The housing market in Columbia, MD remains highly competitive, with low inventory and high demand driving up prices across the board. While this is good news for sellers, it does not automatically mean good news for landlords.
People typically come to Columbia to buy and set down roots, which means landlords must be strategic to make their listings competitive and generate high returns. In your quest to do exactly that, you may already have considered allowing pets in a rental property that you own.
While this is one of those rental tenant terms that can boost your rental property pricing, it also has its drawbacks. Let's take a closer look at the pros and cons of allowing pets in your Columbia, MD rental property.
Pro: Larger Tenant Pool
When it comes to marketing your rental property, a "pets allowed" policy can supercharge your listing. This will automatically expand the pool of potential tenants and allow your listing to reach a wider audience than it otherwise would have.
Naturally, this is good news for your potential returns, since you can also charge higher rental payments if there is greater demand. By allowing pets, you are choosing to include as many potential tenants as possible in your marketing.
Pro: Higher Retention
One of the most significant expenses for any landlord is tenant churn. Losing a tenant and finding a replacement is time-consuming and often expensive, especially if your property sits empty and accumulates bills and taxes for a long period.
By adding a pet-friendly policy, you can reduce this risk. People with pets know that finding pet-friendly accommodation is challenging, and may be more likely to stick around for longer in a place that accommodates their furry friend. Higher retention means lower vacancy rates and thus higher returns over the long run.
Con: Risk of Rental Property Damage
This is the most obvious downside of allowing pets. The perks of a larger rental property tenant pool do not necessarily outweigh the costs of having animals living on your property.
There will likely be damages that you will have to cover the cost for, such as smells, scuffed floors and doors, and soiled carpets. These are costs that your tenant's security deposit will not necessarily cover, and these can be substantial.
Con: Pets in a Rental Property Pose Liability Risks
Pets don't just affect their owner and the property they live in. They also affect the community they are part of. A noisy pet can irritate neighbors, as can a pet that causes a mess in shared outdoor spaces or a neighbor's yard.
There may also be specific rules in your local HOA that prevent or restrict the presence of pets in the community. All of this poses a liability risk to you, as the owner of the property. Always find out what your obligations are before allowing pets in your listings.
We Help You Set the Right Terms for Your Property
Allowing pets in a rental property has its pros and cons, and whether there is a net benefit for your portfolio largely depends on the property in question.
At PMI Real Asset MGMT, we can help you set a competitive policy for your property that generates the returns you deserve. Get in touch to find out exactly how we can help.
