Study Shows Property Owners Who Allow Pets Increase Their Profit Potential
Grand Rapids – Real Property Management Investment Solutions, the property management leader in Grand Rapids warns that not allowing animals in your rental property may be a costly mistake. According to research by the nonprofit firm Firepaw, an organization dedicated to the welfare of animals, Grand Rapids property owners who allow pets in their rental properties see 20-30% more income than those who do not. According to their nationwide study, animals are most commonly relinquished to shelters due to the owner’s living arrangements, specifically that their landlords do not allow pets.
According to the American Veterinary Association, one out of every two renters have pets, and 35% of those without pets stated they would have them if they were allowed in their current housing situations. With this large amount of renters having pets, and being willing to pay excess rent and deposit money to keep them, it raises the question: are landlords overlooking a potential profit increase by denying pet-friendly rentals?
“Because of their ability to charge a separate pet deposit which can range anywhere from 40-85% of the rent, and charge a larger deposit up front, property owners who allow pets in their properties are seeing their bottom lines increase substantially,” said Lukas Krause, CEO of Property Management Business Solutions, the franchisor of Real Property Management. “Real Property Management encourages property managers to allow pets whenever possible as a means to assist them in achieving financial goals faster.”
Though there may be concerns about allowing pets in your rental home, the benefits include:
- 20-30% higher rent rates to cover increased insurance costs, damage to the property, and pet premiums
- Long term tenants due to a shortage of pet-friendly homes
- Lower vacancy rates
- Larger application pool when the property is available
- Less marketing efforts needed to find a qualified tenant
The biggest concerns expressed about allowing pets in rental property are:
- The noise that bothers other tenants without pets
- Damage to property caused by pets
- Pets not allowed by local municipalities
These concerns are easily solved when you consider that by allowing pets in the property, you are able to both charge a larger upfront deposit and higher monthly rent rates which help to offset the costs of any damage that may occur. According to the research by Firepaw, damage caused by animals is only slightly more than damage caused by humans.
Firepaw is a nonprofit organization that works with landlords to provide pet-friendly housing options and maximize their profits while minimizing the damages associated with pets. They offer a Companion Animal Renters Program (CARP) that offers economic assessment, needs assessment, tailor-made programs, customized pet policies, pet agreements, and a custom-made pet perk package.
Real Property Management Investment Solutions is the nation’s leading property management firm. With over 30 years in the property management industry, there are few problems related to property management that they have not handled before. The company’s goal is to provide unrivaled customer service that saves property managers time, money, and the headache often associated with property management. For more information on their services, contact us today!
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