Opening your rental property to tenants who own pets can present both advantages and risks. You need to weigh the impact and determine whether being a pet-friendly rental is suitable for you. As a property owner, if you do accommodate renters with pets you need to include a pet policy in your leasing agreement.
This post provides information to consider when deciding whether or not to welcome tenants with pets in your rental space.
Advantages of a Pet-Friendly Rental
Initially, landlords may be opposed to allowing pets in their rental properties, however, it’s best to look at the benefits that you can gain as a rental owner.
Here are wonderful reasons to permit tenants with pets in your rental unit:
Opportunity to Increase Income
Taking care of a pet requires a good measure of disposable income. Pet owners spend on pet expenses thus they have the money to pay for a pet deposit, pet fee, or pet rent. As a landlord, you can earn more income simply from welcoming pets to your rental property.
Ensure that whatever you charge complies with New Jersey’s landlord-tenant laws and other leasing laws.
Gain Happy Tenants
Pets can be great stress relievers. There’s a reason that people have companion animals. Welcoming pets in your rental creates a more cozy atmosphere. It makes tenants happy ensuring they’ll stay longer in your rental space.
Expanded Pool of Prospects
Given that the popularity of pet ownership, it’s logical to assume that there will be even more pet owners looking for pet-friendly rentals. If you decide to open up your property to tenants with pets, you gain more prospects. When you have more options, you’re able to choose more qualified renters.
Scoring Long-Term Tenants
Not all rentals are friendly to pet owners so tenants with pets tend to stick around in one rental. Pet owners also value location familiarity for their pets’ convenience. This is a benefit to the landlord since having long-term renters means steady earnings.
More Responsible Tenants
Caring for a pet is a serious commitment. You have to handle vet visits and scheduled feeding and regular exercise. Welcoming a renter with this degree of responsibility makes it easier to trust that they’ll take care of your rental, too. As someone who’s used to fulfilling their duty as pet owners, it can be easier for them to perform their duty as a good tenant.
Assign Higher Rental Rate
Due to the risks involved in permitting tenants with pets, most rentals charge extra to pet owners. If you’re one of the few properties that accommodate pets then setting a higher rental fee is acceptable. Most pet owners already expect to pay extra for the opportunity to bring in pets in the rental homes.
Once again it’s important to ensure that you’re complying with local and state rental laws before you make changes to your rental prices.
Risks of Having a Pet-Friendly Rental
It’s realistic to say that there are risks that come with renting to tenants with pets. However, these can be manageable given the right contingency plans.
Here are some issues you might run into when welcoming renters with pets:
Property Damage
Having pets around means facing a measure of damage. They can chew a lot of things such as carpets and wooden furniture. They also have a tendency to scratch doors and floors out of boredom or playfulness.
Potential Neighborhood Disturbance
Animals can make noises and cause a ruckus. You might find yourself facing neighbors’ complaints about barking for instance. If you have an apartment complex, a tenant that lives below one unit may complain about pets running around upstairs.
Possible Injuries
When animals are threatened, undisciplined, or triggered somehow, they can end up injuring people and other animals. It’s important to entertain this possibility and know what to do when this happens.
Encountering Pet Odors
Pets can leave behind odors. If there are common areas within your rentals, for example, other tenants may complain about the smell left by pets.
Remaining Compliant to the Fair Housing Laws
You might not want to be a pet-friendly rental, but under the Fair Housing Laws, people with disabilities are entitled to having an assistance animal. These animals are not considered pets. So even if you have a clear no-pet policy in the leasing agreement, you still can’t turn down those renters who have service dogs.
Reviewing Your Insurance Coverage
When accommodating tenants with pets, take time to check your insurance policy’s liability coverage. It’s best to be prepared rather than find out about any limitations when you’re facing injuries caused by a pet. Some insurance companies may have strict policies in regards to particular pet breeds. You might end up shouldering the cost of medical emergencies caused by pets.
Attaching a Pet Policy in a Leasing Agreement
Make your leasing contract clear and specific when it comes to the subject of pets. Add a pet addendum. State whether you permit pets in your rental property or not to prevent confusion. Tenants must understand that consequences should they violate the terms of the signed agreement.
Bottom Line
Becoming a pet-friendly rental means examining all angles of the decision. While there are risks associated with renting to tenants with pets, closing all possibilities to welcoming pets can also cost you in terms of maximizing income.
If you need further help making this decision or would like assistance in other aspects of property management consider the services of Lone Eagle Management!