Next in our “The Role of the Tenant in Real Estate Investing” series…

The real estate investor in search of tenants often assumes that “no pets allowed” is a standard they should follow.  After all, pets are just a messy disaster in a rental property, right?

The answer, surprisingly, is a resounding…  WRONG!

In fact, if you really want to attract a fabulous tenant, a dog may be the investor’s best friend!

Pet owners in the United States spend in excess of $6 *billion* per year on their pets.  Of course there are rotten pet owners out there, but the reality is that many pet owners – especially those that are willing and able to pay a sizeable security deposit – are some of the most responsible people out there.  With the recent foreclosure crisis, many families have recently lost their homes.  These families now need to rent a nice home, ideally as much of a home as the one they had, and they probably have pets.  They’ve had the pets for years, in their own home.  It’s a safe bet those good people and their pets will be just fine in your investment property.

Until recently, it was rare to find any nice rental property that allowed the tenants to have pets.  That paradigm is starting to change, however the number is still less than 1%.  Allowing pets will instantly provide a significant advantage when renting your property.  Being pet friendly will reduce vacancy rates, provide a larger pool of responsible tenants, and – statistics actually show – result in less damage to the property.  MSN.com reports that the average monetary damage from tenants without pets is $362.  For tenants with pets, the average damage is $323.  That’s about 11% less damage from pet owner tenants.

There are plenty of steps the investor can take to protect themselves, including asking for pet deposits in addition to security deposits and putting language in the lease that holds the tenant responsible for any damage caused by the pets.  In addition, require the tenant to provide proof of liability insurance, naming the property owner as an additional insured on the policy.  Periodic property inspections will help ensure that any problems are detected before things get out hand.

In the end, when it comes to renting your investment property, it may be safe to say that pets do make good neighbors!

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NOTE:  We pride ourselves on bringing you the most informative, up-to-date, and accurate information possible about the often-confusing world of real estate investing.  Nothing we post however is intended to be taken as legal advice.  You should always contact a licensed legal professional for information and advice about your own unique investment scenarios.

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