When it comes to allowing pets in your rental property, we often imagine the worst case scenarios. Our minds flash to Baxter the labradoodle chewing up the baseboards and Felix the tabby cat hacking up hairballs on the carpet. We imagine stains and lingering odors, rogue hairs and scratches on the hardwood. We can get creative imagining the list of potential damages, however the reality is, pets simply aren’t all that destructive. Statistics are showing that opening your doors to Baxter may actually be a pathway to increasing your rental revenue.
As millennials flood the rental market, the demand is growing higher than ever for pet-friendly rentals. Millennials now make up the majority of the renters in a growing number of zip codes, so it’s important to pay attention to the role pets play in their lives. Approximately 7 in 10 millennials own pets, and they often put their pets first when considering what they want and need in a new home. In fact, about 70% of the total rental market now owns pets, yet 82% of pet owners reported having a difficult time finding a rental that accommodates their furry family members. Being a pet-friendly rental opens the doors to a large segment of the rental market and meets a growing demand.
Despite preconceived notions of the damage pets can cause, in most cases, being a pet-friendly rental can actually lead to increased revenue, lower tenant turnover, and filling vacancies faster due to high demand for pet-friendly rentals.
There are pet damage deposits and monthly pet fees that many landlords charge their tenants who have pets which increases their monthly revenue. According to a study done by FIREPAW, Inc., many property managers report having hardly any damage caused by pet tenants, and damage that was reported was more than covered by their pet damage deposits. In fact, average annual net benefit for pet-friendly property managers is $2,731, while the average net annual cost accrued from damage, insurance, and time spent is only $218.
The laws regarding pet deposits, fees, and pet-friendly property management vary from state to state, so make sure you check your state laws before you make any changes to your contracts and fees!
Opening your rental doors to tenants with furry family members may just be the step you need to take in order to increase your rental revenue and decrease your renter turnover rates. For more solutions to fill your vacancies faster, contact Showdigs!