Key Takeaways
Renting to tenants with pets can increase income potential through pet fees and attract responsible, long-term renters.
Allowing pets in a rental comes with risks like property damage, noise complaints, and pet-related injuries, but these can be mitigated with proper screening and lease agreements.
Landlords must comply with the Fair Housing Act, review insurance policies, and include a pet addendum in the lease to effectively manage a pet-friendly rental.
As a landlord, you need to decide whether or not to allow pets into your rental property. The decision can have a major impact your return on investment. In today’s blog by Adaptive Realty, you’ll learn the pros and cons of renting to tenants with pets.
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Pros of Making your Rental Pet-Friendly
The following are the benefits of making your rental pet-friendly:
Rent to a Quality Tenant
By making your rental appealing to a large pool of prospects, you can maximize your chances of landing quality tenants. And by renting out your apartment to a quality tenant, you can expect timely rent payments, a cared for premises, and multiple lease renewals.
You Can Earn More Income
Allowing pets into your property can open up an extra income source for you. You may be able to charge pet fees, deposits, or a monthly pet rent. The good news is that pet owners usually earn more than renters without pets. This is because pet owners must afford pet-related expenses like food, vet care, and supplies, indicating a higher spending capacity.
Be that as it may, ensure that whatever you charge complies with applicable California rental laws. In California, for instance, landlords can charge a pet deposit, except for service dogs and emotional support animals. The total security deposit amount, however, must not exceed the equivalent of one month’s rent.
Score Long-Term Tenants
This is yet another reason why you should consider renting to tenants with pets. Tenants usually have fewer options when it comes to pet-friendly rentals. As such, once they find one, they usually tend to stick around for many months. As a landlord, long-term tenants can be a huge boost to your return on investment.
Rent to Responsible Tenants
Caring for a pet requires a serious degree of commitment. You can also trust that the pet owner will have the same level of responsibility toward your rental. You can expect them to, among other things, care for the rental, take care of small repairs and maintenance, and report issues on time. What's more, if their happy with their rental, they'll be even more likely to renew their lease.
Charge Renters More
Renting to tenants with pets comes with certain risks. And for this reason, you may be entitled to charge pet owners more rent. Please note, however, that you must abide by the Fair Housing Act in this regard.
Cons of Making your Rental Pet-Friendly
Certain risks come with making a rental pet-friendly. However, you can easily manage them once you have the right contingency plans. The following are some of the disadvantages you can face by making your rental pet-friendly:
Property Damage
Renting to tenants with pets can expose your property to a certain degree of damage. Pets can cause damage to hardwood flooring and tear apart carpets and rugs. Other issues can include damage to the walls and doors, landscaping, and fencing.
Neighborhood Disturbance
As a landlord with a pet-friendly rental, you need to be prepared for complaints from neighbors regarding noise. Barking dogs can particularly be a nuisance. Make sure to address complaints in a timely manner and remind tenants of noise restrictions.
Pet Injuries
This is also a possibility once you begin accepting pets into your rental property. Animals that feel threatened or triggered can retaliate by injuring people. As a landlord, you could minimize this by screening pets before allowing them into your residential property.
Pet Odors
These can also be potential issues when renting out your home to tenants with pets. A resident who fails to properly clean up after their pet can lead to unsanitary conditions. Also, pet odors can permeate upholstery, carpets, and other porous materials. Make sure your tenants know the cleanliness responsibilities throughout the tenancy.
How to Minimize the Risks Associated with Renting Out a Pet-Friendly Rental?
The following tips will help you minimize risks associated with being a pet-friendly rental:
Attach a Pet Addendum on the Lease
Be crystal clear regarding certain things when it comes to pets. This is to help you avoid potential conflicts or misunderstandings. For example, make sure you state the size, number, and type of pets you allow into the property. You must also want to let tenants know about any fees they may need to pay before they sign the lease agreement.
Review Your Insurance Policy
Taking pets into your rental property means taking on more risk. With that in mind, consider reviewing your insurance coverage to ensure it sufficiently covers potential injuries by pets on the property.
Comply with the Fair Housing Act
Even if you decide not to offer a pet-friendly rental, make sure you still comply with the dictates of the Fair Housing Act. It requires that landlords treat their tenants fairly and equally regardless of certain characteristics.
It’d be unlawful under the act to charge a disabled tenant an extra deposit, fee, or rent for having a service dog or emotional support animal. You also cannot deny them accommodations on the basis of their assistance animal as they are not consider pets under the Fair Housing Laws.
Bottom Line
Due diligence is key for a successful rental operation and while there are risks to allowing pets into your property, the advantages far outweigh them. For further help managing your rental properties, look no further than Adaptive Realty.
We are a dependable property management company serving Los Angeles and its surrounding areas. Get in touch to learn more!
