Key Takeaways:
- Allowing pets can expand your applicant pool, helping you attract qualified tenants faster and reduce vacancy periods.
- Pet-friendly rentals often experience higher tenant retention, leading to lower turnover costs and more consistent rental income.
- Pet deposits, monthly pet rent, and other permitted fees can help offset maintenance expenses while increasing revenue potential.
- A well-managed pet-friendly policy can give your rental a competitive edge and improve long-term occupancy without sacrificing tenant quality.
The vast majority of landlords have traditionally viewed animal companionship as a liability rather than an asset due to the many issues that can arise from owning a pet.
Many landlords feel the risk of scratched floors, stained carpets, excessive barking, and excessive complaints/inquiries from other tenants far outweighs any benefit of having a pet-friendly rental unit.
While some of the concerns above may be valid, we have seen an evolution within the rental marketplace over the last few years. An increasing percentage of households now have one or more pets, and many potential tenants use access to animal-friendly rental units as one criterion when choosing a new home.
Keyrenter Jacksonville helps you be aware of the benefits, landlords can make decisions that best meet both their financial goals and property management strategies.
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Increased Number of Applicants
A major advantage of allowing pets in rental units is that the number of potential applicants increases significantly. Landlords will have the opportunity to select from more total applicants when they allow for more total applicant types.
Because a landlord in Florida who rents to pet-owners has access to more potential renters, they will have more flexibility in screening applicants.
As a result of having more potential tenants, landlords will also be able to make better decisions about which applicants to choose based on the following screening criteria: financial situation, previous tenancy history, employment consistency, and reference checks.
A larger pool of potential applicants generally leads to the following benefits: more competitive applications, higher-quality tenants, and quicker lease signings, resulting in higher occupancy.
Shorter Vacancies
One of the biggest expenses for landlords who own rental properties is the cost of vacancy. Even though there is no tenant in a rental unit, landlords continue to pay the costs associated with owning the property (mortgage, property tax, insurance, utilities, maintenance, etc.) but receive no rental income.
Properties that allow pets usually have less time unoccupied than traditional rentals because they appeal to a larger number of potential renters. The availability of pet-friendly housing can be limited.
Therefore, potential qualified applicants will often apply for these types of properties right away. A reduction in vacancy of even a few weeks per year could directly impact your overall rental revenue.
Higher Tenant Retention
Tenant turnover is an expensive process. When an existing tenant leaves (or an owner-tenant chooses to move), the expenses associated with preparing a rental unit for the new tenant can be substantial.
As an example, the costs incurred to prepare an apartment can include costs associated with:
- Cleaning.
- Repair.
- Advertising the property.
- Showing the property to prospective renters.
- Screening tenants.
- Preparing the rental lease.
As it is easy to see, these costs will quickly accumulate. For instance, a pet owner is unlikely to move from an apartment in Nocatee they like, because moving with pets involves additional logistical and financial obstacles.
Locating another suitable pet-friendly rental unit may involve a time-consuming and costly search. As a result, pet owners tend to prefer stable housing arrangements, and they may be more inclined to renew their leases when given the opportunity.
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Increased Stability of Cash Flow
The stability of occupancy directly contributes to the stability of cash flow. When leases are renewed, landlords have reduced uncertainty related to the potential vacancy that would occur from having to find a replacement tenant, thus reducing the negative impact of lost or delayed rent as a result of tenant turnover.
Because of the high demand for pet-friendly housing, tenants often will remain in place as opposed to going through another house-hunting process when they find a suitable pet-friendly property.
As such, when a landlord can maintain continuous occupancy within their properties, they can invest time, effort, and capital into improving their properties over the long term, rather than spending money and time on multiple turnover activities.
Generating New Sources of Income
Many landlords implement pet fees to assist them with their expenses for future maintenance related to tenant pet ownership. Depending upon the local and state laws, the types of fees that landlords may implement include:
- Pet deposits.
- Non-refundable pet fees.
- Monthly pet rents.
These fees can potentially add additional revenue to help landlords cover some of the costs associated with:
- Deep cleaning.
- Landscaping.
- Minor repairs.
- Floor refinishing.
- Maintenance of common areas.
Income derived from pets is not only profit, it can also help to offset some of the increased costs incurred due to the added responsibilities of owning a pet when renting in a pet-friendly environment.
Competition Grows Stronger
The rental marketplace is very competitive, and as data from other states show; the addition of a flexible, non-discriminatory pet policy to an offering that is similar to other offerings will often be the primary determining factor in a decision for a renter.
The availability of pet-friendly housing can allow property owners to offer something other than just the price of the rental to differentiate themselves from other properties with similar floor plans and amenities.
By offering pet-friendly rental options, property owners will be able to reduce the amount of promotional activity needed to entice tenants.
Renting to a Responsible Tenant
Pet owners are often stereotyped as risky tenants; however, many pet owners will likely have characteristics that a landlord may value: they are often employed at a stable company, will typically have consistent income, have an interest in long-term housing, have an organized daily routine, and have a commitment to preserving the property.
When moving with pets, there is additional planning and expense associated with the move. Therefore, many pet owners have more motivation to remain in a stable housing situation. Pet ownership should not be the only consideration when reviewing applications; all applicants should be reviewed as individual circumstances warrant.
Bottom Line
By providing an opportunity to accept responsible pet owners, landlords will have more choices for tenants, experience shorter periods of time vacant, achieve a higher level of retention of their tenants, and increase the overall competitiveness of their rental property.
This will result in consistency of occupancy, greater regularity of rental income, and higher total return on their investment over time. Keyrenter Jacksonville helps you through every step of the tenant placement process, making sure you secure the most responsible tenants with pets.