A majority of Americans are pet owners. In fact, a recent survey concluded that 62% of households have a pet. Dogs and cats are by far the most popular pets to adopt.
As a property owner, your job is to maximize revenue. You may feel reluctant to shrink your rental property tenant pool by not allowing pet owners.
Read on to learn the pros and cons of allowing pets in a rental property. Explore topics such as rental property damage and terms to include in the lease agreement.
What Are the Advantages of Leasing to Pet Owners?
Without steady tenants, you will find earning income on your rental property difficult. It is unwise to turn away potential tenants who can fill a vacancy.
Pet owners give properties a sense of community. They walk their dogs and socialize with other pet owners. There is an indirect benefit of attracting more tenants with a show of community. This is important in an upper-middle-class area like Schaumburg, Illinois.
What Are the Disadvantages?
Pets pose a significant risk to your properties. Dogs and cats are well-known for leaving rental property damaged in their wake.
They scratch and rip up walls and carpets. Even hardwood floors are vulnerable to their claws. In some cases, they go to the bathroom inside the home. This may leave permanent stains, smells, and unsightly damage.
There is also liability risk associated with pet-friendly properties. Consider a situation in which a dog is off the leash and bites another community member or neighbor. Victims of a pet attack may target a property owner as part of their legal action.
How Can Property Owners Mitigate These Risks?
The good news is that property owners can address these risks in the lease agreement. Rental tenant terms and conditions provide protection for the property owner.
Here, you can schedule property inspections to ensure there is no property damage. You can increase rental property pricing to allow for a pet in the home. Extra rental payments can be used to buy additional insurance and repair any damage.
Some property owners collect a higher security deposit for tenants with pets. This is because the likelihood of damage is higher. They want a larger pool of funds to make repairs with.
You can also set strict rules and consequences in the lease agreement. For example, the pet needs to be on a leash when walking in the community.
The lease agreement may forewarn the tenant that fees and potential eviction are on the table if the rules aren't followed.
Your Guide to Pets in a Rental Property
You are now ready to operate a pet-friendly property in Schaumburg, Illinois. Pets are an integral part of the American family. Many people view their pets as family members or one of their children.
The key is putting protections in place to deal with pets. Taking steps like collecting a larger security deposit or writing out a pet policy in the lease agreement goes a long way.
If you need help dealing with pets in a rental property, contact us today at PMI Chi-Town to speak with an expert.