Pros and Cons of Allowing Tenants to Have Pets in Your Property

In today’s rental market, the demand for pet-friendly properties is at an all-time high. According to Forbes Pet Ownership statistics, in 2024, 66% of households in the U.S. own a pet. Thus, landlords are increasingly facing the decision to accommodate furry friends in their rental properties.

This shift reflects a growing trend where tenants prioritize finding homes that welcome their pets as family members. According to a 2021 survey by the American Pet Products Association, pet owners are not just looking for any rental. They are actively seeking properties that understand their needs.

However, allowing pets comes with its own set of challenges and rewards. At the same time, pet-friendly policies can attract a larger pool of potential tenants and command higher rental prices, often up to 20% more than non-pet-friendly listings. Landlords or property managers must also consider the risks of property damage, noise complaints, and increased maintenance costs.

In this article, we’ll delve into the compelling pros and cons of allowing pets in your rental property, providing you with the insights needed to make an informed decision that aligns with your property management goals.

Pros of Allowing Pets in Your Rental Property

Here are the benefits of allowing pets in rental properties:

1. Attract a Larger Pool of Potential Tenants

One of the biggest advantages of making your rental property pet-friendly is the ability to attract a wider range of tenants. As of 2024, according to Forbes statistics, 66% of households in the U.S. own a pet.

This means that many renters are searching for pet-friendly accommodations. By considering applicants’ pet ownership, you can create a larger pool of applicants, especially among younger renters, providing you with a broader selection of potential residents. Thus, it will lead to quicker occupancy and reduced vacancy periods.

Recommeded: Want to know more on how you can attract a larger pool of potential tenants reducing vacancy periods on your rentals? Check out our article How to Minimize Vacancy Rate for Rental Property?

2. Higher Rental Income Potential

Pet-friendly properties often have the potential to command higher rents. Tenants with pets are mostly willing to pay a premium for properties that accommodate their furry friends. You can charge higher monthly rent, pet deposits, or non-refundable pet fees, which can significantly boost rental income. A survey by Zillow found that pet-friendly rentals typically rent for an average of 20% more than non-pet-friendly properties.

3. Longer Tenancy Durations

Pet owners tend to stay longer in pet-friendly rentals due to the difficulty of finding other pet-friendly accommodations. Longer tenancy durations mean fewer turnovers and vacancies and lower costs associated with marketing and preparing the unit for new tenants. According to a study by FIREPAW, pet-friendly rentals experience longer tenant stays, with some landlords reporting up to twice the average tenancy length.

4. Tenant Satisfaction and Retention

Allowing pets can enhance tenant satisfaction and foster community within your property. Pet owners often build strong connections with neighbors through shared pet-related activities, such as dog walking or visiting local parks. A community of satisfied tenants is more likely to take better care of the property and renew their leases, contributing to long-term property value and income.

5. Reduced Competition

In highly competitive rental markets, a pet-friendly policy can set your property apart from others.

How? Many rental listings are increasingly strict and hesitate to allow pets in their properties due to their destructive nature. And that’s why many of them decide to set a no-pet clause in their leases. So, just by making your rental a pet friendly, you position your rental listing one step ahead of those who don’t. This can give you a competitive edge, making your rental property more appealing to a broader range of prospective tenants.

Cons of Allowing Pets in Your Rental Property

Here are the disadvantages of allowing pets in rental properties:

1. Potential for Property Damage

One of the primary concerns when considering a pet-friendly policy is the potential for property damage. Pets can cause damage to flooring, carpets, walls, and outdoor spaces. Pet urine can also create offensive odors or stains that seep through floor into the sub-flooring beneath, requiring deep cleaning or replacement of materials. Certain pets, such as large dogs or multiple pets in a single unit, particularly increase the risk of damage.

2. Noise Complaints and Disturbances

Pets, especially dogs, can cause noise disturbances that may affect other tenants. Barking, howling, or other noises can lead to complaints, creating friction between tenants and potentially leading to lease violations or early terminations. Noise complaints can also negatively impact the overall appeal of your property, especially in multi-unit buildings where noise travels easily.

3. Increased Maintenance and Cleaning Costs

Even well-behaved pets can increase the wear and tear on a rental property. Regular maintenance tasks, such as deep cleaning carpets or repairing scratched floors, may be needed more frequently in pet-friendly rentals. Additionally, you may need to invest in pest control services to prevent or manage pet-related pests like fleas or ticks.

4. Liability Issues

Allowing pets introduces potential liability concerns related to pet behavior, particularly with dog bites or other aggressive actions. Depending on local laws and the lease agreement, you could be held liable for injuries caused by a tenant’s pet. So, to protect yourself, it’s crucial to make sure your tenant have renters insurance with pet liability coverage. Including a clear pet-specific clauses in the lease also helps to avoid confusion later.

5. Allergies and Health Concerns

Pets can cause allergic reactions for some tenants or visitors. If a tenant with allergies moves into a unit that previously housed pets, it may require additional cleaning or even special treatments to remove pet dander and allergens. This can increase turnover costs and potentially limit the tenant pool to those without pet allergies.

Related Read: Can a landlord deny an emotional support animal? With certain circumstances, there are specific legal guidelines to consider.

Balancing the Pros and Cons: Strategies for Pet-Friendly Rentals

To successfully manage a pet-friendly rental property, you should consider implementing strategies to minimize potential drawbacks while maximizing the benefits.

1. Establish Clear Pet Policies

Clear and comprehensive pet policies are essential for managing a pet-friendly rental property. These policies should outline the types and sizes of pets allowed, the number of pets permitted, and any breed restrictions. You should also specify behavioral expectations, such as no excessive barking or destructive behavior, to ensure a peaceful living environment for all tenants.

2. Require Pet Deposits and Fees

It is a common practice in the rental industry to require pet deposit or pet fees to cover potential damage caused by pets. While pet deposits, usually are refundable if no damage occurs, you can set pet fees as non-refundable to cover additional wear and tear. Most importantly, ensure these amounts are sufficient to cover potential costs and comply with local laws and regulations.

3. Implement Tenant Screening Procedures

Before pet, screening the tenant should be your first priority.

Why? A thorough tenant screening helps you identify whether a tenant is a good fit for your property or not. It helps you to uncover prospective tenant’s history and overall responsibility. From this you can take a guess about their responsibility as a pet owner.

While screening, also request your tenant to provide previous landlord references about their pet’s behaviour and care. If found anything bad or suspicious then it a red flag. Finally, try to meet the pet along with the tenant and verify yourself if the pet is well behaved, if possible.

4. Require Renters Insurance with Pet Liability Coverage

Mandate your tenants obtain renters insurance that includes liability coverage for pet-related incidents. This coverage ensures that if a tenant’s pet causes injury or property damage, the insurance policy will cover medical expenses, legal fees, or repair costs. Basically, this provides an extra layer of financial protection, helping you to manage risks while maintaining a pet-friendly rental policy.

5. Conduct Regular Inspections

Regular property inspections can help identify potential issues early and ensure that pet owners comply with the lease agreement and pet policies. Inspections provide an opportunity to address any damage or cleanliness concerns before they become major problems, helping to maintain the property’s condition and value.

6. Include Pet Clauses in Lease Agreements

Including specific pet clauses in lease agreements can provide legal protection and clarify expectations for pet owners. These clauses should detail the pet policies, any fees or deposits, and the consequences of non-compliance. Having clear, legally binding terms helps protect the landlord’s interests and provides a framework for resolving disputes.

7. Consider Pet-Friendly Upgrades

Making pet-friendly upgrades can help minimize potential property damage risks and appeal to pet owners. For example, installing durable flooring, such as tile or vinyl, can reduce the risk of scratches and stains. Providing designated pet areas, such as fenced yards or pet stations, can also enhance the property’s appeal and reduce wear and tear on shared spaces. Additionally, these upgrades can attract responsible tenants who are more likely to take care of the property.

Recommended: Understanding the legal framework around pets, including Oklahoma Service Dog Laws, can help landlords navigate their responsibilities.

Conclusion: Is a Pet-Friendly Rental Property Right for You?

If you’re considering a pet-friendly policy for your rental property or need more information, consult with property management professionals at OKC Home Realty Services, your trusted partner in property management in Oklahoma City. We can provide expert guidance and support to ensure your property remains a desirable and profitable investment.

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