Increase Profit Just By Allowing Pets
Saying No to Fido May Decrease Your Applicant Pool
Studies Show that Chicago Property Owners who allow pets increase their profit potential
according to research by the nonprofit firm Firepaw, an organization dedicated to the welfare of animals. Chicago 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?
Though there may be concerns about allowing pets in your rental home, the benefits include:
20-30% higher rent rates to cover increase insurance costs, damage to the property, and pet premiums
Long term tenants due to shortage of pet-friendly homes
Lower vacancy rates
Larger application pool when property is available
Less marketing efforts needed to find a qualified tenant
The biggest concerns expressed about allowing pets in rental property are:
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.