We don't normally post other people's blogs but had to post this one for the photo alone!
The current economic recession has led to higher vacancy rates across the country. To cope with these extraordinary times, many landlords have turned to alternative solutions in an attempt to attract tenants. Once considered almost taboo, many landlords are beginning to allow tenants with pets to occupy their properties. Working the verbiage into a residential lease agreement to allow different types of pets has some undeniable incentives.
Incentive 1# Larger Pool of Tenants
Did you know that almost 70% of households own some kind of pet? Put that in terms of prospective tenants, that means that many landlords turn away 7 out 10 applicants without even looking at the rest of the application! In many cases a residential lease agreement could be drawn up with a number of responsible applicants, but because of their pets the opportunity never exists.
Incentive 2# Shorter Vacancy Time
The Foundation for Interdisciplinary Research and Education Promoting Animal Welfare (FIREPAW) may be the only study with real data comparing pet-friendly to non-pet-friendly properties with residential lease agreements. The study found that non-pet friendly units were vacant 14% of the time, compared to 10% of the time for pet-friendly units. Also the length of the vacancy was 10 days shorter.
Incentive 3# Turnover Rate Reduction
That same FIREPAW study found that rental properties that allowed pets experienced an almost 4 year tenancy on average. Properties without pets experienced an average of only 18 months continuous tenancy. This makes for an interesting case given the some of the largest landlord expenses are experienced during property turnover, and the renewal of new residential lease agreements.
Incentive 4# More Money
The basic laws of supply and demand dictate higher rent in cases with animals. With most landlords turning away 70% of the potential tenant population due to animal risks, pet-friendly landlords may charge a premium as they are serving an in demand market niche.
Incentive 5# Reduction in Advertising Costs
Per the FIREPAW study, pet-friendly property managers averaged roughly $15/unit in advertising costs, compared to over double that ($32/unit) for non pet-friendly units. Overall rental units that allowed pets experienced an average of $2,300 more per year than those that didn’t. While the landlord must protect himself from the risks of pets through a strong residential lease agreement, being pet-friendly can have its financial advantages.
Courtesy of Real Estate Investment and Landlord Tips
For starters allowing pets will give landlords a good impression to tenants thus making him pet friendly. There are some good tenants who have pets and by allowing them on the rented property will give pet loving tenants no worries...
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