Would you accept your tenant with a pet? Let’s be honest… Australians and Melbourne love animals and pets. Who doesn’t love being greeted by their puppy dog after a hard day at work? Who doesn’t love hugging their bunny rabbit or patting their cat while relaxing on the couch?
The decision to allow pets into your investment property is important – and when you start thinking about dog hair, possible claw marks and other potential damage, it’s obviously very good reason to worry. In fact many investors have an issue with a pet living in their investment property.
Investors who choose not to accept a tenant with a pet are disadvantaging themselves. There are so many great tenants that love their pets. You’re eliminating a huge number of households from your rental pool – 60%, according to the Australian Companion Animal Council. And yet, a survey by the Real Estate Institute of Australia showed that 40% of investors don’t allow pets, and 28% weren’t sure if they would or not.
Believe it or not… There are lots of great benefits of accepting a tenant with a pet. Lets us share some interesting points:-
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Higher rental returns – Many tenants who own a pet are very willing to pay a higher rent. This can often result into an above average rental return.
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Longer rental agreement terms – According to the Real Estate Institute of Australia (REIA), tenants with pets tend to stay in the same place longer, to avoid disruption to their animals. Having a tenant remain long term will reduce your leasing and advertisement fees. It will avoid any potential vacancy. Employing a good Property Manager will understand the risks of a tenant owning a pet and can ensure they conduct regular inspections for your peace of mind.
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More tenants available to you – As mentioned earlier, having the acceptance of a tenant owning a pet increases your opportunity to source more tenants faster. Have a vacant investment property will certainly cause cash flow problems for you. If it doesn’t… lucky you!
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Home security – Having a pet within your home will actually protect your tenant and home better. Allowing a dog can deter burglars and vandals. In reference to the Residential Tenancy Authority the onus falls on the tenants to clean up and repair any damage made by their pets. An investor should include these conditions in the lease agreement., Having it in writing will ensure transparency in the event this occurs.
If you decide to allow pets, feel free to connect with the tenant. meet their pet. Communicate with your Property Manager and you’ll be surprised that a tenant with a pet may be the best tenant on the market!
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Apr 2018
