One of the interesting conversations I have with property owners is about pets and whether they should accept them. It’s a hot topic, so I thought I’d lay out the pros and cons and some of the things you can do to offset the potential risk of accepting pets.
60% of Americans have pets!
To get started, you need to understand that approximately 60% of Americans have pets. If you decide not to accept pets, you are eliminating almost two-thirds of the population as potential renters. Also, if you have a high-end single-family home, that number can be as high as 70% or 75% of families that are going to have pets.
If you own lower-end properties or student housing, that percentage could be lower. But either way, if you don’t accept pets, a large part of the population is not eligible to rent your property.
Pet owners tend to stay in apartments longer!
Pet owners tend to be very good renters, as they tend to stay longer. Because it is difficult for the pet owner to move or find another place that accepts pets, they will stay in their current property for much longer. That obviously helps with turnover and repair costs, so it’s better to have longer-term tenants.
Pet owners tend to make more money and make better tenants
Pet owners tend to earn more money than non-pet renters. Since pet owners pay for food, vet bills, and all the other things pet owners buy, this indicates a higher disposable income than non-pet owners. The higher income should allow them to pay higher rents and be able to offset any financial problems in the short term.
Collect Additional Rent and Security Deposit
You should make more money accepting pets. We charge an additional $25 per month, per pet. If tenants have two pets, we would charge an additional $50 per month of rental income. We also charge an additional $300 per pet in security deposit. It is refundable if the place is perfect when the tenants move out, but if the pet causes any damage, then we have additional money to make the repairs. Also, if the carpets were not clean when you left, one of the things we will use the $300 security money for is to clean and wash the carpets.
Use the Pet Addendums to Design Pet Rules and Regulations!
We recommend that tenants sign a comprehensive pet addendum. The pet addendum lays out all the rules and regulations of having a pet and the ramifications of not caring for it.
Do not accept aggressive dogs
We do not accept aggressive dogs. If tenants have a bulldog or other aggressive dogs, we do not recommend accepting them. Also, I would not accept dogs that are over 50 or 60 pounds as they add a lot of additional risk to your building and other tenants or neighbors. One reason for this is that most property insurance companies will void your insurance if you accept large or aggressive dogs.
Professional carpet cleaning once tenants move out!
We require pet-owning tenants to professionally shampoo their carpets when they leave. They must pay for the cleaning and provide us with a receipt that the cleaning was done. If for some reason they didn’t, again, as I mentioned above, we would use that extra $300 in security to have the carpets professionally washed and cleaned.
Hardwood floors and pets?
One of the main concerns is the hardwood floors. If you have a property with hardwood floors, accepting pets is a real risk factor. We recommend mitigating the risk by requiring carpeting over some or all hardwood floors. But either way, if you have hardwood floors, that’s an added risk and make sure it’s worth it to have a dog in property with hardwood floors.
Service animals are NOT pets!
It is very important that everyone understands that a service animal is not a pet. If you decide not to accept pets, that’s fine. But if the tenant has a service animal, he cannot decide to agree to turn away a tenant based on a service animal. So just make sure you are aware that as the owner, a service animal is not a pet.