Property Management Blog

Increased Tenant Pool

One of the most significant advantages of allowing pets is that you’ll have access to a broader tenant pool. According to the American Pet Products Association, 67% of U.S. households own a pet. We think that statistic is actually a little low; it seems like almost everyone we encounter has at least one dog or cat. So, from a strictly numbers perspective, it makes economic sense to allow pets. 

By accommodating pet owners, you tap into this vast market of prospective tenants, significantly increasing your chances of filling vacancies quickly. Pet-friendly rentals are in high demand, and prospective tenants are often willing to pay more for a home that welcomes their furry friends.

Higher Rental Income

Pet-friendly properties can earn higher rents for many property owners, especially if you’re in a competitive market like ours, where homes are leased quickly. Tenants with pets understand that finding suitable accommodation can be challenging, and they are often willing to pay a premium for the convenience. This means you can set higher rental rates and potentially increase your overall income.

Longer Tenancy Duration

Tenants who find a pet-friendly rental are more likely to stay longer, reducing turnover rates. Moving with pets can be a stressful and challenging process, so once pet owners find a comfortable home for their animals, they are less likely to move frequently. Long-term tenants mean fewer vacancies, reduced advertising costs, and less time spent screening new tenants.

There’s also the matter of not wanting to pay another pet fee. Most tenants with animals know that they’ll be asked for another pet fee or pet deposit when they move into a new home. They avoid this by renewing their lease agreement and that’s good for you.

Responsible Tenants

It’s easy to worry about the damage that animals can do, but honestly as professional property managers in Sheboygan, we can tell you that we rarely encounter a pet that can do more damage than a person. And it’s rare to encounter pet damage that exceeds the pet fee, pet rent, or security deposit that was paid. 

Pet owners often make responsible and considerate tenants. Caring for a pet requires a high level of responsibility, routine, and commitment. These qualities can translate into how they treat your property. Additionally, pet owners are typically more appreciative and loyal to landlords who understand their needs, which leads to a positive tenant-landlord relationship.

Most tenants with pets turn out to be good tenants. Think of it as a positive sign when a tenant has pets, and make sure you ask former landlords during the screening process how the pet behaved in the rental property. 

Competitive Advantage

In a crowded rental market, offering pet-friendly accommodations can give you a competitive edge. With many landlords still hesitant to allow pets, your willingness to do so can make your property stand out. This unique selling point can attract high-quality tenants who may otherwise overlook your rental.

In your marketing, you’ll want to indicate that you’re willing to consider pets. That’s going to draw more prospective tenants to your listing. You’ll have more showings to schedule and a larger pool of applicants who are willing to consider your home. 

Reduced Vacancy Rates

By opening your rental property to pet owners, you can significantly reduce your vacancy rates. Pet-friendly rentals tend to fill up faster and remain occupied longer. With a steady stream of applicants, you can maintain consistent rental income and minimize the financial impact of empty units.

Vacancy is expensive. If you’re committed to not having pets in your property, you may have to make peace with the fact that it’s going to take you longer to rent out your property to a good tenant. 

Additional Revenue Streams

Allowing pets opens up opportunities for additional revenue streams. You can charge pet deposits, pet rent, or non-refundable pet fees. These charges can help offset potential damages and increase your income. Make sure to clearly outline these terms in your lease agreement to avoid any misunderstandings. We’re going to talk about pet policies and how to create them to protect your property. Extra pet rent or pet fees are a big part of that. 

Enhancing Your Property's Appeal

Pet-friendly features such as a secure yard, pet washing stations, or nearby parks can enhance your property's appeal. These amenities can make your rental more attractive to pet owners and increase its market value. Investing in pet-friendly additions can deliver long-term benefits by attracting and retaining responsible residents who are likely to stay in place. 

Pet-Friendly Cons

Risk Associated with Allowing Pets in your Sheboygan Rental Property

While permitting pets might seem like a good way to attract more tenants, and it does come with all of the benefits and advantages that we’ve just listed, it’s important that you make this decision with all of the necessary information. Allowing pets isn’t always perfect. In fact, it can bring about several issues that can impact your property and your peace of mind. 

Let’s talk a look at some of the compelling reasons to reconsider allowing pets in your rental property:

• Liability Concerns

One significant issue with allowing pets is the potential for liability. If a tenant's pet injures someone on your property, you could be held responsible. Even well-behaved animals can act unpredictably in new environments. This risk can lead to potential lawsuits, which could drain your time, resources, and finances. For example, a dog bite incident could result in legal action against you, even if you had nothing to do with the incident directly. You’ll be an easy target for a victim of that dog bite, since you’re the person who owns the property where the incident occurred.

• Pet Damage Potential

Pets, especially those not well-trained, can cause considerable damage to rental properties. Even if it’s unlikely, it’s still a risk. From scratched floors and torn carpets to chewed baseboards and stained walls, the cost of repairs can add up quickly. Even pets that are usually well-behaved can have accidents or display destructive behavior when stressed or left alone for long periods. Removing pet odors from a home can take a lot of effort. Replacing landscaping that’s been dug up by a dog can also be term-intensive and expensive. There’s damage that a cat's claws can do to hardwood floors. This is part of the risk.

• Deteriorating Property

Beyond the immediate damage, pets can contribute to the gradual deterioration of your property. Hair, dander, and odors can become embedded in carpets, furniture, and ventilation systems, requiring deep cleaning or replacement between tenants. These issues can make your property less appealing to future renters who may have allergies or a strong aversion to pet-related smells. Persistent pet odors can be challenging and costly to remove, potentially reducing your property's market value.

• Irresponsible Owner

Not all pet owners are as responsible as the fantastic pet owners that some of us have been lucky to work with. You’ll find that there are pet owners who may neglect to clean up after their pets, leading to unsanitary conditions and attracting pests. Others may fail to properly train or control their animals, resulting in noise disturbances or aggressive behavior that can upset other tenants and neighbors. A tenant who neglects to scoop their dog's waste, for example, could create a health hazard and affect the overall living environment. In your multi-family rental properties, you’ll find there are always going to be residents complaining about their neighbors not cleaning up after their dogs. 

• Insurance Concerns

Allowing pets can also impact your insurance policies. Some insurance companies charge higher premiums or refuse coverage altogether for properties that allow certain types of pets, particularly dog breeds perceived as more aggressive. Additionally, claims related to pet damage or injuries can lead to increased premiums or policy cancellations. Talk to your insurer before you allow pets. If your insurance policy does not cover dog bites, you may face out-of-pocket expenses for any incidents. Get an understanding of which dogs might be on their dangerous breeds list, and what it will mean if you rent to a tenant who has such a pet.

Pet Screening: A Hedge Against Risk

Your tenant screening process should be consistent, objective, fair, and well-documented. If you’re going to allow tenants to move in with pets, make sure both the human and the animal meet your screening requirements. Before you even start screening the pets, screen the tenants thoroughly. A responsible pet owner is likely to be a responsible tenant. Check references, credit scores, and rental histories to get a sense of the tenant's reliability and responsibility.

We recommend a three-step process to your pet screening; pet interviews, a review of vet records, and a checking of pet references. 

It might feel silly, the idea that you’ll be screening animals. But, by following these screening steps, you can ensure that you find responsible pet owners and well-behaved pets, protecting your property and other tenants in the process.

Your Pet-Friendly Property is Only as Safe as Your Pet Policy Allows it to Be

Before you even begin to think about pet screening and collecting pet fees, you want to make sure you have a solid pet policy in place. By establishing clear pet policies, you can be sure that your property is protected, and your tenant understands your expectations around their residency and the residency of their pet. These should be outlined in your lease agreement and communicated to potential tenants upfront.

Let’s take a look at what your pet policy should include.

• Type of Pets

Specify which types of pets are allowed. You can make the decisions here. Pets are not a protected class, so you can be picky for no apparent reason. Maybe you’ll allow cats but not dogs. Maybe you’re fine with any cats or dogs. Or maybe you are a hard no on cats and dogs but you’re fine with fish and birds. Decide what you’re willing to consider and what you’ll ultimately prohibit and write that into the policy. 

• Breed Restrictions

Some landlords restrict certain breeds based on size or temperament. As we discussed earlier, your insurance carrier may have some thoughts on which dogs might not be covered in your rental policy. Give tenants a list of your own restricted breeds. You can remain open to all breeds, but if you do that, consider requiring your tenants to show up with their own insurance for that pet. 

• Number of Pets

Limit the number of pets allowed per household. You can decide how many you’ll allow and how many are too many. Maybe it’s one dog and one cat. Maybe it’s no more than one pet total. 

• Size and Weight Limits

In addition to restricting the number and types of pets you’ll allow, you can also set size or weight limits to minimize potential damage. Allow animals up to 20 pounds, for example. Or you can say small dogs only. You can allow adult cats and dogs but not kittens and puppies. 

• Pet Fees and Deposits

Charge a pet deposit or monthly pet fee to cover any potential damage. This should be an important part of your pet policy. You want the extra financial security to cover anything that could go wrong. And, if the pet does no damage at all, you can keep anything that was non-refundable, such as a pet fee or your monthly pet rent. 

Key Elements of a Pet Addendum in Your Lease

Once you've decided to allow a pet, include a pet agreement addendum in your lease. This document should outline all the pet policies and the consequences of violating them.

You’ll want this addendum to reflect a description of the pet, including details like breed, weight, and age. It should also list all of the tenant’s responsibilities. Outline your expectations, such as waste disposal and pest control. It’s also important to include penalties for acting outside of the pet policy or addendum. Specify the consequences for violations, including fines or eviction.

Even after the pet has been approved, regular inspections are crucial to ensure ongoing compliance with your pet policies.

Still wondering what to do about pets at your rental property? Consulting with a Sheboygan property management professional is always a good place to start. Let’s discuss your property and its potential to correspond with pets. Contact our team at Blue Frog Property Management.