Allowing pets is an easy opportunity to boost residential real estate investor’s ROI, but it needs to be done correctly. In fac, a nationwide study by FIREPAW, which specializes in animal welfare services, revealed that the primary reason pet owners surrender their pets is due to housing constraints. Despite pet owners’ willingness to pay higher rents to accommodate their animals, there remains a shortage of residential real estate investors willing to accommodate pets.

We advise all landlords to consider allowing pets when they pose no risk to their properties or neighbors. From a profitability standpoint, implementing a separate pet deposit can yield additional income with each lease. FIREPAW’s study also indicates that landlords and property owners who permit pets typically command rental rates 25% higher than those who do not. Other benefits of pet-friendly policies for landlords include:

• Extended Tenancy: Pet-owning tenants tend to stay in one place for longer durations.
• Reduced Vacancy Rates: Pet-friendly accommodations attract more applicants, leading to lower vacancy rates.
• Increased Applicant Pool: Pet-friendly living arrangements are in higher demand than those that prohibit pets.

While it’s true that permitting pets can entail slightly higher insurance premiums, these relatively minor expenses are offset by the elevated rent garnered from pet-friendly housing. Tenants with pets typically pay a pet deposit, allowing landlords to deduct any damages from this deposit without incurring additional costs. In fact, data from the study referenced above indicates that the damage caused by tenants with pets is not significantly greater than that caused by tenants without pets.

This is all goes without saying that breed and reasonable size and quantity restrictions need to be put in place prior to accepting a pet loving applicant.