In the world of real estate investing, many landlords have a negative perception of renting to tenants with pets.
Is it possible that renting to tenants with pets provides greater risk of property damages with little benefit to you?
Well, this may be another situation where the adage 'greater risk, greater reward' applies.
In this article by SGI Property Management Dallas, the leading property management company in Dallas, we'll offer some advice on the topic. We have substantial experience in handling property management matters for landlords in the area, so we know the best practices.
At the end of this article, we hope however that your perspective will be wider when it comes to renting to tenants with pets
The Advantages of Having a Pet-Friendly Rental
The issue of tenants with pets is always discussed with a negative connotation. But this should not always be the case. The team at SGI Property Management Dallas encourages you to seriously consider the pros of such a scenario. To convince you, a few benefits have been discussed below.
1. More Potential Renters
According to one source, about 70% of households in America have one or more pets. Seventy percent! If you refuse to rent to tenants with pets, you may be cutting out a large number of prospective renters.
By advertising your property as a pet-friendly one, you'll have a larger number of potential renters to work with.
This also has an effect on the quality of tenants you'll eventually rent to. From a statistical perspective, you'll have better chances of getting a quality tenant when you have a larger group of applicants to choose from.
2. Better Finances
Pet owners tend to be financially secure, probably because having and caring for a pet requires a consistent income. As a matter of fact, dog owners tend to earn slightly more than cat owners, interestingly enough.
As a landlord, make sure to conduct a credit check and finance report while selecting a tenant.
3. Longer Tenancies
Vacancies are the bane of any real estate investment. They reduce your earnings while still costing you money through advertising and marketing fees, showings, taxes, and utilities. That's why having long-term tenants is a great way to protect yourself financially.
All factors considered, tenants with pets rarely tend to stay in one spot for a long time. There are a few reasons for this:
First, moving frequently is stressful for pets. Second, there aren't many rentals on the market that allow pets, so they prefer to live in one place that does for the long term.
With lower vacancy rates, you can enjoy a more stable stream of income and also a higher ROI from your Dallas real estate investment.
4. Responsible Tenants
As a landlord, you don't just want a tenant who pays rent; you also want a tenant who takes care of the property and maintains it. Taking care of a pet is a lot of responsibility, and thus it can be said that most pet owners are responsible enough to care for a property.
5. Higher Rent
Pet owners are often willing to pay a rent that's slightly higher than the market. This is due to the challenge of finding another space that matches not only their needs but that also allows pets.
Cons of Allowing Pets
The reluctance of some landlords is not completely unwarranted. Leasing your space to tenants with pets comes with its own set of challenges.
1. Increased Risk of Damages
Truth be told, there is a higher risk of damage with a pet in your space. They could damage the carpet or furniture, scratch the floor or chew out your garden in the front yard.
However, it can be argued that not all pets behave the same. There are plenty of well-behaved ones, and it's a case-by-case issue.
2. Disturbances
This is a common issue, especially with pets of the canine sort. Frequent barking can get to the neighbors, leading to tense situations on the property or in the neighborhood.
If you have a multi-family property, then allergies, phobias, and more can scare away other tenants.
Our Takeaway
From our experience in the Dallas property market, we can comfortably advise landlords to consider implementing pet-friendly policies. The benefits considerably outweigh the cons of leasing to tenants with pets, if done right.
To be sure, there are measures you can take in order to reduce the risk. Before renting to tenants with pets, make sure to:
- Perform a thorough tenant and pet screening. Speak with previous landlords to know the type of tenant and pet you're dealing with.
- Ask for a pet rent or pet deposit. We advise that you read up on the state’s Landlord-Tenant Laws and only implement clauses that meet these provisions.
- Charge a higher rent. This measure will serve as coverage for possible damage. After all, the behavior of even the best-behaved animal can't be predicted.
Professional Help
The info listed above is only the tip of the iceberg when it comes to planning the success of your rental property in Dallas. Not only do you need to put in time and effort, but you also need the relevant experience.
To meet the needs of your tenants, rely on the leading property management company in Dallas, SGI Property Management Dallas. We are a full-service property management company.
Our experience in the market is spread over a wide range of properties, from multi-rental properties to apartment units.
Get in touch with us today and receive a quote!
