Owner of Rhino Realty Property Management and Rhino Realty B&B, entrepreneur, investor, advisor, author and speaker.
Millennials and Gen Z make up a large part of the rental market and make up the highest percentage of pet owners. Accommodating pets can attract a wider tenant pool, but there are still several factors to consider. There are myriad ways to handle pets in rental properties. The key is to protect your property while still attracting quality tenants and creating a welcoming place for them to live.
Should Pets Be Allowed In Rentals?
Consider the target demographic of your rental units. If your properties cater to families or younger people or if you’re operating in a pet-friendly area, allowing pets could be a significant draw. It’s important to do your research. First, consider if prohibiting pets will limit your potential tenant pool.
If pet ownership is important to your target market, it could be beneficial to find a way to allow tenants to have pets.
Allowing pets requires setting clear expectations. Clearly outline the rules around pet ownership for tenants in your building. This policy should cover issues such as noise, waste disposal and property damage. The pet policy should be a part of your lease so that all tenants understand the consequences of violating it.
Charging Extra Rent
Charging extra rent for tenants with pets is a common practice. This can be an easy way to offset the wear and tear pets can cause on the property.
The challenge here is determining how much extra rent to charge. Research the local rental market to find out what comparable pet-friendly units cost. It’s also important to calculate how much it would cost to repair any potential wear and tear or damage. Using both of these numbers, you can start to determine how much additional rent makes sense.
Pet rent is usually 1%–3% of monthly rent and is added on to a tenant’s rent payment. Keep in mind that some jurisdictions have laws that limit the amount of extra rent you can charge for pets. Make sure to research and adhere to these regulations to avoid legal complications.
If, after crunching the numbers, the pet rent won’t cover the wear and tear, combining pet rent with another fee might be an option.
Requiring A Pet Deposit
Requiring a pet deposit can provide an extra layer of security against potential damage caused by pets. Use a pet deposit to cover cleaning or repairs related to pets after the tenant moves out. It’s essential to differentiate between a pet deposit and a standard security deposit. This ensures that the tenant’s security deposit remains protected if no pet-related damage occurs.
Prospective tenants may be more willing to pay a higher pet deposit when they know it could be refunded.
Again, some states impose restrictions on the total amount of security deposits a landlord can charge. Before implementing a pet deposit policy, consult local laws to ensure compliance.
Finding A Balance With Breed Restrictions
The question of whether to impose breed restrictions is a sensitive one. Banning specific breeds is often met with backlash from pet owners and animal advocacy groups. So, you should exercise caution with your policies around breed restrictions.
In addition to alienating potentially good renters, restricting certain breeds doesn’t always work. A dog’s temperament and behavior can be heavily dependent on training. It can be more effective to require all prospective tenants who have dogs to provide proof of training or a recommendation letter from a veterinarian.
Instead of focusing on specific breeds, consider adopting a behavior-based assessment approach. During the application process, ask prospective tenants to provide references from previous landlords. Consider asking for evidence of the pet’s training and behavior history. This approach allows you to base decisions on individual behavior rather than breed stereotypes.
Implementing Pet-Friendly Amenities
Embracing a pet-friendly atmosphere can set your rental properties apart from the competition. Consider offering amenities such as designated pet play areas, pet waste stations and convenient access to parks to attract pet owners.
If your property has multiple buildings or wings, the pet-friendly apartments can be in one building and the pet-free apartments in another. This can help mitigate complaints about noise, smells and allergies.
Enforcing Pet Policies
Enforcing pet policies is crucial for maintaining a harmonious living environment for your tenants. Regular property inspections can help identify any pet-related issues before they escalate. If a tenant violates the pet policy, address the situation promptly and follow the protocols outlined in the lease agreement.
In cases where tenants are uncooperative or pets cause severe disturbances, an eviction might be necessary as a last resort. Consult legal counsel and ensure that you follow all legal procedures to avoid any potential legal mistakes.
Handling pets in rental properties requires a balanced approach. By implementing clear policies and guidelines, property managers can allow pets and tap into a wider tenant pool. Charging reasonable extra rent and implementing pet deposits can provide financial protection. And instead of breed restrictions, behavior-based assessments can help ensure the pet owners you rent to are responsible. Remember, a well-thought-out pet policy can support your long-term success in the rental property market.
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