Did you know that the Centennial State ranks in the top five most pet-friendly states in the US, according to BringFido.com? It should come as no surprise, then, that a Denver pet-friendly rental is a hot commodity for prospective renters - but how do landlords benefit from four-legged tenants? Whether you choose to allow cats, allow dogs, or allow all types of common household pets, offering a pet-friendly rental rakes in benefits that will have you rolling over. In this article, we’ll explain why Denver rental property owners win when they allow dogs and other pets.
Get More Applicants and Higher Rent for Your Denver Rental Property
Americans love their animals, as highlighted by data from American Pet Products (APPA) National Pet Owners Survey of 2023-2024. According to their report, 66% of US households own at least one pet. But what does that mean for you and your Denver rental property?
Simply put, offering a pet-friendly rental boosts the appeal of your rental property - and savvy Denver landlords are catching on. The blog Hire a Helper recently reported that 86.3% of Colorado’s rental listings are pet-friendly. 85.4% of Colorado rental listings allow dogs, and 79.3% allow cats, according to the report. To stay competitive, all Denver rental property owners should consider updating their pet policies.
After all, it’s clear that droves of renters are seeking out a pet-friendly rental. Per a study from Bark and Zillow, “twice as many renters filter for pet-friendly listings than for any other amenity in the 25 largest rental markets across the US. That means renters are first filtering for ‘pets allowed’ apartments ahead of what some people may see as necessities, such as a washer and dryer, parking, or a dishwasher.”
If you’re still on the fence about offering a pet-friendly rental in Denver, this data explains that you can enjoy an expanded tenant pool, which also means a shortened vacancy rate. Additionally, an analysis of the Journal of Real Estate Finance and Economics found that landlords without restrictions on pet ownership saw an 11.6% rental premium over landlords who did not allow pets (after controlling for waterfront rentals, vacancies, age, number of bedrooms, and other factors), per BestFriends.org.
But more potential tenants, shortened vacancy rates, and increased rent aren’t the only wins for Denver landlords considering becoming a pet-friendly rental property provider. Let’s discuss how rental property owners who allow dogs keep tenants longer.
Pet-Friendly Rentals Increase Chances of Resigning Tenants
Pet owners aren’t just looking for any Denver rental property that allow cats or dogs; most are looking for somewhere to live long term, and that often translates to a significantly longer tenancy than renters without pets.
A new report from Michelson Found Animals’ Pet Inclusive Housing Initiative supports this theory. Their findings show “that pet-inclusive policies drive resident retention, with tenants staying up to 21% longer - reducing costly turnover and vacancy losses.”
In short, keeping your residents (and their four-legged friends) happy and comfortable in your rental property increases your chances of resigning a quality tenant year after year. And that’s great news because Denver landlords are allowed to charge pet-related fees that can boost your bottom line.
Charge Additional Pet-Related Fees
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Beyond the increased tenant satisfaction and loyalty that comes when you offer a pet-friendly rental, landlords stand to benefit from additional pet-related fees. Specifically, Denver landlords can charge a combination of pet fees, pet rent, and a pet deposit. Before we dive into how much you can charge to allow dogs and other pets, let’s discuss House Bill 23-1068.
Effective January 1, 2024, HB 23-1068 set rules regarding pet ownership in housing, including how much rental property owners can charge pet-owning renters. The law states that “the amount of an additional security deposit a landlord can receive from a prospective or current tenant as a condition of permitting the tenant's pet animal to reside at the residential premises [must be limited] to a refundable $300. Additionally, a landlord is prohibited from demanding or receiving additional rent from a tenant as a condition of permitting the tenant's pet animal to reside at the residential premises in an amount that exceeds $35 per month or 1.5% per month of the tenant's monthly rent, whichever is greater.”
In other words, Denver landlords with a pet-friendly rental can charge a $300 refundable pet deposit along with monthly pet rent in the amount of $35 or 1.5% of the tenant’s monthly rent.
Most pet owners are responsible and won’t let their animals inflict undue damage, which means that you can pocket the profit from the pet rent itself. And if there is pet damage upon move out, you can use the pet deposit to restore your property as needed.
Conclusion
Denver rental property owners have much to gain if they allow dogs, cats, and other pets, from more applicants to higher profits.
By working with a professional property manager, you’ll enjoy all of the benefits of offering a pet-friendly rental unit without the fear and headache of pet-related damage. A professional property manager, like Evernest, will make sure that all of the language needed to protect your rental property from pet-related damage is included in your lease agreement from the outset. We handle everything from collecting the pet deposit to conducting regular inspections. We’ll also make sure that any pet-related issues are resolved before re-renting your property.
