About 30% of households in New Jersey own a dog. Almost 20% have a cat. With this many families owning a pet, why are you not allowing pets in a rental property? Before you make a decision, consider the pros and cons of allowing tenants with pets.
Pro: Larger Applicant Pool
Having a pet-friendly rental can make your property more competitive and open you up to a much larger applicant pool.
Applicants who have pets would normally be automatically disqualified. But now, you can consider them and their other desirable qualities.
Pro: Higher Quality Tenants
Generally, people with pets feel a sense of responsibility. They make a commitment to taking care of a living creature for the next decade or so.
This sense of responsibility can translate to them being a more responsible tenant. This makes them more likely to take better care of your rental.
Pro: Reduced Tenant Turnover
Tenants with pets tend to be more stable. They are less likely to move around, which can mean reduced tenant turnover.
As a landlord, having a tenant renew their lease is desirable. It means reduced overhead for your rental because you save money by not having to pay for marketing, tenant screening, and property cleaning.
Pro: Possible Increased Rental Income
Accepting tenants with pets can present an opportunity for increased profits. As long as you clearly explain your rental property pet policies in the lease, you can charge a pet fee.
A pet fee is different from a pet deposit in that it is not returned to the tenant. Pet fees could be anywhere from a few hundred dollars to a thousand dollars.
Con: Potential Property Damage
While some tenants have well-behaved pets, others do not. When you allow pets into your rental, you risk that animal causing property damage. You can offset this by charging a security deposit.
If a tenant's pet causes damage beyond normal wear and tear, you can keep a portion or all of the security deposit to make repairs. New Jersey law limits the total security deposit to not exceed one and a half month's rent.
When handling pet damage currently occurring, you may be able to evict the tenant, which prevents further damage.
Con: Potential Liability
The average insurance claim for a dog bite in New Jersey is $62,295. If you allow a dangerous animal onto your property, you may be liable for a dog bite. New Jersey law, NJ Rev Stat § 4:19-16, holds dog owners strictly liable.
Thankfully, you can insulate yourself from risk. Place restrictions by not allowing dangerous animals or those who exhibit dangerous behavior.
Consider Allowing Pets in a Rental Property
Managing tenants with pets comes with some potential pitfalls, but they are far outweighed by the potential benefits. By allowing pets in a rental property, you can increase your applicant pool size, reduce tenant over, and increase rental property income. The team at PMI Inspired helps rental property owners maximize their property's income potential.
Request a rental analysis and learn about its earning potential from the rental experts.
