Study shows Middle Tennessee property owners who allow pets increase their profit
Murfreesboro – Real Property Management Rental Solutions warns that not allowing animals in your rental property may be a costly mistake. According to research by the nonprofit firm Firepaw, Nashville area property owners who allow pets in their rental properties see 20-30% more income than those who do not.
According to the American Veterinary Association, one out of every two renters have pets, and 35% of those without pets stated they would have them if they were allowed in their current housing situations. With this large number of renters having pets, and being willing to pay extra rent and deposit money to keep them, it raises the question: are landlords overlooking a potential profit increase by denying pet-friendly rentals?
“Because of their ability to charge a separate pet deposit which can range anywhere from 40-85% of the rent, and charge a larger deposit up front, property owners who allow pets in their properties are seeing their bottom lines increase substantially,” said Lukas Krause, CEO of Property Management Business Solutions. “We encourage property owners to allow pets whenever possible as a means to assist them in achieving financial goals faster.”
Though there may be concerns about allowing pets in your rental home, the benefits include:
- 20-30% higher rent rates to cover increase insurance costs, damage to the property, and pet premiums
- Long term tenants due to shortage of pet-friendly homes
- Lower vacancy rates
- Larger application pool when property is available
- Less marketing efforts needed to find a qualified tenant
The biggest concerns expressed about allowing pets in rental property are:
- Noise that bothers other tenants without pets
- Damage to property caused by pets
These concerns are easily solved when you consider that by allowing pets in the property, you are able to charge a larger upfront deposit. You can also charge higher monthly rent rates, which help to offset the costs of any damage that may occur. According to the research by Firepaw, damage caused by animals is only slightly more than damage caused by humans.
Real Property Management is the nation’s leading property management firm. With nearly 30 years in the property management industry, there are few problems related to property management that they have not handled before. Real Property Management Rental Solutions is the locally owned and operated office located in Murfreesboro, TN. Their goal is to provide unrivaled customer service that saves property managers time, money, and the headache often associated with property management. For more information on their services, visit www.rpmrentalsolutions.com or call 615-900-4067.