Pet-friendly units see steady demand, but converting one requires setting clear rules. Here's the upside and what to watch for.
- Pet-friendly units are scarcer than pet-free ones, so applicants have fewer options — which makes it easier to capture that demand.
- When converting, you need clear rules on what species, sizes, and numbers of pets are allowed.
- It's important to spell out the scope of restoration to original condition (scratches, odor, etc.) in the lease and its special provisions (tokuyaku).
- Rules for common-area etiquette — leashing, elevator use, and so on — are also essential.
- Depending on your fire and casualty insurance, you'll want to check how pet-related damage is treated.
Demand and Background for Pet-Friendly Units
A lot of households keep pets, and there's a real pool of prospective tenants specifically looking for pet-friendly housing. At the same time, pet-friendly units are in shorter supply than pet-free ones, so applicants looking for a property that fits their needs actually have relatively few options. This demand for pet-friendly housing appears to be especially persistent among units aimed at single renters, more so than family-oriented properties.
The Benefits of Converting to Pet-Friendly
Converting to pet-friendly can be one way to fill vacancies by capturing that demand. In areas where few nearby properties are pet-friendly, it can also help differentiate your property from others. That said, you'll need to weigh it against the risk of wear from pet-keeping and the risk of disputes with neighbors. It's also worth noting that pet-owning households tend to have fewer moving options, which can mean longer average tenancies.
How to Set Pet-Keeping Rules
When converting, set basic rules — what species are allowed, size limits (no large dogs, for example), and a cap on the number of pets. These rules should be set realistically, based on the building's structure — soundproofing, the size of common areas, and so on. Leaving the rules vague tends to lead to disputes between tenants down the line. Setting specific numeric limits for headcount and weight helps prevent misunderstandings after move-in.
Setting Up Restoration Terms and Special Provisions
Pet-friendly units tend to see wear specific to pets — scratches, odor — on top of ordinary wear and tear. Setting up a special provision (tokuyaku) in the lease for pet-keeping, and clarifying up front how expected wear will be treated at move-out, helps prevent disputes. See the separate article for the basic thinking on how restoration costs are allocated. Some management companies also set the deposit with an eye toward the restoration costs expected at move-out.
Common-Area Etiquette and Preventing Disputes
It's also worth setting specific rules for common-area etiquette — leashing pets, being considerate of other tenants in the elevator, and handling barking — and making sure tenants know them. Rules that are mindful of coexistence with tenants who don't keep pets also contribute to long-term tenant satisfaction. Specific hygiene rules — cleaning up after pets in shared hallways and the entrance, for instance — also provide peace of mind.
What to Check Before Converting
Before converting to pet-friendly, it's worth checking how far your fire insurance and facility liability insurance cover pet-related damage. If you're converting only some units while others remain occupied, it's also worth weighing the impact on other tenants and whether you need to explain the change to them. Researching pet-friendly terms at nearby properties, to check whether your own terms are competitive, is also worthwhile.
Frequently Asked Questions
Does going pet-friendly guarantee an easier lease-up?
It tends to capture more demand, but rent level, location, the building's condition, and other factors also play a role, so it doesn't always produce an immediate effect.
Who bears the cost of pet-related wear at move-out?
It's judged based on the lease's special provisions and the thinking in the Restoration Guidelines. Wear beyond normal use is generally the tenant's responsibility.
Can only some units be made pet-friendly?
Yes, that's possible. That said, it's best to set the rules in consultation with your management company, taking into account common-area use and consideration for other tenants.
Summary
Converting to pet-friendly can be an effective way to capture demand and fill vacancies, but it requires groundwork — pet-keeping rules, restoration provisions, and common-area etiquette. It's important to move forward in consultation with your management company, based on your property's circumstances.