Enhancing Rental Returns through Pet-Friendly Policies
For those willing and able to introduce a ‘pet considered’ policy, a higher rent return is just one of the many benefits, as properties that are advertised as pet-friendly not only lease faster, reducing void periods but tenants are found to stay for longer.
The average asking rents for pet-friendly homes are higher than for homes that don’t allow pets. However, with only 11% of rental homes actively allowing pets, many landlord investors are missing out on some significant financial benefits.
Current estimates suggest that 62% of UK households have pets. Meaning there is an overwhelming demand for properties that allow a furry friend, and many tenants are prepared to pay a premium to secure it. Typically, they’re willing to offer between 8% and 12% more rent for a pet-friendly property. This equates to £866 and £1299 in additional annual rental revenue for the average Loughborough property. For those willing and able to introduce a ‘pet considered’ policy, a higher rent return is just one of the many benefits, as properties that are advertised as pet-friendly not only lease faster, reducing void periods but tenants are found to stay for longer.
However, there’s more to consider than just rental returns. Property damage is the main reason landlords refuse pets, and since the Tenant Fees Act 2019 came into force, Landlords can’t simply ask for a higher ‘pet deposit’, leaving them at greater risk. However, there are measures you can take if you decide to rent your property to a pet owner. One such way is with a well-written pet clause, allowing landlords to clearly detail their expectations about how a pet will be kept and managed once approved. Another way is asking for a pet resume, which allows the owner to present specific information relating to the pet and the way the pet is cared for. These processes can help a landlord to make an informed and accurate decision when assessing pet ownership on a case-by-case basis.
So, if you’re an investor looking for an easy way to enhance your rental return, allowing pets can be an effective strategy.
Note: While deciding whether to allow a pet in a rental property is ultimately a decision for the landlord, the other tenants should also have their say when it comes to Houses in Multiple Occupation (HMOs). Also, most apartment head leases we have reviewed prohibit the keeping of pets.