Did you know that almost 90 million households in America own some type of pet? The most popular furry friends tend to be cats and dogs, but some people also own horses, birds, and even fish or exotic animals.
When you own a property that you rent out, you may be wondering if it's a good idea to have pets in a rental property. Here are some of the biggest pros and cons of that decision.
Pro: More Rental Income
When you allow pets into your rental property, you can make quite a bit more money. For instance, you will be able to charge an additional deposit for the pet. Since pets carry a higher risk of property damage, you can tack on a bit more money to the initial security deposit.
In addition, many rental payments include extra pet rent. The amount you charge depends on the type of animal, its size, and market rates.
Usually, it can be anywhere from $25 to $100 extra per month, per pet. Over a year or more, that could add up to a lot of extra cash.
Con: Potential Property Damage
Even if your tenant has the best intentions, there is no getting around the obvious: Allowing pets could cause rental property damage, which you might not notice until your rental inspection.
This can be mitigated somewhat by requiring a pet deposit, but even that amount may not be able to cover extensive damage. Pets can wreak havoc in ways such as destroying the carpet, leaving bodily fluids, and ripping up furniture.
Pro: A Wider Tenant Net
If you find yourself losing money on your rental payments, you should consider trying to find new tenants. Including pets in the lease options will inevitably give you a wider rental property tenant pool to choose from.
When you have a vacancy, you will be able to fill it a lot faster. Many rental tenant terms for other properties include strict stipulations for no pets, with the exception of registered service animals.
Con: Possibly Losing Tenants
Even if pets don't cause any problems inside your property, you may still lose tenants. Some people do not like living near dogs or cats. They may suffer from allergies or simply want peace and quiet instead of listening to barks, meows, and squawks.
Play it by ear when it comes to situations with multiple tenants. For example, if the properties you own are far apart, it may not be a huge issue. But if you own an apartment building, noise travels more quickly.
Should You Have Pets in a Rental Property?
Ultimately, it is up to you when you decide to have pets in a rental property. Using this list of pros and cons, you can choose if it is worth it for yourself and your tenants.
Do you want to get started with property management in the Layton, Utah area? With PMI Home Team, you'll find the perfect partners to help you run a rental property.
Ready to learn more? Give us a call or send us a message today.