Key Points:
70% of tenants own pets
Your property will experience more turnover if you don’t allow pets
Your property will stay vacant for longer if you don’t allow pets
A question we often hear from landlords and real estate investors is “should I allow pets in my rental property?”. We understand that having an animal in your home comes with the potential liability of scratching your beautiful wood floors or other types of pet damage. However, even given the risks that come with allowing pets, we do still recommend that landlords allow pets in their rental property for these three reasons:
A recent National Association of Realtors (NAR) report stated that there are currently more households with pets, than with children.
Year: 1988 - 56% of tenants own a pet
Year 2022 - 70% of tenants own a pet
3 Reasons why you should allow pets:
If you do not allow pets, you are reducing your potential renter pool by 70% - that is an incredibly high number and should not be overlooked.
If you do not allow pets, it will take longer to rent your property. Your property will sit vacant on the market for longer which will both increase your holding cost, and reduce your income. The average time it takes to rent out a property in the Denver area is currently approximately three weeks.
If you do not allow pets, you will have a more frequent turnover. Tenants who have pets tend to stay longer in the property. This is because it's harder to find housing when you have a pet.
What about pet damage?
In Colorado, you are allowed to set pet restrictions for your tenants. This can be measured by weight, breed, number of pets, etc. However, keep in mind that Emotional Support Animals (ESAs) and service animals are covered by HUD, and pet policies do NOT apply to these animals. We will have an upcoming post on how a landlord should respond to service animal requests.
Can I charge more for pets?
This is a frequently asked landlord question; ‘can I get a higher security deposit if I allow a pet?’, or ‘can I charge additional rent to offset the damage that may occur by allowing the pet? Although we do not recommend charging ‘pet rent’, in Colorado (as of March 2023) landlords may currently increase tenant fees for pets.
WARNING: There is a pending law in Colorado - HB 23-1068 titled: “Concerning pet ownership in housing”
Should it pass, this law would restrict a landlord's ability to charge more for pet ownership on the property. We will inform our owner-clients of any changes in the laws regarding pet ownership.
Pet Damage Guarantee for Grace Management Owner-Clients:
As a benefit to our owner-clients, Grace Property Management offers a risk mitigation program. If we place a tenant with a pet on your property, and the pet has caused damage, we will pay up to $1,000 for damage repairs. *This risk mitigation offering also covers legal fees in the case of eviction. You can find more about our risk mitigation program at the link below.
https://www.rentgrace.com/eviction-pet-protection
If you are a long-term landlord and having trouble renting your property, you may want to consider allowing pets. You will have more tenants interested in renting your property, your property will rent fast, and you will have less turnover.
Grace Property Management & Real Estate
Property Management is not just our business - it is a relationship between us, our owner-clients, and our tenant-residents. If these are important to you, we may be a good fit to provide you, your property, and your tenant-resident with our award-winning property management service.
Serving real estate investors & residents since 1978
303-255-1990
