Study Shows Five Reasons Why It Makes Sense For Property Owners To Allow Pets In Their Rental Homes and Apartments
A FIREPAW study found that apartments that accepted pets not only didn’t lose money, they actually made more, to the tune of nearly $2,300 per apartment, per year.
Here are 5 reasons to consider allowing pets in your homes or apartments:
- Faster unit turnover
“Somewhere in the neighborhood of 70% of your tenants are going to have some kind of pet, so you can’t just say, ‘No pets allowed,'” says Fred Thompson, president of the National Association of Residential Property Managers, a trade group. “If you do, you’re going to see an extended vacancy period on your investment and that doesn’t work out long term.
“Look at it in this sense: If it took an extra two months at $1,000, then … not taking a pet costs $2,000,” Thompson says. “Well, $2,000 will pay for a lot of carpet.”
Pet-friendly apartments rented in 19 days versus 29 days for non-pet-friendly units in the 2003 study, when 9% of apartments surveyed allowed all pets, 44% limited pets by type or size (most allowed cats) and only 11% allowed large dogs.
- A bigger pool of tenants
“When you have higher demand, you can be more selective and you can actually get better tenants if you allow pets,” says Frank, an economist and consultant to landlords on effective pet policy.
- Reduced turnover rates
In the FIREPAW survey, tenants in pet-friendly rentals stayed an average of 46 months, compared with 18 months for those in rentals prohibiting pets.
- Tenants who cause less damage
The average worst damage from tenants with pets, as reported by landlords in the FIREPAW survey, was $430, an amount typically covered by the security deposit.
The bigger risk? Children. More damage is done to homes/units by children than pets according to the study.
- Higher rent
Higher demand increases prices. Apartments that allowed for pets were able to charge 20% to 30% more rent than those that didn’t allow pets
The FIREPAW survey found that the apartments that allowed pets made, on average, $2,300 more per unit, per year.
To read the study in more detail, go here http://realestate.msn.com/article.aspx?cp-documentid=19186150#scptid