Research confirms the profitability of animal-friendly housing

Furred and feathered tenants not only earn their keep but generate profits for landlords, according to a recent study published in the journal Anthrozoös.

By examining rental housing trends and surveying tenants and landlords in 10 cities across the United States, a group of researchers has provided statistical evidence for the economic viability of welcoming pet-owning tenants.

In their study, “Companion animal renters and pet-friendly housing in the US,” Pamela Carlisle-Frank, Joshua Frank, and Lindsey Nielsen of FIREPAW (Foundation for Interdisciplinary Research and Education Promoting Animal Welfare) found that, while about half of the surveyed rental properties were animalfriendly, only 9 percent allowed animals “without any significant limitations on size or type.” Virtually all surveyed tenants who owned more than one dog said they’d had trouble finding housing.

Collection of pet deposits and other fees associated with pet-keeping in rental units can be a boon to landlords, but extra cash is just one benefit of allowing the four-pawed contingent onto rental properties, the researchers concluded. As it turns out, tenants in animal-friendly properties stay significantly longer—by an average of 23 months—than those in properties that do not allow pets. (Not surprisingly, this extended stay does not apply to people who illegally keep pets.)

“The increased tenancy duration for people who keep pets legally may be out of loyalty or a desire not to have to search again for pet-friendly housing,” wrote the researchers.

Vacancy rates for animal-friendly housing are also significantly lower, as is the amount of time and money landlords have to spend on marketing animal-friendly units.

Landlord concerns

Of the 40 percent of landlords in the study who prohibit pets, 63 percent report they’ve never permitted animals on their properties and thus have never actually experienced pet-related problems. Yet two-thirds were concerned about potential damage, more than half worried about noise, and about 40 percent feared tenant complaints and insurance problems. Only about 6 percent of the landlords who don’t allow pets cited cleaning or pet abandonment as a major concern.

Though the researchers’ analysis showed that 85 percent of landlords who permit pets have experienced some amount of pet-related damage, the average cost of that damage is less than the average pet deposit or the average fee for one month’s rent. More importantly, wrote the researchers, no significant difference was found between damage caused by pet-owning tenants and damage caused by tenants without pets.

Landlords of animal-friendly housing reported an average increase in annual insurance premiums of $150, but, as the researchers point out, that’s less than the premium received in rent from pet-owning tenants each month.

An untapped market

Though landlords who prohibited pets in the study estimated that, on average, 7 percent of tenants kept them illegally anyway, the researchers’ estimate is significantly higher: More than 20 percent of tenants surveyed said they were breaking the rules to keep pets in their homes.

Nearly half of American households already have companion animals, and more than half the non-pet-owning renters in this study said they would probably have at least one animal if allowed by their landlords. Exaggerated concerns from people who’ve never operated animal-friendly properties appear to be the only thing standing in the way of increased financial gain for landlords and increased housing opportunities for pet owners, the researchers believe.

“With the majority of pet-friendly rentals charging separate pet deposits, larger (on average) regular deposits, and higher (on average) monthly rents,” the researchers wrote, “two issues are of note: 1) on average, tenants with companion animals are willing and able to pay more for the ability to live with their pets, and 2) rental property owners who offer pet-friendly housing not only have the potential to more than cover any potential risks, they can actually increase their bottom-line profits.”

And they can also increase their popularity with the helpful pet set, perhaps the most effective Neighborhood Watchers (and sniffers) any landlord could hope to find.