Landlords – consider the pet-friendly route to a 10-15% rent premium!
If you have an investment property then you have an interest in the real estate market. If you have an interest in the real estate market then you’ll be fully aware of changes in recent months. The long-running seller’s market suddenly switched to a buyer’s market with prices sliding steadily over a few months.
A buyer’s market in sales translates to a tenant’s market in rentals. The pool of potential tenants decreases as more people opt to take advantage of falling prices and buy their own home. Add to this the enormous number of new apartments going up everywhere you look and supply is beginning to outstrip demand by some margin. Tenants have more to choose from and they’re becoming more selective and demanding.
Landlords looking to increase, or at least maintain, their existing annual rental yield, might as well bark at the moon. All current indications suggest such hopes may be unrealistic and unachievable in some locations. However, smart landlords don’t have to simply roll over and have their tummies tickled by market forces. There is one number holding steady in all of this – 56% of Australians own a pet.
Pet owners, in general, are known to be prepared to pay a premium of 10% – 15% to secure pet-friendly rental accommodation. Not only that, pet owners tend to stay longer in properties where they’re welcome – it’s harder for them to find alternatives. Most of them come with excellent pet references from previous landlords. In our experience they tend to take greater care of properties too.
If someone offered you 10% – 15% more rent, is likely to rent for longer and take better care of your investment, you’d bite their hand off, wouldn’t you? That’s the sort of tenant not to be sniffed at.
Pets come in all shapes and sizes – they’re not all Great Danes or Rottweilers. Cats, lap-dogs, birds, rabbits and the like can be readily accommodated in many properties without any problems. That’s where your professional property manager can help guide you in becoming a pet-friendly landlord.
At Stills Properties we’re pet lovers ourselves. We understand what makes a good pet-friendly environment for different kinds of animals. Part of our vetting process is to make sure the proposed pet is suitable for your property, and that your property is suitable for the animal. Our regular inspections ensure that any problems are noted and resolved early and quickly – as with any investment property.
Handled properly, making your rental property pet-friendly for tenants can help you ride through any market downturn and still increase your return on investment significantly.
Contact Brigitte Stills at Stills Properties on 0419 426 038 to learn more about how embracing pets can bring you premium rental returns.