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Pet Policies by the Numbers
Renting out a home is stressful enough as it is. Add in the dozens (if not hundreds) of decisions you have to make and it can become a logistical and mental strain on you. Especially if your rental isn’t your main focus.
0One of the more important factors that is often overlooked is a rentals pet policy. Most landlords default to not allowing pets, with concerns with floor damage, urine or pet smells, and allergies. While these concerns are totally understandable, you may be missing out a nice chunk of change in doing so.
By The Numbers
Looking at the Atlanta market, we begin to see a huge disparity between homes accepting pets or not allowing them. 77% of homes either do not allow pets or have pet restrictions (like no dogs, cats OK, or small dogs only). When 60% of rental prospects have a pet, there is a huge market of renters looking for pet-friendly homes.
Another important metric is rental rates. Homes that do allow pets typically rent at a higher rate. Here in Atlanta, homes that allow pets typically rent for around 12% more than homes that do not allow pets. Even better, they typically rent out 33% faster than homes that don’t allow pets (saving around 8 days of vacancy). One thing to note is that these rental rates do NOT include pet fees or pet rent in their calculations.
Do The Math
Let’s do a quick comparison on a $2,000 rental and look at the numbers:
For a no pets property you can make a maximum of $24,000/year on your rental. If we subtract the average DOM for a no pets property (32 days, or $2,104.11) would can make around $21,895.89. No other income streams for the home. It’s pretty straightforward.
Now let’s run these numbers but also allow pets. For a $2,000 home, you can add around 12% to the value (since pet-friendly homes typically rent for 12% more), this gives you a new monthly rate of $2,240, making your yearly income $26,880. Let’s subtract the average DOM for a pet-friendly home (24 days or $1,767.45), gives us $25,112.55. Even better, we can charge a monthly pet rent per pet (usually around $25/month). Added that to our numbers brings us to $25,412.55/year.
In general, you can expect to make about $3,516.66 more just for allowing pets. Or about 16% more per year.
In Conclusion
Ultimately, the decision to allow pets in your rental home is entirely up to you! In my opinion, the accessibility of a security deposit, proper vetting of applicants (and their pets) and adherence to a pet policy help mitigate the risk for any pet. Plus the added $3,500 a year is a nice added bonus that far outweighs the possibility of damage that can happen with a pet.