Allowing pets in a rental property can be a difficult decision for landlords. You can increase your profits but expose yourself to a whole new set of issues.
There are currently about 80 million Americans who own either a dog or a cat.
As a property owner, you need to weigh the pros and cons of having pets around. Luckily, our guide will lay both out for you.
One of the biggest pros of allowing pets in a rental property is that it expands your tenant pool. Given the previous statistic, it opens up the door to millions of more people.
You can also take advantage of this and charge an extra fee for pets. Most pet owners are more than willing to pay this, and it is a reasonable expectation for pets in an apartment building.
As a landlord, you also think about how to retain tenants. Allowing pets helps with this because pets are likely to make tenants happier living there.
Studies show that 86% of pet owners say that pets have had a positive impact on their mental health. This can lift someone's mood, and a tenant is more likely to consider this a home rather than just an apartment. As a result, you can keep people in your property longer and lower your vacancy rate.
If you want to increase the odds of filling your rental property and keeping people there, pets are a great way to do just that.
While there are some great pros to allowing pets in a rental property, you need to keep in mind that there are disadvantages.
One of the big ones comes from the potential liability that pets can cause. An example can be if a dog decides to bite another tenant in your building. That can open up potential legal issues for you if you are not careful.
There is also an increased chance of rental property damage because of pets. This can come from odor, ripping up carpets, scratching walls, biting furniture, and more.
As a result, you may need more maintenance to fix this damage. That could end up costing you a lot of money that a pet fee may not cover. Sometimes, it could even mean replacing these items entirely.
Other tenants without pets also may not like living in an area with pets nearby. They could be afraid of animals or severely allergic to certain types of animals. If enough of your current tenants feel this way, it may cause them to move out of your apartment building.
Should You Allow Pets in a Rental Property?
So, should you allow pets in a rental property? There are clear pros and cons discussed above where you can make an informed decision. At the end of the day, it comes down to what cons you can deal with and if you can maximize the pros.
If you need help reaching this decision, you should talk this over with PMI Flatirons Group. We are a real estate asset management company that can review your property and help you make the best decision.
Message us here to learn more about this in Boulder, Colorado.