Today, I was looking on Craigslist to find out what the going rate was for rentals in an area before either I, or an investor, purchase a property in that area for a possible lease option. Then, what do I see on rental after rental?
This is absolutely stupid if you want to get your rental property rented. You are eliminating half of your potential renters and usually the most profitable ones. Most people who own pets treat them like a family member and won't get rid of them, just because they need a place to live. But, they will pay more for the privilege to live somewhere that does allow pets.
If you own a rental property and want an extra source of income, put in your ad, "$250 non-refundable pet fee". Also require at least a one year lease and charge an additional $25 per pet per month in rent. This will more than cover any damage that a pet could possibly do to the home and gives you a minimum of $550 extra for the year with the deposit and extra rental income. That is if they only stay one year and only have one pet.
Make sure that you also put it in the rental agreement that if they don't disclose they have a pet or get another pet without first informing you, then all fees are retroactive to the date of move in. Then pay the neighbors to watch your rental property for you. If you tell the neighbor that if you see more than the agreed to amount of pets, and call me, and I can prove it, then I will reward you with a $100 bill.
I had one client who had this policy in place for years without incident and one day the neighbor called on the tenant who had lived there for 4 years. They had just bought 2 more dogs and didn't bother to tell the landlord. He waited on month to see if there was going to be a note with the rent check. He then sent them a letter stating that the lease agreement was in violation and he was being nice and was going to only have them pay retroactively to the first of the year. They told him to "_______!" (I wasn't going to type that.) He said, "Fine." and gave them a 30 day notice. Then he took them to court for the back rent owed on the 2 dogs for $25 per month for the total of 4 years they had lived there. A grand total of $2400 in back rent, instead of $200 like he was asking in the letter.
The judge asked them if they had signed the lease and because they had read the agreement and initialed it. Then he pointed out that they also understood the agreement since they already had one dog and had been paying $25 extra every month, plus the deposit. JUDGEMENT for the Landlord in the amount of $2400!
So don't say no to pets so quickly, they may make you more money from your rental than you think! But, do make them have liability insurance for their pets.
Respect Realty LLC (Expect More)
At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction. We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.
Reach out today, we look forward to talking with you!
Todd Clark and Seraina Aguayo (Owners of Respect Realty)
Respect Realty LLC (Expect More)
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