Renting to tenants with pets has its pros and cons. As a property owner, you’ll need to weigh your options carefully before deciding if you should allow pets in your rental property.

The following are the pros and cons of renting to tenants with pets. You’ll also learn valuable tips on how to minimize potential risks if you allow pets into your rental property.

What Are the Pros of Allowing Pets Into Your Rental Property?

As a landlord, allowing pets into your rental property can be beneficial in several ways. They include the following:

Increase Your Rental Income

By allowing pets into your rental property, you may be able to boost your rental income in terms of a pet deposit or fee. Some states have restrictions on how much landlords can charge, so make sure to stay compliant with local laws.

Luckily for Indiana landlords, you can charge an additional deposit for pets. The amount, plus the security deposit, must not exceed 1.5X the monthly rent.

For instance, if the monthly rent is $2,000, then the additional pet deposit plus any other deposits must not exceed $3,000. This amount is refundable at the end of the lease term, less any allowable deductions.

Alternatively, you can charge a pet rent. The range typically falls between $25 and $50 a month per pet, in addition to the monthly rent.

Attract Quality Tenants

Taking care of a pet is a job in and of itself. While doing so can be a rewarding experience, it also comes with a ton of responsibilities. Pet owners will have to, among other things, ensure their pet has:

• Regular access to fresh, clean food and water.
• A comfortable and safe space.
• A clean living area.

That’s why, generally, pet owners make responsible tenants. This is because they’re more accustomed to the huge responsibility of taking care of an animal, meaning that they are more likely to replicate this with your rental and be great tenants. 

Increase Tenant Happiness

Companion animals can be great stress relievers. Some studies have shown that interacting with animals has been shown to decrease levels of cortisol and reduce blood pressure.

Other research on human-animal interactions has shown that pets can boost mood, social support feelings, and reduce loneliness.

As you probably know, a happy tenant is a happy landlord. On your part, you may be able to enjoy long-term tenancies and optimal ROI.

Expand Your Pool of Prospective Tenants

Allowing pets in your rental property therefore means that you’ll have an expanded pool of prospects to choose from. As a result, this can mean increased chances of finding and renting to your dream tenant.

Score a Long-Term Tenant

Some landlords completely shy away from the idea of renting to tenants with pets. According to them, they erroneously view pets as high maintenance.

This means that tenants with pets have limited options in the rental market, which you can take advantage of and attract long-term tenants.

What Are the Risks of Renting to Tenants With Pets?

Renting to tenants with pets has its risks. Fortunately, you may be able to manage these with the right contingencies. The following are some of the issues that pets can present in your rental home:

Property Damage

Allowing pets into your property means that you should expect some measure of damage. Dogs and cats can chew on furniture, door frames, baseboards, and even electrical cords.

Cats can scratch curtains, furniture, and walls. Untrained pets can also urinate or defecate on floors, carpets, or furniture. This means that you may have to continuously repair and maintain your rental property.

Noise

Animals are just that – animals. They’ll usually make noise and may even cause a ruckus. Due to this, you may experience more complaints from neighbors and other tenants.

Unpleasant Odors

This is another risk of allowing pets into your rental property. After a tenant moves out, you may have to hire a professional cleaning service to get rid of any pet odors in the home.

Injuries to Others

When an animal feels threatened or afraid, it can end up injuring people or other animals. This is especially true if the animal hasn’t undergone any form of training.

How Can a Landlord Mitigate the Risks of Allowing Pets?

Fortunately for savvy landlords, such risks are manageable by implementing few strategies.  They are as follows:

Have a Pet Policy

Just like you would with a lease agreement, make sure you have a clear and detailed pet policy. The following are some of the things you’ll want to cover:

• The number, breed, and size of pets permitted.
• The tenant’s responsibility when it comes to pet care.
• The amount of the pet deposit or pet fee.
• Requirements for vaccinations and licensing.

Update Your Landlord Insurance Coverage

If you allow pets into your property, it means you’ll have increased liability. As such, make sure to consult with your insurance agent to find out whether you need to update your current package. Some insurers usually have strict policies when it comes to particular breeds of pets.

Comply With Indiana Fair Housing Laws

As per the Federal Fair Housing Act, service animals aren’t considered pets. As such, you cannot screen them the same way you’d do with traditional pets. You cannot say no to such pets even if you have a clear no-pets policy.

Conclusion

The benefits of renting to tenants with pets are numerous. From attracting long-term tenants, to earning more income, to expanding your renter’s pool, you’ll be able to fill vacancies and enhance tenant satisfaction. It’s also important to have some contingencies in place to protect your bottom line.

If you’d like expert help in screening a pet or overall management of your Indianapolis rental property, look no further than Specialized PM Indianapolis. Get in touch with us now to learn how our exclusive technology can help maximize your returns!