“Oh, did you see Fluffy.
He’s so cute! He’s practically
part of the family.”
(Most pet owners)
“Pets in my house?
Never!”
(Most landlords)
Almost everyone loves pets.
Some people are dog people. Some
are cat people. And some like the more interesting
kinds, like birds and snakes. Pet
enthusiasts are a multi-billion dollar business segment; and those billions
don’t count the home rental income from tenants who crave those fenced-in backyards
and pet doors.
However, landlords are the one minority group that typically
despises pets. They’ve heard the horror
stories of urine-soaked flooring, smells that just never seem to go away, and shredded
interiors. “I’m not going to allow that
to happen in my house!” thousands of landlords have told property managers
throughout the years.
But maybe going in the complete opposite direction of this
conventional wisdom is the best way to maximize ROI?
Here are the top three reasons why landlords should consider
welcoming pets into their rental homes:
1. It’s much easier to
place tenants! From personal experience
in Charlotte property
management, tenants have pets 50%-75% of the time. I really don’t think this is an exaggeration! Property managers turn away so many
prospective (great) tenants when pets are not allowed. This crushes ROI as it slows the property
being occupied, turns away better tenants, and commands lower rents as a
smaller pool of tenants are being courted.
2. Non-refundable pet
fees are free money. Tenants will pay
extra for their furry (and non-furry) animal friends to be in the house. The bigger the house, the bigger the pet fee
the tenant will pay. The more pets they
have, the more pet fees they will pay.
Try to charge per child for big families and see how that is received! But, with pets, it is industry standard.
Furthermore, there is nothing that says that pet fees have to
go towards cleaning up for the pet; this is what the security deposit is
for! The pet fee is merely paying for
the right to have a pet in the home- nothing more.
3. It is important to
have a realistic view about pets and the potential damage they cause. Have pets caused costly damage to rental
homes in the past and will they continue to do so in the future? Yes.
Flooring, especially carpet, is the usual casualty when pets go
rogue. And new carpet isn’t cheap. Now, with that being said…
Tenants who like and can afford nice homes typically like to
have clean places that their friends and family can visit. It is embarrassing to most people to have visitors
into their home if it reeks of pet urine and there are visible pet feces ground
into the carpet.
With lower priced rentals in questionable neighborhoods, the
carpet is typically a goner anyway. So
instead of fighting this, rip up the carpet after the current tenant moves out,
replace it with linoleum, and allow pets! As my friend who invests in lower price
rentals says, “Carpet? What’s that?”
Allowing pets often makes for a better ROI. Maybe landlords should consider showing pets
more love!
Brett Furniss is the President
& Owner of BDF Realty (“Charlotte’s
Most Innovative Property Management & Investment Company”), and Rent-To-Sell Realty (“When You Need a New
Solution to Sell Your Home”) which specialize
in rent-to-own (lease options) and rent-to-sell homes. His newest book, A Real Estate Agent’s Complete Guide to
Representing Rent-To-Own (Lease Option) Tenants (Delight Clients, Fill Vacant
Homes, and Earn $2,250* Upfront! (*Minimum!)
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