Property managers who allow animals in their rental properties are seeing an increase in their monthly cash flow. According to the World Population Review, almost 60% of Iowa residents have a furry family member.
“Because of their ability to charge a separate pet deposit that can range anywhere from 40-85% of the rent up front, property owners who allow pets are seeing their bottom lines increase substantially,” said Lukas Krause, Chief Executive Officer of Property Management Business Solutions, the franchisor of Real Property Management. “We encourage property managers to allow pets to be more inclusive, while simultaneously reaching their financial goals a little faster.”
Real estate investors who allow pets are likely to see a 20-30% increase in monthly cash flow than those who do not
The study also clearly indicates the rent differential between housing accepting animals and those who do not was 20-30% higher on average. That equates to an average overall rent for participants in the study coming in at $1,070 per month. Other benefits for landlords that allow pets include:
- Longer lengths of tenancy
- Lower vacancy rates
- Less marketing needed per unit
- More applications received per unit
Most investment property owners have concerns about potential damage to the property, the noise bothering other tenants, and insurance issues. Allowing pets does come with a few increased insurance costs, but they are typically offset by the pet rent. Some damage is reported by landlords who allow pets in their units, but usually, the damage is less than half of the deposit. Landlords can subtract these damages from that deposit and not be out any money. The data collected from this study shows the amounts of damage from tenants with pets is only slightly higher than that caused by tenants without.
They’re a part of the family. So we should treat them like such.
Pet fees will not detract people from wanting to rent from you. In fact, it is more attractive to potential tenants because they will see that you do accept furry family members. One-time pet fees, refundable pet deposits, and monthly pet rent to help pay for normal wear and tear that pets bring to a home. Ready to learn more? Schedule a consultation with us today.