As a landlord, deciding whether to allow pets in your rental property is a significant choice. With a rise in pet ownership, especially post-pandemic, it’s a decision that can impact both the attractiveness of your property and its management. This article will explore the advantages and disadvantages of permitting pets, with a focus on insurance implications, using insights from MyDeposits.
The Benefits of Allowing Pets
Increased Demand and Rental Stability One of the primary advantages of allowing pets is the increase in potential tenants. A considerable portion of the UK population owns pets, and finding pet-friendly accommodations can be challenging. By permitting pets, you expand your property’s appeal, potentially reducing vacancy periods. Moreover, pet owners often seek long-term rentals, offering greater rental stability.
Potential for Higher Rental Income Landlords can potentially charge higher rent for pet-friendly properties. According to MyDeposits, the demand for such properties can allow for a premium, sometimes termed as ‘pet rent’. This additional income can offset any extra costs incurred due to the pets.
Assessing Property Suitability for Pets
Considering the Space and Environment An essential factor in the decision to allow pets in your rental property is the suitability of the space for different types of animals. Not all properties are appropriate for all pets. For instance, a large breed dog might struggle in a small one-bedroom flat, especially if there is no garden or outdoor space. This mismatch can lead to increased stress for the pet and potential damage to the property. Conversely, a property with ample outdoor space and secure fencing could be ideal for larger pets or active breeds. It’s important to assess the specific attributes of your property and consider imposing restrictions on the types or sizes of pets allowed. This approach ensures that the pet’s welfare is considered and reduces the likelihood of issues related to unsuitable living conditions for the animal.
The Drawbacks of Permitting Pets
Risk of Property Damage One of the main concerns for landlords is the risk of damage to the property. Pets can cause wear and tear beyond normal usage, including scratches on doors, chewed fittings, or accidents on carpets. While this is a valid concern, it’s important to note that not all pets cause significant damage.
Insurance Implications Allowing pets can complicate your insurance situation. Some insurers might increase premiums or alter terms when pets are living in the property. It’s essential to check with your insurance provider and understand any changes to your policy or additional costs involved.
Potential for Nuisance Pets can sometimes be a source of nuisance, such as excessive noise, which can be a disturbance to neighbours. This issue needs to be managed carefully to maintain good relationships within the community.
Balancing the Risks: Deposits and Pet Clauses
Pet Deposits and ‘Pet Rent’ To mitigate the risks, landlords can consider pet deposits. While the Tenant Fees Act 2019 restricts the amount that can be charged as a deposit, MyDeposits suggests incorporating a ‘pet rent’ as an alternative. This additional rent can help cover potential damages without breaching the deposit cap.
Including a Pet Clause in the Tenancy Agreement A pet clause in the tenancy agreement can offer protection. This clause should clearly outline the tenant’s responsibilities regarding their pets, including dealing with any nuisance or damage.
Insurance Considerations
Informing Your Insurer It’s crucial to inform your insurer if you decide to allow pets. Failing to do so could invalidate your policy. Ensure that your insurance covers any pet-related incidents.
Specialist Insurance Policies Some insurance companies offer specialist landlord insurance policies that specifically cover pet damage. It’s worth exploring these options for greater peace of mind.
At Belvoir we recommend a very good tenant liability policy that includes pet damage.
Weighing the Decision
Deciding whether to allow pets in your rental property is not straightforward. While there are clear benefits, such as increased demand and potentially higher rental income, the risks of property damage and additional insurance complications cannot be ignored. Each property and landlord situation is unique, and this decision should align with your personal investment strategy and comfort level as well as the property’s suitability for pets.
Are you considering allowing pets in your rental property but unsure about the implications? Our team at Belvoir Tunbridge Wells is here to help. We can guide you through the legal and practical aspects of pet-friendly rentals, from insurance considerations to drafting robust tenancy agreements. Contact us today to discuss how we can assist you in making an informed decision.
