If you want to become a successful real estate investor and maximize your profits, you need to develop a solid strategy.
It's not as simple as buying properties and renting them out. There are a lot of important decisions you need to make, such as whether or not to allow pets in your rental properties. You'll find various pros and cons to doing so, so it's important to consider both before making your decision.
In this guide, we'll explain why you may or may not want to allow pets in a rental property. Keep reading for more.
Benefits of Allowing Pets in a Rental Property
Some landlords naturally assume that pets just cause more hassle and therefore don't allow them. There are, however, several benefits to allowing pets in a rental property.
Larger Tenant Pool
Pet-friendly rentals automatically have a larger tenant pool. About 62% of Americans have pets, so if you don't allow them, you'll immediately be cutting out a huge chunk of potential renters.
Longer Tenancies
In most cases, people who own pets are looking for somewhere to call home for a long time. This means that they may be happy to sign longer leases, and will be more likely to renew theirs when it expires. A rental property management company can also help with lease renewals to keep your properties occupied.
Higher Rental Price
There are some common pet policies for rentals, and one thing that many landlords do is charge a higher rental price. As such, by allowing pets you can directly increase your overall profits.
Drawbacks of Allowing Pets in a Rental Property
While these benefits can make quite a difference, don't rush into things. Managing pets in housing isn't easy, and there are some drawbacks to consider.
Potential Property Damage
One of the main issues is that pets can cause property damage. They might chew furniture, scratch floors, urinate on carpets, and more. This is the main reason for charging more rent, as you may end up needing to use these extra funds to cover repair costs.
Bad Odors
As much as people love them, pets can often let off some unpleasant smells. This isn't always a problem, but in bad cases, these odors can linger. You may need to spend extra money on cleaning when the tenant leaves to deal with this.
Disturbance to Neighbors
Pets can make a lot of noise, and they may disturb neighbors. This can lead to noise complaints that you otherwise probably wouldn't have to worry about. You could set tenant pet guidelines only, allowing specific pets to avoid this.
Should You Allow Pets in Your Rental Properties?
As you can see, there are various pros and cons of allowing pets in a rental property. You need to weigh these up to make the best decision. A reliable property manager can help guide you with this and various other elements of being a landlord.
PMI Yellowstone is a full-service real estate asset management company serving Cody and the surrounding communities. We operate under the PMI brand and our experienced team uses cutting-edge technology to deliver the best level of service. Take a look at our property management page to find out more about what we do.
