are excluding are well-qualified prospects too. So excluding pet owners completely, could be a HUGE mistake that ultiimately results in a loss of unrealized rental income.
These days, tenants shopping for rentals rely almost solely on popular home search engines sites such as Zillow to find a rental that meets all their preferences and needs. If 50-75% of those shoppers have selected “pet friendly” homes in their search engine perameters and your home is listed as “no pets,” they are unlikely to ever even see your listing.
Statistically tenants with pets have a high level of commitment to their home and community. A 2005 study entitled “Companion Animal Renters and Pet-Friendly Housing in the U.S.” indicates that landlords that don’t take pets are greatly disadvantaged, because when they offer pet-friendly rentals, profits increase. We see it all the time at our company.
A 2011 analysis of the condo market in the Journal of Real Estate Finance and Economics found that pet-friendly landlords enjoy an 11.6% rental premium over landlords who don’t allow pets. Below are some figures from various studies that may help you decide what is right for your home and wallet!
Tenants in pet-friendly homes stay an average of 46 months compared to 18 months for tenants in no-pet homes. Tenants that stay longer cost you less money and statistically accept fees associated with the privilege of owning a pet. Ever heard of pet rent? That’s additional income.
Rentals prohibiting pets have higher vacancy rates and may rent slower and lower due to having a smaller tenant pool. When a home is not renting, property managers recommend lowering price to increase interest. That’s never popular.
Pet-friendly housing can be in short supply at times, so when the rental market is slow, you can increase your home’s marketability simply by updating your listing to read that you are open to pets. Owners can consider accepting pets on a case-by-case for well-qualified tenants ONLY. That means you can be super-picky about accepting an application from a pet owner rather than hold out completely which opens up your potential pool of well-qualified tenants. You can even require higher qualifications for pet owners. Look over landlord references, income, credit then decide.
Don’t need a speedy rental or premium rents? Stop reading here.
85% of landlords permitting pets reported pet-related damage at some point, but damage averaged only $430. This is far less than typical combined deposits (pet and security) and Virginia landlords are permitted to use security deposit AND pet deposits to cover pet damages as well as damages not caused by pets as well. This means that in most cases, landlords can simply subtract the damage from deposits and experience no actual loss while reaping the benefit of speedier rentals at higher rates to tenants who statistically will stay the longest.
It was found that there is little, if any, difference in damage between tenants with and without pets. Remember, damage can occur with any tenant, even if you don’t accept pets. It’s a risk being an investor. The key is to rent to ONLY well-qualified tenants which reduces risk altogether. That’s what deposits are for. ALSO – Landlords open to pet ownership are LESS likely to have tenants with undisclosed pets living at the home versus those that forbid them.
Don’t want puppies, don’t take ’em.
Accepting pets doesn’t mean that you accept any old pet and owner that comes along. Breed restrictions? Of course you can. Don’t want puppies? Don’t take ’em. Don’t like cats? Accept dogs-only.
Increased security – The presence of dogs and people spending more time at home, contributes to fewer security related issues. Less chance of insurance claims for owner and tenant = win/win! How much is your insurance deductible?
Sad Statistics There is a shortage of pet-friendly landlords. Studies find that 29% of pet relinquishments to animal shelters are because of pet-friendly housing shortages.
Myths – Think that small pets are best? Toy and miniature breeds can be harder to train and be more yappy.
Many larger breed dogs require more sleep and can prefer rest over running amuck. Think multiples are a bad? Not necessarily. Pets form bonds, sooth and entertain each other which gives them less free time to cause mischief. You also increase your pet deposit amount.
What happens if I still don’t want to accept pets? Don’t. This article is designed to inform so that you can make the best decision for your investment strategy. If you don’t want pets in your home, and vacancy or financial loss is not a big concern then hold out on pets. But if you (like most of us) have monthly housing expenses and vacancy loss is a frightening concept, consider the statistics then decide how to market your home to renters.
The fact is, landlords can end up having to take animals anyway, if a prospective/qualifying tenant has a service animal or an ESA (Emotional Support Animal.) Landlords may not refuse applicants with a properly credentialed qualifying animal needed for a disabilty.
Summary
Homes rent faster and higher when open to pets I Pet owners move less often saving owners turnover costs I Pet owners expect to pay higher rent/fees I Pet owners are generally responsible I Landlords can be super-picky about applicants & pet acceptance I Damage is minimal I Virginia tenant deposits can apply to ANY damages I Accepting pets may be less risky than not accepting pets I You make the pet rules I Damage likelihood is not increased for tenants w/pets I Not accepting pets at all can lead to vacancy loss
Like always, if you have questions, we’ve got answers! Mary K. @ Stephanie Clark Property Management
Tags: Landlord, Marketabilty, Pet Friendly, Searches, Tenant, Virginia