Why Allowing Pets in Your Rental Property is a Smart Investment Decision
When it comes to renting out a property, the question often arises: should you allow pets? For many landlords, the thought of pets in their rental homes can trigger concerns about potential damages, noise complaints, and the general hassle of managing animals. However, if you’re a real estate investor in Arizona, the answer to whether you should allow pets in your rental property is almost always a resounding “Yes.” In fact, if the animal assists with a health condition, you may not have much of a choice. But even beyond legal obligations, allowing pets can actually work in your favor. Here’s why allowing pets in your rental properties is not just the right thing to do, but also a savvy business decision.
The Growing Demand for Pet-Friendly Rentals
Over the years, pets have become an integral part of many households. In fact, more than two-thirds of renters have at least one pet. This statistic alone should make any landlord pause and reconsider restrictive pet policies. By limiting pets, you are substantially decreasing your chances of finding a great tenant quickly. The rental market is competitive, and tenants with pets are often willing to pay a premium for a place that welcomes their furry friends. By opening your doors to pet owners, you are tapping into a large and growing market of responsible renters who prioritize finding a home where their pets are welcome.
The Importance of Quality Tenants Over Pet Concerns
As a landlord, the quality of the tenant should be your primary concern. Whether or not they have pets is secondary. Responsible people take care of their home and their pets. A tenant who is responsible for paying rent on time, maintaining the property, and communicating openly is far more valuable than a tenant who doesn’t have a pet. The reality is that a responsible pet owner is likely to be just as conscientious about your property as they are about their pet. They understand that their ability to keep a roof over their head depends on keeping your property in good condition.
Restrictive Pet Policies Encourage Dishonesty
One of the unintended consequences of restrictive pet policies is that they often encourage tenants to be less than honest. Picture this: you’re doing a property visit and you notice evidence of a pet—a dog bed in the corner, perhaps, or some pet toys. When you ask about it, the tenant quickly replies, “Oh, I’m just watching this puppy for the day.” Sound familiar? The truth is, many tenants who are otherwise excellent candidates will bend the truth if they feel they have no other choice.
By being overly strict about pets, you might inadvertently push good tenants into this kind of dishonesty. A tenant who feels they have to hide their pet is not going to be forthcoming about any issues that arise, such as pet-related damage or noise complaints. This can lead to larger problems down the line that could have been easily managed if there was open communication from the start.
The Issue with Assistive Animal Exemptions
Another challenge that comes with restrictive pet policies is the potential for tenants to seek exemptions for assistive animals. Under the Fair Housing Act, tenants with a disability are allowed to have an assistive animal, even if your property has a no-pet policy. These animals are not considered pets, so pet deposits and fees do not apply. While this is important for ensuring equal housing opportunities for all, it can be frustrating for landlords who feel they have no control over the situation.
However, by adopting a more flexible pet policy, you can avoid some of the tension that comes with these exemptions. If tenants know that pets are allowed, they may be less likely to seek out an exemption. Moreover, tenants with assistive animals often have legitimate needs and are typically responsible individuals. By allowing pets, you’re signaling to these tenants that you’re an accommodating landlord, which can lead to a more positive and cooperative relationship.
The Pitfalls of Breed Restrictions
Breed restrictions are another common issue for landlords. Many landlords implement breed restrictions out of fear of potential damage or liability, particularly when it comes to breeds with a reputation for aggression, like pit bulls. However, these restrictions often lead to dishonesty as well. Pit bull owners, for example, might get very creative with describing their dogs as “terrier-mix” or some other less controversial breed.
This can create problems down the road if the true breed of the dog comes to light. Instead of focusing on breed restrictions, a more effective approach is to ensure that your tenants carry renters insurance that includes dog-bite coverage and does not exclude any specific breeds. This way, you’re protecting yourself from potential liability without pushing tenants to be dishonest about their pets.
Protecting Yourself with Renters Insurance
One of the best ways to protect yourself as a landlord while allowing pets is to require renters insurance. This insurance should specifically include coverage for dog bites and other pet-related incidents. Ambulance-chasing lawyers can be a landlord’s worst nightmare, especially in a litigious society. By ensuring that your tenants have appropriate coverage, you can minimize your financial risk while still accommodating pets in your rental property.
Renters insurance not only protects you, but it also demonstrates that your tenants are responsible and prepared for the unexpected. A tenant who is willing to invest in insurance is likely to be a tenant who takes care of your property and values their living situation. This added layer of security can give you peace of mind while also allowing you to cater to a broader range of tenants.
The Benefits of Allowing Pets
So, why should you allow pets in your rental property? The benefits are clear. By allowing pets, you:
- Attract a Larger Pool of Tenants: With more than two-thirds of renters owning pets, a pet-friendly policy opens your property to a significant portion of the market. This can help you find a quality tenant more quickly and reduce the amount of time your property sits vacant.
- Increase Tenant Satisfaction and Retention: Tenants who are allowed to keep their pets are more likely to be happy with their living situation and stay longer. This reduces turnover, which in turn saves you money on cleaning, repairs, and marketing for new tenants.
- Command Higher Rents: Pet-friendly properties often command higher rents. Pet owners are typically willing to pay more for a property that accommodates their pets. This can increase your rental income and improve your overall return on investment.
- Reduce Dishonesty and Foster Open Communication: When tenants know that pets are allowed, they are more likely to be honest with you about their situation. This fosters a better landlord-tenant relationship and makes it easier to address any issues that arise.
- Avoid Legal Complications: By allowing pets and requiring appropriate insurance coverage, you protect yourself from potential legal issues related to breed restrictions, assistive animals, and undisclosed pets. This proactive approach can save you headaches and money in the long run.
How to Implement a Pet-Friendly Policy
If you’re convinced that allowing pets is the right move for your rental property, here are some tips on how to implement a pet-friendly policy that works for both you and your tenants:
- Set Clear Guidelines: Outline your pet policy in your lease agreement. Specify the types of pets allowed, any size or weight limits, and any other rules that tenants must follow. For example, you might require pets to be spayed or neutered, up-to-date on vaccinations, and well-behaved.
- Require a Pet Deposit or Pet Rent: While assistive animals are exempt from pet fees, you can still require a refundable pet deposit or a monthly pet rent for other pets. This can help cover any potential damage caused by pets.
- Mandate Renters Insurance: As mentioned earlier, require your tenants to carry renters insurance that includes coverage for pet-related incidents. This protects you from liability and ensures that your tenants are prepared to handle any issues that arise.
- Conduct Regular Inspections: To ensure that pets are not causing damage to your property, conduct regular inspections. This gives you an opportunity to address any issues early on and work with your tenants to resolve them.
- Be Flexible and Open-Minded: Finally, be willing to work with your tenants. If they have a pet that falls outside your usual guidelines, consider their situation on a case-by-case basis. A little flexibility can go a long way in building a positive relationship with your tenants.
Conclusion
In today’s rental market, allowing pets is not just a compassionate choice—it’s a smart business decision. By opening your rental property to pet owners, you can attract a larger pool of tenants, increase tenant satisfaction and retention, and ultimately improve your bottom line. While there are risks involved, these can be mitigated with clear guidelines, appropriate insurance, and open communication. So, the next time you’re considering whether to allow pets in your rental property, remember that the answer is almost always “Yes.” In doing so, you’ll be setting yourself up for success as a landlord in Arizona’s competitive real estate market. As Arizona Property Managers, Home Ladder has created a robust screening process for all rental applications.
