The whys and hows of allowing your tenants to have pets
Pets seem to be the final frontier for investment properties: that one last barrier that landlords often don’t want to cross. But are these furry fiends really as bad as you think? Could they be the answer to your rental property woes?
Pets aren’t always disruptive tenants.
Why should you allow pets?
Other than the obvious benefits that come with having a happier tenant, you might find that allowing a pet could do well for your finances too. First of all, there’s the fact that a lot of people looking to rent a house do have animals and might be willing to pay more for a place that can accommodate of their furry friends. If you take into account that Roy Morgan recently found that cat owners tend to earn more than their non-cat-owning counterparts, this is particularly important for people who are renting out premium properties with higher-than-average rental rates.
However, everyone has a good reason to allow pets: the current vacancy rates. The Real Estate Institute of Victoria tells us that vacancy rates have climbed to 3.1 per cent in metropolitan Melbourne over February 2016 and you might be finding it hard to get tenants as a result. Allowing pets opens up your prospective tenant pool a great deal more, so you may want to consider it if you have found it tough filling your investment property.
How can you allow pets safely?
Have a proper conversation with any prospective tenant about their pet and their responsibilities.
Pet-owning tenants could be the key to making the most of your investment property, but it won’t mean much if you then have to put that money back into the property due to pet-related damage.
Some states allow for “pet bonds” – a specific deposit given by the tenant in order to pay for any damage or maintenance that may be required as a result of them keeping an animal. The Residential Tenancies Act, the primary governing legislation regarding rental properties, does not make any specific mention of the legality of pet bonds. This is a grey area, so it may be better to simply steer away from this option.
However, Consumer Affairs Victoria does describe how a tenant can be served a breach of duty notice if the pet does cause undue damage to the property, so you are still covered. Still, it’s better not to have to resort this, and instead have a proper conversation with any prospective tenant about their pet and their responsibilities – communication is key to any relationship, including between a tenant and their property manager.
Of course, if you want to really make the most of your investment portfolio, you can get in touch with the team here at Nelson Alexander. With offices all over northern Melbourne, we can give you advice on buying, selling or renting out real estate.
