To more than 84 million families in the United States, pets are family. So much so that, for the majority of families, pets play a crucial role in their decisions about where they choose to live next.
One could look at these numbers and conclude that the pivot toward adopting pet-friendly rental agreements is a competitive necessity in today’s market. While that may be true, the growing demand for pet-friendly housing should also be viewed as a great opportunity for lessors and lessees alike.
Tenants who own pets tend to stay in their leases for more than twice a long as non-owners.
The beneficial effects of pets isn’t limited to their owners. A growing body of research suggests that people who own pets are more likely to be healthy, socially active, and connected to their respective communities. Pet-owning tenants report that their pets tend to be appreciated by their neighbors and help to create a sense of community within multi-unit complexes. Stronger relationships among neighbors lead to greater stability among all tenants, not just the ones with pets.
A common misconception is that tenants with pets tend to cause more damage and carry a higher liability than tenants without pets. Not only is that belief unfounded, it turns out to be outright false.
A nationwide study of pet-friendly rental units conducted by FIREPAW, Inc., found that pet-friendly rentals actually brought in more rental revenue than other rentals. While pet-owning tenants did cause property managers to incur additional costs due to pet-related issues, those costs were vastly outweighed by the revenues generated through pet-friendly units. Over the course of one year, a single pet-friendly rental cost managers an average of $218 in insurance premiums, damage repair, and labor. However, higher rents combined with lower spending on marketing and shorter vacancy periods brought in nearly $3,000 in additional revenue per unit per year.
In a survey of mayors, 81% responded that they believed pet-friendly amenities can increase property values.
Pets are a huge part of our lives. Over two-thirds of American households own a pet, and that number is rising!
With over 84 million pet-owning homes in the United States, there are still a surprising number of obstacles in many communities that make pet ownership more challenging than it needs to be.