Rental properties can be a fantastic investment. They consistently outperform inflation and other "safe" investments, including stocks.
Renting out residential properties can be a lot of work, though. It demands a great deal of decision-making, which can impact the return on your investment. This includes whether to allow pets in a rental property.
There are many advantages and a few drawbacks to whichever option you choose. What is best depends on different factors and how they relate to your unique circumstances. This includes the specific rental market where you live.
The information below will help you weigh the pros and cons of allowing pets at your rental properties. Keep reading to determine which option is the right choice for you.
Advantages of Allowing Pets
The biggest advantage of allowing pets is the potential to attract tenants from a larger pool. Approximately 70 percent of all American households own a pet. This can make it easier to keep rentals filled.
Another advantage of allowing pets in your rental is the potential for more income. You or your property management company will want to charge pet deposits to cover any minor damage that does occur.
There is little downside to this. Pet owners come to expect fees from landlords. Most consider their pets a part of the family, so they probably see the fee as a necessary expense of owning a pet.
A final advantage of allowing pets in a rental property is that tenants with pets tend to stay longer in one place. This may be attributable to there being fewer rental options if you have a pet. Households with pets may also be more settled in life.
Whatever the reason, tenants who stick around translate to fewer gaps in rental income for you.
Disadvantages of Allowing Pets
The main disadvantage of leasing to pet owners is the prospect of damage to your property. Pets can scratch floors and chew up carpets and furnishings. They can have accidents that stain flooring.
Pets can leave behind odors and hair that are difficult to clean up. This can happen to even the most attentive pet owners and is something you as a landlord should consider.
Another drawback of allowing pets is disruption to other residents or common areas. Barking dogs or owners that do not clean up after their pets can diminish the quality of life for others, even if these things aren't a violation of lease rules.
A related downside to consider is the potential for pets to harm other tenants. While landlords are generally not responsible for tenants who lose control of their pets, you should discuss protections with your insurance provider and property management company.
Learn More About Managing Pets in a Rental Property
Now that you understand the pros and cons of allowing pets in a rental property, you can determine which is the best option for you. Making an informed pet-policy decision is the best thing you can do to optimize the benefits and address any potential challenges.
PMI Destination Properties is a full-service property management company. We offer everything from marketing and tenant screening to rent collection, grounds maintenance, and accounting and reporting services. Reach out to us today to learn more.
