Allowing furry friends can help you to attract reliable and grateful tenants – along with more money.
Did you know over 60% of Australian households own a pet? So why are there so many owners that have a “no pet” policy on rental tenancies?
Perhaps it’s because they think it’s easier to manage a property without pets, or because they believe pets might cause damage. Despite these opinions, it has actually been suggested that there are a number of good reasons to consider allowing pets, and these positive factors can significantly outweigh the negatives.
According to the RSPCA, there are 25 million pets in our country. That’s more pets than people!
If you allow pets you’re opening the door to a wider range of potential tenants, which means you’re likely to achieve a higher rent as well as longevity of the tenancy. Pet friendly properties are renting faster and received twice as many applicants than other housing, so chances are you will lock in a tenant much faster than a “no pets” property.
The Upside and Downside
Some investors are hesitant to accept pets because they believe their property is too small, or because they do not want to deal with possible damage create by pets.
It’s true – you probably do not want tenants with large dogs if your property has a beautiful, delicate manicured garden. But a low maintenance garden or a paved courtyard? That could be ideal for someone with pets.
The payment of a “pet bond” is very common in some parts of the world, but not permitted in most states of Australia. However many owners manage to charge higher rents to help offset the risk involved with allowing pets.
Dogs are the most common pet; 19 dogs to every 100 people and cats are the second most common; 15 cats to every 100 people.
You can further support yourself by inserting a “pet clause” in the lease agreement to protect your interests and ensure that any damage incurred will be rectified upon the tenant’s vacate.
These days, an appropriate landlord insurance policy, which includes cover for pet damage is an essential risk management strategy.
Some final facts…
Research shows that the number of renters in Australia is growing. More and more young people are renting for longer periods of their lives. Pet owners can make excellent long-term tenants that abide by the housing rules – with the incredible demand for pet-friendly properties, they do NOT want to mess it up once they have one!
Tenancy longevity also means you will spend less on advertising to find new tenants.
It’s an ideal win-win outcome, don’t you think?
