Pros and cons of allowing pets in rental properties

For a growing majority of renters, nothing is more important than being allowed to keep their beloved furry friends close!

Finding a pet-friendly home has become the top priority for most renters in the United States, even surpassing coveted amenities like in-unit laundry and parking.

Data from Zillow reveals that twice as many renters filter for pet-friendly listings compared to any other amenity in the country’s 25 largest rental markets.

The top three pet-friendly cities are all located in Texas, with Dallas leading the pack at 79% pet- friendly rental listings, followed closely by Austin and San Antonio. Interestingly, the most popular dog breed across all three cities is the Labrador retriever.

Nationally, 59% of renters report having at least one pet, and 40% have a dog.

Should you allow pets in your rental property?

For property managers and landlords, accommodating pets can present challenges as well as opportunities. Not only do pet-friendly rentals open a larger pool of potential tenants, but they can generate additional income for landlords – and hence additional commission for you, the property manager.

Many pet owners will see the value of paying a premium to keep pets close!

Check your local regulations before charging, though. Some states limit how much can be charged for pets, while some ban pet deposits completely.

Assuming charges are allowed, these funds can be used towards any damage that might be caused to the property by a pet, such as scratched floors or chewed furniture. Extra cleaning to remove pet hair and other debris may also need to be charged to the pet deposit.

But while you may be able to recover these costs on behalf of the landlord, the time needed to repair pet-related damage could require a longer vacancy period before you can get another renter in. This could influence your pricing of a pet-friendly rental – or your decision to allow it in the first place.

Pets also have the potential to cause a public nuisance. Excessive barking or aggressive behavior may lead to tenant-neighbor disputes that property managers and landlords seek to avoid.

For these reasons, it’s understandable when property managers and landlords are hesitant to allow pets in their rental properties.

And the decision isn’t always up to the housing provider. Service and emotional support animals are not defined as pets and are protected by the Fair Housing Act. Reasonable accommodation must be made for tenants with disabilities who require assistance animals, and deposits or other charges for them are not allowed.

While they have the right to restrict pets on their premises, many housing providers are finding ways to minimize risk instead of shutting themselves out of this growing market completely. In addition to pet deposits, this includes allowing only one pet per unit, restricting certain dog breeds or requiring pet insurance. Rules and guidelines for pets must be outlined clearly in the lease agreement.

By implementing such measures, property managers and landlords can strike a balance that satisfies both pet-owning renters’ needs and their own concerns.

Courtesy of Samantha Ferreira, Head of Client Services at PayProp North America