What Landlords Need to Know About Renting to Pet Owners
Over 60% of households in the U.S. have pets, but many landlords continue to be hesitant to allow pets in their rental units. The majority of their hesitancy is due to property damage, liability, deposits, or simply out of annoyance.
However, if you have a clearly defined pet policy and effectively manage and screen pets and pet parents, you will maximize your occupancy, tenant retention, and rental income. Pet owners are typically willing to pay more rent and/or fees for pets, they want their pets to feel like a part of their family, and pet owners stay longer than non-pet owners, which saves you money on turnover costs. Continue reading below as we take a look at some ideas to help it work for you, your tenants, and their pets.
Pros and Cons of Allowing Pets in Your Rental Property
As a landlord, you should consider the pros and cons of allowing pets in your rental properties. On one hand, allowing pet owners to rent your property expands your pool of potential tenants and potentially increases your rental revenue. On the other hand, it introduces extra property maintenance and liability considerations.
Let’s take a look at the benefits and drawbacks to help guide you in your decision.
The Benefits of Being Pet-Friendly
The benefits of allowing tenants with pets include:
- Higher Demand and Faster Occupancy: By restricting your property to no pet ownership, you are dismissing a huge percentage of your pool of potential tenants. When you allow pets, you limit your unit’s vacancy time, and you have a wider net of interest, particularly in competitive rental markets like Northern Virginia.
- Longer Tenant Retention: Since pet owners have limited housing options, they are less likely to leave a pet-friendly rental. At the same time, renters with pets renew at significantly higher rates, demonstrating a cheaper turnover for your expense and a constant flow of income.
- Additional Revenue Streams: Landlords may also collect pet deposits, nonrefundable fees, or monthly pet rent, therefore helping to bolster your bottom line. Virginia has no statewide restrictions on any pet fees, which gives you leeway to mitigate the risks associated with having pets.
- Competitive Advantage: A pet-friendly policy creates a competitive differential. In a market where few or no properties allow pets, very few available properties are in competition with yours. Also, a pet-friendly policy can provide justification for a slightly higher rent price and generate responsible long-term tenants.
The Challenges of Renting to Pet Owners
However, there are some drawbacks, and these include:
- Risk of Property Damage: Even pets that are well-behaved can still do damage, such as scratched floors, chewed baseboards, or carpet stains. If damages are not addressed quickly, it can quickly get out of hand.
- Noise and Nuisance Concerns: Barking dogs or stray cats from your tenants can irritate your neighbors, especially when you have aging parents in the home. This can create problems with tenant-landlord relationships and possibly leasing violations.
- Liability Exposure: If a tenant’s pet injures someone or damages a neighbor tenant’s belongings, it can cause legal issues for you. Tenants’ insurance can handle damages in many cases, but you need to make sure you’re covered.
- Additional Screening and Management: You need more work to evaluate pet owners; there is greater diligence, e.g., checking for references, confirming vaccinations, and enforcing pet policies. If the landlord is managing their own property, this may mean considerably more management.
Success depends on having clear pet policies, fees, and screening tenants and pets. If you want to ease the process, you can always hire a professional property management company.
How to Set Clear Pet Policies and Protect Your Property
Allowing pets in your rental can increase tenant satisfaction, but it also requires clear guidelines in the lease agreement. A clear agreement regarding pets takes away some risks, reduces chances for miscommunication, and provides an enjoyable rental experience for everyone.
Below are a few suggestions for enacting strong pet policies into your lease:
1. Establishing a Fair Fee Structure
Virginia landlords have a decent amount of flexibility in setting pet fees. You may choose to use a combination of pet fees as you look at ways to protect their investment and still be competitive in the market.
Most landlords are utilizing a three-tier method. A non-refundable pet fee ($200 -$500 usually) for cleaning, a monthly pet rent ($25 – $50 every pet), and a refundable pet deposit ($200 usually) for damages.
The three-tiered method balances compensation for additional risk but keeps responsible pet owners interested in your property.
2. Determining Acceptable Pet Types
The lease agreement should define what animals are allowed. While cats and small dogs may have little risk, you may want to prohibit exotic pets or breeds that have a tendency to destroy things.
A size requirement (like animals under 40 pounds) limits the damage a large dog may cause. Instead of prohibiting specific breeds, which possibly violates local laws, focus on behavior requirements. For example, you may require that all dogs take a basic obedience class.
3. Implementing Documentation Requirements
Protect yourself by insisting upon complete documentation on the pet. This means current veterinary records, including vaccinations and spay/neuter status, a pet resume including references from past landlords, and proof of renters’ insurance for pet liability. This documentation will at least help show the animal’s health and behavior history and provide you with recourse, if needed.
4. Setting Behavioral Expectations
Document your pet behavior expectations in the lease. Include common issues such as excessive noise by pets, disposing of waste reasonably, and on-leash rules in common areas.
Specify which areas are pet-free, such as rooms with carpet, or which specific rooms can allow pets. Include graduated consequences for violations, from warning letters and fines to termination after frequent violations occur.
5. Conducting Thorough Pet Screening
It is critical that you screen not only prospective tenants but also their pets. It is also worthwhile to schedule a meet-and-greet to evaluate the dog and see if it is a good fit with the information provided. Look closely for signs of training and socialization. There are more possible risks revealed with an interaction in person than just the paperwork.
6. Documenting Property Condition
Before the tenant takes possession, do a complete walk-through of the property, making careful documentation of any areas that are likely to be affected by pet use. Take time-stamped photos of all flooring, walls, and trim work, even if it is only a few weeks old.
Create a separate addendum for the pets, get both parties to sign it, and note the condition of the property and pet policy. Having documentation is an important protection should something transpire later.
Strategies for Finding Responsible Tenants with Pets
While allowing pets can bring in a good tenant, screening your tenant carefully helps you to find a responsible pet owner who will take proper care of your property. Here are some useful techniques to present the best candidates and reduce your risks:
- Ask for pet references from prior landlords or veterinarians to confirm behavior and care history.
- Meet the pet in person to evaluate its temperament and see if it matches the description.
- Ask to see the vaccination records and if they have been spayed/neutered to be sure the pet is being maintained properly.
- Request obedience training certificates for dogs to ensure good behavior.
- Charge pet fees/deposits to cover potential damages and deter careless owners.
- Add pet clauses to the lease, including noise and cleanup rules, with clear consequences for violations.
By taking those steps, you’ll start to engage with reputable pet owners while protecting your rental investment. The screening process lends itself to happier tenants and less stress.
Conclusion
Permitting pets at a rental property may have a significant impact on your rental unit and tenant retention, though it will take some planning. Evaluating the pros and cons of permitting pets, developing a clear pet policy, and screening your tenants and tenants’ pets will help reduce your risks and increase your benefits.
You can protect both the asset itself and your time by clearly defining your terms and conditions, outlining your fees, and including clauses in your lease. In addition, if you are a landlord who doesn’t want to do all the work, then professional property management companies can assist you with your pet-friendly rental preparations.
Besides drafting pet-friendly leases and dealing with maintenance issues, choosing professional property management in Northern Virginia can help maximize rental returns and protect long-term investments.
Read more: 4 House Items That Will Make Life Easier For Pet Owners
Read more: Basic Etiquette for Dog Ownership
Read more: How to Care for Pets: Tips and Guidelines
