Landlords Who Allow Pets Are Likely to See 20-30% More in Rent Than Those Who Do Not
DALLAS– Those in the Dallas property management industry may be overlooking a way to increase their profitability by adding pet-friendly units to their investment portfolios. In a nationwide study conducted by FIREPAW, a non-profit organization dedicated to handling animal welfare services, it was found that property managers who allow animals in their rental properties are seeing an increase in their bottom line profits. Their research found that the biggest reason for animals to be relinquished by their owners is due to housing issues where the property owner will not allow the animal. Even though pet owners are willing to pay more in rent to keep their animals, there is still a shortage of landlords willing to accept pets.
“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 Don Lawby, President of Property Management Business Solutions, the franchisor of Specialized Property Management. “Specialized Property Management encourages Dallas property managers to allow pets whenever possible as a means to assist them in achieving financial goals faster.”
The study clearly indicates the rent differential between housing accepting animals and those who do not was 20-30% higher on average, which equates to an average overall rent for participants in the study coming in at $1070 per month. Other benefits for landlords that allow pets include:
- Longer lengths of tenancy
- Lower vacancy rates
- Less marketing needed per unit
- More applications received per unit
Most Dallas property management businesses have concerns about potential damage to the property by allowing pets, the noise factor bothering other tenants who may not have pet, and worries about issues with insurance. While it is true that allowing pets does come with a few increased insurance costs for Dallas property managers, the relatively small costs are offset by the premium rent received by pet friendly housing. While some damage is reported by landlords who allow pets in their units, the cost averaged $430, which is far less than the rent deposit paid. Oftentimes landlords will subtract these damages from that deposit and not be out any money. In fact, the data collected from this study shows the amounts of damage from tenants with pets is only slightly higher than that caused by tenants without pets.
FIREPAW works with landlords and property managers to help them maximize their profits while minimizing damages associated with pet friendly housing. The non-profit organization created a Companion Animal Renters Program (CARP) that offers economic assessment, needs assessment, tailor-made programs, customized pet policy and pet agreements, and a custom made pet perk package.
Specialized Property Management is the nation’s leading property management firm. With nearly 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 save property managers time, money and the headache often associated with property management. For more information on their services, visit www.specializeddallas.com