Owning rental properties is a fantastic way for homeowners to keep their properties utilized. A great source of passive income for those who outsource management, renting properties have many advantages. However, there are also many issues and concerns that can arise with this process. One hot topic is regarding whether or not to allow pets to live in a rental home. While there are certain disadvantages, there are also advantages. Here are the positive and negative aspects that come along with allowing pets in your rental property.
- The rental home will appeal to a higher number of tenants. By allowing pets into your property, you will have a larger market share on potential renters. Depending on the demand in your area, this may be critical to ensuring your home stays rented. Since up to 50% of renters own pets, this is a great option to make properties more appealing.
- Pets provide justification for higher rent and security deposit. Due to the nature of pet ownership, tenants are willing to pay a higher rent and security deposit to keep their animals with them. As such, landlords will collect a larger profit on their rental properties.
- Pet owners are often responsible tenants. Pets are a large responsibility, and many owners are aware of this. Their ability to care for their pet is indicative that they will likely be more responsible than some tenants. Furthermore, pet owners are often cognizant of taking good care of the property to avoid paying unnecessary damages caused by their pet.
- Pets can cause additional damage. While many pet owners are responsible tenants, pets can still cause additional and often unintentional damage. For example, dog claws can scratch up hardwood floors quite easily. If you are very concerned about maintaining the state of your home, pets may not be the best option. Either way, ensure you document the state of the property thoroughly before renters move in.
- Pets can be a liability if they attack or disturb neighbors. An uncommon but potential scenario may occur with a tenant that has a poorly behaved animal. If the animal is aggressive, unfriendly, or even just loud, the burden on the neighbors can quickly become a problem for the property owner. Ensure you set clear guidelines with your tenants regarding acceptable behavior, and be clear with your fellow residents that you intend to allow animals to live in the home.
As noted above, there are a number of pros and cons to allowing pets into your rental properties. If you do determine that it is the right move, ensure that you consult with an attorney and your insurance company. Focus on protecting yourself by ensuring you have the correct verbiage in the lease and that your property is covered appropriately by the insurance company. While it is not the right choice for everyone, opening your rental property up to pets can be a great opportunity when executed correctly.