The decision to allow pets into your investment property is important – and when you start thinking about dog hair, possible claw marks and minor damage to your half-a-million-dollar investment, it’s tempting to say no, and this is what the majority of Australian investors do.
With floor stains, scratch marks and garden damage a potential outcome, why should you allow pets onto your property?
The math is pretty straightforward: if you exclude every potential tenant who owns a pet, 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.
Talk about finding a niche market of renters!
If all those renters with pets – and there are millions of them – are hunting for the rare property that will allow their furry friends to stay, doesn’t that make pet-friendly homes a little more sought-after? Yes it does, and in fact realestate.com.au says that renters are often willing to pay a little extra to cover their pets staying too.
How can you benefit from allowing pets?
If your concern is damage to the property, fear not: the Residential Tenancy Authority says that the onus falls on the tenants to clean up and repair any damage made by their pets, and that investors can include specific clauses relating to pets in the contract, such as:
If you decide to allow pets, there are several ways you can protect yourself:
As the property owner, you can be as flexible as you choose when it comes to pets.
Just remember that with so many pet owners out there, a property that welcomes animals has an enormous competitive advantage in the rental market.