Property managers and rental property investors are always looking for opportunities to increase ROI. Better tenants and less turnover create solid cash flow for your rental property business. However, you may be thinking of ways to generate more interest in your properties.
In addition to asking, "how much can I rent my house for," it's helpful to ask what you can do to increase tenant retention and find more long-term residents. Aside from doing costly upgrades, you may want to consider allowing pets in your properties. With insights from the best property management company Detroit offers, check out these reasons why pet-friendly properties can be beneficial to your ROI!
Maximize ROI by Allowing Pets in Your Rental Property
Before making changes, the right property managers will let you know that it's essential to consider how changes to your rental property policies will impact your ROI. For example, will a change increase, decrease, or have no effect on your returns? When it comes to allowing pets in a rental, a property manager knows that most investors experience plenty of benefits.
Expand the Pool of Available Tenants
No matter what you charge for rent, the ideal amount won't help much if you don't fill your rental properties with tenants. When a property owner decides to allow renters to bring their pets along, they open the door to a greater pool of potential residents! Pet owners are a large demographic of people that would otherwise be shut out of your tenant screening process simply because you haven't allowed pets.
However, approximately 85 million people own pets in the U.S.—but not all rentals allow pets. With limited options for rental homes that can house their pets, renters need properties like yours! Rental property owners can take advantage of this challenging situation for renters with pets by offering safe rental homes in the Metro Detroit area. In most cases, pet owners are excellent residents that make it well worth it to deliver pet-friendly homes.
Tenants Will Stay with You For More Than One Lease Term
Pet owners can be some of the best tenants because they may be more apt to stay in a rental property once they get there. They don't want to go through the hassle of finding a new home that allows pets, so it's often easier to renew their lease once they're in your rental property. As a result, real estate investors with pet-friendly rentals save money without needing frequent tenant screenings or marketing costs. Plus, better retention rates are one of the best ways to improve returns.
As you fill your vacant rental properties with dedicated tenants who might be "renters for life," you decrease your turnover rate. Real estate investors can also charge higher rent amounts as a premium for delivering rental units that allow pets. With higher rental rates and more lease renewals, property owners maximize ROIs!
How To Allow Pets in Your Property
Before allowing pets in your rental, it's a good idea to have set pet policies and guidelines. Like tenant screening, property management companies recommend conducting pet screenings and creating a pet addendum for the lease agreement. A property management company can help you craft an addendum. A pet policy that protects your properties and helps renters understand the rules includes several key elements.
Approved Pet Weight
Your criteria for allowed pets can include a weight limit. For example, if you have a smaller property or don't like the idea of big dogs in the home, limiting the weight of a pet is a smart way to avoid potential issues.
Keep the Pet in Check
Property owners should ensure that pet owners keep their animals up to date on all their shots and in good health. Your pet policy should include rules to require proof of annual pet vaccinations and check-ups to avoid housing an animal that could be a health hazard to other tenants or neighbors.
Collect a Pet Fee
Some property owners collect a pet fee as an added rent amount. When considering this option, keep in mind the cost of rent and work with a property manager and your lawyer to make the fee follows landlord-tenant laws.
Pet Security Deposit
Even if you don't charge a pet fee, collecting a pet security deposit is common. This deposit is separate from the general security amount collected before the lease term is collected and can be applied to damages caused by pets. Make sure you have a property manager help you note this as a separate amount into the lease and detail the type of damage that is considered "pet damage" vs. what is normal "wear and tear."
A Detroit Property Management Company Helps Investors Benefit From Pets
Having a property management company assist you with pet-friendly properties is the best way to benefit from it! They can advise you on the best approach, write the lease addendum and develop pet deposit guidelines for properties. If you're ready to talk about how pets can boost your ROI, reach out to learn more about Own It Detroit's property management services!
Learn more about better returns when downloading our free guide, "10 Things You Should Do To Increase the ROI for Your Investment Property."