Asking "how much can I rent my house for?" may be an urgent question when getting a property rental-ready. However, investors must also answer another pressing question: whether or not to allow pets—and how the decision could impact ROI.
Having a pet as a life companion is becoming more and more common among renters in Atlanta. Pets have become an important part of our lives and as part of our homes. So, should investors allow renters to bring a pet into a property? Check out these reasons why pet-friendly properties may benefit your ROI, courtesy of the top property management company Atlanta has to offer!
Pets Help Expand Your Tenant Pool
When renters live in an area where not many rental properties accept pets, allowing pets may give you more visibility and help you expand your tenant pool.
Most rental property owners experience pet owning-renters as responsible tenants. So, when pet owners learn that your properties allow animals, you broaden your pool of quality tenant candidates. Plus, the opposite is true. When excluding pets and pet owners from your properties, you limit your prospective tenant options and can be forced to settle for low-quality renters and fewer options.
Pet-Friendly Properties Can Reduce Tenant Turnover
Pet owners are often excellent renters because they don't want to leave a rental property that allows pets. Since pet-friendly properties can be in high demand (with low availability), these residents usually prefer to renew their lease rather than move from a pet-friendly property and risk not finding a new home that allows pets.
Real estate investors who rent out properties with pet-friendly policies experience better retention and fewer costly turnovers, which mean higher profits.
How Should Property Owners Allow Pets?
Before you feel like you have to open the door to any animal to boost ROI, property managers recommend putting some best practices in place. Allowing the right pets and requiring renters to follow rules helps protect your property for a more enjoyable experience.
Create a Pet Policy
Property owners should create a pet policy and guidelines before letting tenants bring pets into a rental unit. If you’re not sure what this involves, a search for “property management near me” can lead you to experts who can help.
A pet policy should include:
- Breed restrictions
- The types of pets are allowed
- The maximum number of pets per property
- Pet size or weight restrictions
- Exceptions to the rules
- Pet owner rules to follow
- How tenants should request an allowed pet
While some tenants may be happy to bring their cats or dogs along with them when they move in, many landlords require that pets be approved in advance and that both tenant and landlord sign an additional pet addendum. This way, property owners don’t face unexpected pet damage in the property or face potential liabilities as a result of an unauthorized pet in a rental unit.
Ask for A Pet Security Deposit
Pets are increasingly becoming a staple in many households. While many people believe that having a pet will add to the enjoyment of their rental property, there are also some potential downsides, including destructive pet behavior.
When allowing tenants to keep pets, it's crucial to collect a security deposit for any damages that the pet may cause. A pet deposit can cover any expenses related to repairs or replacements due to the pet's actions.
Charge a Monthly Pet Fee
When considering whether or not to allow pets in a rental property, it is important to understand the associated costs. Work with a property manager and your attorney to determine if an animal fee (or simply a higher rent amount) follows landlord-tenant laws for Atlanta.
In many cases, it’s easier to increase the rent for pet-friendly properties to generate more revenue and cover the costs of pet damage in the rental unit.
Screen Every Pet
When maximizing ROIs for rental properties and allowing pets, one of the most important things to do is screen pets and their owners. This includes ensuring that any pets allowed to live on the property have a history of good behavior, won't cause costly damage to the rental property, and won’t be a nuisance to other tenants.
Owners can avoid potential headaches when putting a pet screening policy in place for all residents that request a pet.
Increase ROI With Your Pet-Friendly Properties and An Atlanta Property Management Company
Atlanta property management companies can help you boost ROI by helping you develop effective pet policies and screening practices for pet-friendly rentals. If you decide to accept pets in your rental property, the right property managers can give you peace of mind by handling renters and animals and enforcing the lease rules.
Revolution Rental Management is here to support real estate investors by optimizing returns! If you're thinking about turning a rental into a pet-friendly property, contact us to find out how we can help with our residential property management services.
For a deeper dive into boosting returns for a rental property, download our free resource, "10 Things You Should Do To Increase the ROI for Your Investment Property."