Do Pets Mean More Rental Income?
It’s estimated that more than half of the rental homes in Australia don’t allow pets. But if you’re renting a property, you might want to consider changing a current no pets policy.
While you want to prevent possible pet damage to your apartment, allowing pets may actually be a great opportunity for you. They’re a great way to find a reliable tenant, and a potential avenue to receive more money from your rental property.
More Potential Renters
When people who own a pet search for a rental property, they’ll need one that allows their pets. Of course, there are people who are able to hide their pets, but actually allowing pets yourself opens up the door to a much wider range of potential tenants. This means that you’ll be more likely to receive a higher rent, along with tenants who stay for longer.
You’re especially more likely to get a tenant if you allow pets since many young people with pets are looking for the right place to settle down. This gives you more options when it comes to choosing the right renter instead of settling for someone just to get some repayment for your investment in the form of rent every month.
Higher Rent, Consistent Tenants
While you can’t charge an extra pet bond to cover potential damage, you can increase the rent to offset any risk you have when it comes to renting to someone with a pet. When you do find a tenant for the place, it’s likely they’ll stay for longer and consistently pay that rent.
They’d rather stay with you than look around for another place that allows pets. Since you’re providing a comfortable place for their pets too, they’ll be more likely to treat your property as their home and end up staying for longer.
You may be able to receive more rent, but there are some issues with allowing pets too. For instance, if you have a nice garden outdoors, you may not want someone who has a big dog potentially destroying it.
You’ll have to expect some sort of damage when it comes to allowing for pets though, but this is what allows you to increase the rent. You can also offset any damage with a good landlord insurance policy.
Talk to your property manager to get a pet clause into your lease. This works to protect your investment in the case of any damage, as the tenant will be obligated to rectify the damage done at the end of the lease. Add in this clause to your landlord insurance policy too in order to further reduce your risk of renting out to people with pets.
It can be risky to rent out to pets. You don’t want a large dog that causes trouble or an unruly cat who refuses to use the litter box and instead uses your carpet. Damage is the biggest concern when it comes to allowing pets, yet allowing pets may end up getting you more rental income in your pocket in the long run.
Just make sure that you protect yourself with a good insurance policy and a clause on your lease before you set that higher rent and look for a consistent tenant.