Choosing the right property and tenants is critical in making your investment successful. This does naturally mean an increased amount of responsibility for you. Firstly, you will need to screen tenants, collect rentals, effect repairs, etc. Fortunately, you can hand these responsibilities over to a property management company to take care of for you. But, there are some basic things you will need to consider first. One of those things is whether or not you are going to be one of those property owners who agree to providing pet friendly rentals.
Whether to allow pets or not is sometimes a difficult decision for property owners renting out their properties.
Here are some of the pros and cons for you to consider.
The Advantages of Renting to Pet Owners
You should not overlook the fact that a lot of people love having pets. Allowing pets can be an advantage in a market where renters have a lot of options to choose from. You will also have a wider range of candidates and will so find it easier to rent the property out more quickly.
Potential for Higher Rent for Pet Friendly Rentals
This, in turn, allows you to charge a higher rental for allowing pets. In most cases, people will be willing to pay a higher deposit and a higher monthly rental in order to be allowed to have pets.
Pet owners are generally more responsible as well – it takes money to be able to look after a pet properly.
Lower Tenant Turnover
A further advantage is that pet owners will generally become more settled in the home. If the property suit them and their pet, they are not likely to consider moving and uprooting their pets in a hurry. This can result in a more stable property turnover.
Pet Friendly Rentals Often Snatched up Quickly
In Australia, 30% of the population rent, 62% own a pet, and only 10% of rental properties are pet friendly. This means that those renters who own pets will often struggle to find a home. If your property is one of those in-demand pet friendly rentals, it is likely to get snatched up by pet owners very quickly. So, this will will reduce the vacancy time and keep you making money.
Larger Tenant Pool to Choose From
On the same note as above, having a highly sought after property will mean that you have a larger tenant pool to choose from. Disallowing pets could mean that you are missing out on high quality tenants. These could be great tenants who are simply not applying for your property because they can’t bring their dog.
Pet Owner Demand for Pet Friendly Rentals
Australian research has found that tenants with pets are often willing to pay more rent – between 7% and 14% on average. A lack of pet-friendly accommodation can make pet owners quite desperate. So, they are often more willing to make concessions to secure a home for their family.
Pet Friendly Rentals Result in Longer Leases
Tenants with pets are also likely to stick around longer. Again, the difficulty that tenants can face in finding a home when they have a pet means that they will not make the decision to move lightly. Tenants without pets have very little tying them to your property. So, they are much more likely to jump from property to property. If you would rather not deal with the hassle and cost of finding new tenants every 12 months, allowing pets could very well be the answer.
Pleasing Demographics Characteristic of Pet Owners
Pet owners in Australia are also more likely to be earning middle to higher incomes, with 68% earning $70,000 – $100,000. Research shows that they are also more likely to be physically healthy and have better mental health. A tenant who feels at home and has their health and finances in order is more likely to be a responsible tenant and one who sticks around.
The Disadvantages of Offering Pet Friendly Rentals
Most people love pets. But, when you are a property owner, there can be some problems associated with renting to pet owners. Pets can cause damage to the property.
Ultimately, it is your choice as the property owner whether or not you would like to allow pets on your property. The best thing you can do is speak with Position One Property. We are happy to provide guidance in making this important decision.