There’s no doubt that here in Australia, many of us have a furry friend or two.

However, as landlords, we often cringe at the thought of tenants having a pet, given we are so concerned about safeguarding the property against potential damage.

 Over 60 per cent of Australian households own a pet, yet it seems almost automatic for the majority of Australian landlords to have a ‘no pets’ policy on rental tenancies.”

Perhaps it’s because they think it’s easier to manage a property without pets, or they believe pets might cause damage, but I’ve always been a pet friendly landlord and it opens up my group of prospective tenants

With that in mind, allowing tenants with pets to rent your property may have its benefits, including higher rental yields, longer tenancies, and potentially happier and more responsible tenants. We’ve offered a few insights into how allowing tenants to keep pets can actually be a positive experience for everyone involved, along with some tips to ensure that everything goes smoothly along the way.

Why allowing pet-owners to rent a property can be a good idea

The list of potential negatives is fairly obvious to most landlords, and generally revolve around concerns about mess and damage caused by teeth and claws, and the costly repairs associated with any damage to the property. However, there can be a number of benefits that studies and anecdotal evidence from many property owners claim to be true, including:

Higher rental yields – Tenants with pets know all too well how hard it can be to find a place that will accept them and their companion.

Australian research reveals that many dog and cat owners would be prepared to pay more for a pet-friendly rental; in fact, landlords may be able to receive from seven to 14% more rent.

The payment of a ‘pet deposit’ or ‘pet bond’ is very common in some parts of the world, but not permitted in most states of Australia.

Western Australia is the only state where a pet bond is permitted – an additional amount of up to $260 may be charged subject to conditions.

Rent your property quicker – For similar reasons as above, pet-friendly properties tend to rent quicker, as pet-owning tenants are more likely to accept a lease quickly and move in as soon as they find somewhere suitable.

Responsible Pet Owners can Make Excellent Tenants - Research shows that a responsible pet owner can make an excellent long term tenant that abides by the housing rules.

They know it can be difficult to find pet-friendly housing and want to avoid having to search again for it.

Think about it – you may own a pet, or you may have friends or family that do.
If so, you’re probably aware of the close and caring bond people share with their pets.
You may also have noticed that many pet owners are very house proud and keep their homes and gardens beautifully.

These same people could be renters, and could make perfect tenants.

Sign tenants on for longer leases – Tenants with pets are likely to stay longer than non-pet owning tenants.

They know that it can be hard to find pet-friendly accommodation, so once they secure a suitable property they are generally inclined to sign a longer lease and/or renew their lease.

In a recent interview with Domain.com.au, Amanda Lynch, Chief Executive of the Real Estate Institute of Australia (REIA), pointed out that “renters with pets frequently sign longer leases and are less likely to move as it can be disruptive to the animal.”

Reduce your Advertising Spend - With pet-friendly properties leasing more quickly and pet owning tenants staying longer, it stands to reason that you will spend less on advertising to find tenants for your rental property.

NO More Problems with ‘HIDDEN’ PETS - With the vast majority of rental properties prohibiting keeping a dog it’s not surprising to find that many pet owners simply don’t reveal their pet owning status on their application.

Australian research indicates that for 11% of pet- owning tenants (mainly cat owners) their landlords or body corporate are unaware that they keep pets 2 .

Illegal pet possession can be stressful and is not something renters want to do.

However, given that 91% of Australians feel very close to their pet, some people will take the risk.

Reduce Animal Euthanasia - Animal welfare agencies indicate that as many as 30% of dogs and cats are surrendered by owners who are unable to locate adequate accommodation.

The ratio of pet-friendly rental properties is at odds with the number of people looking for rentals. Sadly, this has resulted in a high number of animal surrenders.
Data from Australian animal welfare organisations suggests that up to 30% of animals surrendered to shelters are the direct result of owners being unable to secure pet-friendly accommodation.
Better animal welfare results, along with better outcomes for tenants and landlords, could be achieved by a pet-friendly approach to rental tenancies.

Tips to ensure things run smoothly for you and your tenants

Despite the potential benefits of allowing your property to be tenanted by pet-owners, there are of course a few things to keep in mind to ensure things run smoothly.

Screen your tenants thoroughly - As with any tenant, it’s important to thoroughly check their rental history and background, and ensure that you can trust the owner first, let alone the pet!

Consider making small renovations to your property - Easy-to-clean floors and secure fencing will go a long way in keeping your home (and your neighbours’) as clean and damage-free as possible when there are animals living inside it.

If you’re already renovating your place in order to make it tenant-friendly, this is a perfect time to consider whether to make renovations that will make your place more pet-friendly.

Formally note down the presence of pets in the lease - Keep a paper trail (or digital trail if using RealRenta) of all things related to the tenant’s pet/s, including agreements on how many animals, the type, and any alterations made to the house. This ensures you have plenty of evidence and documentation in the event that anything does go wrong.

Don’t discriminate against those with service animals

Keep in mind that a service animal is not a pet. There are laws that exist to protect individuals who use service animals, like guide dogs, from being discriminated against when looking for a rental property.

To ensure you don’t exclude anyone who needs the assistance of a service animal, see more on the government’s policies and laws in the area of discrimination when renting.

Ensure your landlord’s insurance covers damage by pets

Despite the best intentions and planning, accidents do happen, making it paramount to ensure you or your client are covered in the event that damage occurs to the property.

Check your insurance policy thoroughly, and ensure there are no loopholes that may allow the insurance company to avoid claims for any damage caused by little critters.

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