Allowing Pets: Landlords Who Allow Pets Are Likely to See 20-30% More in Rent Than Those Who Do Not
Chicago, IL – Chicago landlords and investment property owners may be overlooking a way to increase their profitability by not adding pet-friendly units to their investment portfolios: allowing pets. A nationwide study conducted by FIREPAW, a non-profit organization dedicated to handling animal welfare services, found that property managers who allow animals in their rental properties are seeing an increase in their bottom line profits. Their research found that the biggest reason pet owners gave up their pets was housing issues where pets are not allowed. Even though pet owners are willing to pay more in rent to keep their animals, there is still a shortage of landlords willing to accept pets.
“Because of their ability to charge a separate pet deposit that can range anywhere from 40-85% of the rent up front, property owners who allow pets in their properties are seeing their bottom lines increase substantially,” said Lukas Krause, Chief Executive Officer of Property Management Business Solutions, the franchisor of Real Property Management. “Real Property Management encourages Chicago property managers to allow pets whenever possible as a means to assist them in achieving financial goals faster.”
The FIREPAW study also revealed that, on average, rental housing that allows pets will rent for a 20-30% higher rate than rental housing that does not allow pets. Other benefits for landlords that allow pets include:
- Longer lengths of tenancy – tenants who have pets prefer to stay in one place for a longer amount of time
- Lower vacancy rates
- Less marketing needed per unit
- More applications received per unit – fewer restrictions on tenants with pets leads to increased interest in your rental
Most Chicago investment property owners have concerns about potential damage to the property by allowing pets, the noise factor bothering other tenants who may not have a pet, and worries about insurance issues. While it is true that allowing pets does come with a few increased insurance costs, the relatively small costs are offset by the premium rent received by pet friendly housing. Some damage is reported by landlords who allow pets in their units, but the cost of the damage averaged $430 – usually far less than the deposit paid. Landlords can subtract these damages from that deposit and not be out any money. In fact, the data collected from this study shows the amounts of damage from tenants with pets is not much higher than that caused by tenants without pets.
FIREPAW works with landlords and property managers to help them maximize their profits while minimizing damages associated with pet friendly housing. The non-profit organization created a Companion Animal Renters Program (CARP) that offers economic assessment, needs assessment, tailor-made programs, customized pet policy, pet agreements, and a custom made pet perk package.
Real Property Management Chicago Group is the nation’s leading property management firm. With nearly 30 years in the Chicago property management industry. The company’s goal is to provide unrivaled customer service that save property owners time, money, and the headache often associated with Chicago property management. For more information on our services, visit our website.