Pet-friendly rental properties are a good investment

According to the Animal Health Alliance, nearly 5 million of Australia’s 7.6 million households have pets, which is one of the highest rates in the world. With around one-third of Australians renting, it means there is big demand for pet-friendly accommodation.

“It doesn’t make sense for the majority of landlords and agents to have a ‘no pet’ policy on rental tenancies,” says Australian Veterinary Association (AVA) Vice President Dr David Neck. “Recent research shows that well-managed, pet-friendly rentals can be a competitive advantage for those willing to introduce a ‘pet considered’ policy.

“There’s just not enough pet-friendly rental properties to meet demand, and the AVA would like this to change. Pet owning tenants can make very good tenants. They’re generally willing to pay more rent and pet-friendly rental properties rent faster.”

Real Estate Institute of Australia (REIA) Chief Executive Amanda Lynch says there are an estimated 33 million pets in Australia.

“While Australia’s levels of pet ownership have remained relatively static in recent years, the ACAC Report [7th edition] shows that they now stand at 3.41 million dogs, or 36 per cent of households own a dog, and 2.35 million cats, or 23 per cent of households own a cat. In addition, there are approximately 18.4 million fish, 8.1 million birds and over 1 million other pets, including horses, rabbits, guinea pigs and other small animals.

“What this data shows is that Australians love animals, and this includes renters.”

Lynch says there are definite benefits in renting to pet owners.

“We hear from our members who are property managers that renters with pets frequently sign longer leases and are less likely to move as it can be disruptive to the animal. There is also a shortage of rental accommodation that allows pets, so being pet friendly can provide landlords with an advantageous point of difference.”

Is there really a shortage of pet-friendly rental accommodation?

A recent REIA survey of landlords found that 32.4 per cent would allow pets, while 39.3 per cent would not, and another 28.4 per cent were undecided.

That’s a lot of rental properties that won’t allow pets.

Why do pet owners make great tenants?

• Longer leases mean landlords can reduce advertising and vacancy costs
• It’s uncommon for pets to damage a property
• Research has shown responsible pet owners can make excellent tenants who abide by housing rules.

Neck says this is because pet owners know it can be difficult to find pet-friendly housing and they want to avoid house hunting.

“A tenant with a pet is, by definition, a person who has to think about and care for another being on a daily basis. This will translate into an appreciation of their surrounding neighbours and their landlord,” says Neck.

How much should landlords charge when they are pro pet?

When setting a rental figure it is important to remain competitive. You can do this by consulting your property manager, researching local demand and comparing market rates. “Allowing pets may enable landlords to charge a higher price, especially for extra features such as dog and cat doors and secure fencing. But the greater benefit of allowing pets may instead lie in the retention of good tenants,” says Lynch.

Should you restrict the type and number of pets?

Not sure about a Shetland pony in the backyard? Perhaps a boa constrictor will make house inspections a nerve-racking experience.

Lynch says that while the REIA encourages landlords to be open-minded about pets, they must always be mindful of local council regulations governing how many and what types of pets a single household can house. This also applies to body corporate regulations governing strata titles.

“While it is common to assume that pets refers to cats and dogs, pet ownership also includes rabbits, rats, chickens and birds. Some councils have concerns that certain animals such as chickens, will attract vermin, and so have rules preventing their ownership,” says Lynch. “Other common concerns regarding pets, includes noise issues, such as barking or cats killing the local native wildlife.”

Are there updates you should make to a pet-friendly rental?

Aside from including spill-proof, easy-to-clean floors and well-maintained, secure fencing, Neck says no other particular adjustments are needed. Though he recommends you and the tenant sign a Pet Keeping Agreement, which can be found on the ACAC website.

“The tenant agrees to maintain a high standard of cleanliness and sanitation, and monitors noise or disturbance to other neighbours,” says Neck.

Pets should always be formally noted on the lease. “If the pet requires any additions to the house such as a cat run or an outside area for a kennel, then this should be negotiated beforehand. Both the tenant and the landlord should have clear expectations around the pet and it is reasonable for a landlord to restrict the type, size and number of the pets, such as only small dogs or only one cat,” says Lynch.

“It is also advisable for the landlord to ensure that regular property inspections are carried out and that any damage to the property caused by the pet is covered by a landlord insurance policy.”