How You Can Increase Your Rental Income by Allowing Pets

Mar 24, 2020 | Landlord Advice

With around 29 million pets in our country, according to the Animal Medicine Australia report, it stands to reason that pets are pretty popular.

According to another AMA report, 31% of pet owners are willing to pay extra for the privilege of having one in their rented property.

Recent Changes in Rental Laws Affecting Pets

Recently laws have been passed that ease the process of keeping pets for tenants.

However, the process as it currently stands is tedious and runs the risk of ruining a tenants’ relationship with their landlord and property manager.

Pets Do Cause Damage

There is no point sidestepping this; pets will inevitably cause damage to the property. However, this factor is diminished when you have responsible tenants who have a history of acting responsibly.

Rewarding Landlords Who Allow Pets

It will be a win-win for all the stakeholders if we manage to create incentives for landlords to allow tenants to keep pets.

The extra rent tenants are willing to pay for pets will easily cover the cost incurred by our furry friends damaging the property.

Seize the Opportunity

Attention landlords, there is an opportunity to provide a pet-friendly rental property in Queensland, Australia.

With the economic turmoil from COVID-19 looming ahead, this is the time to be forward-thinking and anticipate a new market trend.

Rental properties that allow pets might experience fewer vacancies since the demand for properties might be less than the supply because of the economic downturn.

Pet Owners Earn a Higher Income

According to the Animal Medicine Australia report, 68% of pet owners earn in the $70,000 – $100,000 bracket. A well-settled tenant will not only pay more rent but will also submit it on time regularly. Pet owners are more likely to stay longer.

They tend to earn well and are looking for an excellent place to settle in. Young people without pets are moving around more often—tenants living long-term increases a landlord’s revenue since it equates to less vacancy.

Some Tenants Hide Pets Anyway

Some tenants will attempt to hide pets, might as well expand your tenant base list, and declare your property a pet-friendly zone.

Screen Bad Pet Owners

There is no denying that pets can be a potential liability to your property. What we offer at Investarent is professional screening of all prospective tenants, using our years of first-hand experience to make sure your tenants respect your property as their own.

We will sift through the wide array of candidates and single out the lousy pet owners for exclusion. We are cautious with our process and ensure the tenant selected is responsible for a properly trained pet.

We take reference letters from previous landlords and property managers into the equation. Rest assured, we will find the perfect tenant who is responsible for his or her pet.

Pet Clauses in Leases and Rental Agreement

Pet clauses can be added to ensure that any damage caused by pets is reimbursed by the tenant himself to the landlord. This keeps the landlords’ property value intact, and he doesn’t have to face losses in repairing damages to the property.

Landlord / Rental Insurance

The landlord or the tenant can get potential pet damages covered by their insurance. This will further mitigate the risk of allowing tenants to keep pets.

The new law might force you to allow pets in certain circumstances

Landlords are wary of the new rule, and I understand the skepticism. It’s best to get ahead of the problem and tackle it head-on.

Anticipating and engaging the market is your best bet as a landlord. A lot of landlords are considering increasing the rent in anticipation of the inevitable damage caused to the property by pets.

However, the rental market after COVID-19 won’t allow for higher rents.

It is best to include pet clauses to cover damage in the lease and hire a good property manager to screen irresponsible pet owners.

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