Landlords’ Guide to Renting with Pets in Victoria

Australians love pets, but owners of rental properties may not always feel the same way.

Six out of ten Australians own some type of pet, and half of the remainder would like to own a pet in the future.

However, research conducted by the Australian Veterinary Association found that only 19% of rental properties were open to considering pets, and in some high volume areas like the Melbourne CBD, that number drops to 1%.

That’s clearly not enough to meet demand. It may seem easier for owners to tick the “No Pets Allowed” box on the rental agreement, but making some accommodations for pet owners is certainly advantageous in the long run.

Read on as the Love&Co team explain why.

Victoria’s Updated Pet Laws

On March 2nd, 2020, significant changes to the Residential Tenancies Act in Victoria rolled out new laws, granting tenants the right to own a pet when renting. By submitting a pet request form, current and prospective tenants of rental properties can request permission to have a pet reside with them, and landlords must not refuse without justified reasoning. In order to refuse the request, a landlord is required to issue a dispute to be heard and assessed by the tribunal.

Can I Charge Additional Rent For Tenants with Pets?

A property that allows pets immediately becomes more desirable – and tenants are willing to pay for it. Aussie.com.au recently reported a study that shows pet-friendly properties can earn up to 14% more than those who simply say no.

The Advantages of Allowing Pets in Your Property

Faster turnover.

When your property doesn’t have tenants, it’s costing you money. Showing that you’re open to considering pets increases the appeal of your place, attracting more potential tenants and allowing you a wider pool of people to choose from. That’s better in the long run, as the chance your property will stay empty for an extended period of time becomes more unlikely.

Broader range of tenant options.

There’s never a guarantee, but having a wider pool of applicants means you have more choice when it comes to selecting someone to live in your property. It also gives them extra incentive to keep the owners happy and less motivation to leave – people looking for rental properties with an animal in tow understand the value of a pet-friendly place. That means tenants who stay longer, reducing turnover.

Animal welfare.

A huge proportion of animals who are surrendered to shelters are from loving families who are moving to accommodation that doesn’t allow for animals – research says as many as one in three. More pet-friendly rentals means fewer animals that need to be re-homed, or worse.

Decide what works for you.

Many property owners feel that being pet-friendly means they have to accept any animal, but don’t worry – if the team of huskies won’t suit your CBD apartment, you don’t have to say yes. Specifying “Pets Considered” on the application means you can pick and choose to get the right fit for your property.

What steps should I take to promote my property as pet friendly?

There are a wide variety of options for landlords when it comes to allowing pets. Remember that there are many different kinds; big and small, inside and outside, energetic or house-bound. In fact, the temperament of a pet is a better indicator of how well it will suit your property than just size or breed. Some landlords ask for a “pet resume”, outlining the type and temperament of the pet, and even sometimes including references.

In any case, it’s a good idea to include a detailed pet agreement as an add-on to the usual lease. It could be designed for tenants moving in but is also useful for people who might ask to get a pet part-way through the lease. Tenants should agree to indemnify the landlord for any damage caused by their pet, and confirm that they are liable for any injury or loss that might occur. It should also specify the number and types of pet you are willing to allow, including species, breed and size.

If you are willing to consider having an animal in the house, there are some things that can promote your property as pet-proof. Consider your flooring – carpet can hold smells and stains, and soft wooden flooring could get scratched. Fencing is another consideration, but it doesn’t just apply to pets – good fencing can help you attract families with young children and privacy-conscious as well. For properties with balconies or stairs, consider if there are gaps that might be unsafe for smaller animals.

In addition to your pet agreement, insurance is a must. Some landlord policies don’t automatically cover pet damage, and others will provide cover up to a specific limit, so it’s important you specifically check your policy. Some owners also choose to ask for an extra portion of bond specifically designated to cover pet damage.

Understanding the risks

There is some risk involved in allowing pets, but the benefits could well outweigh any possible negatives. Let’s face it – there is an element of uncertainty in allowing anyone to live in your home for an extended time. As long as the homeowner has good insurance, the risk really isn’t much higher than usual – most claims for rental properties have to do with damage or default by the tenants themselves, not pet damage.

Allowing pets gives your tenants extra motivation to choose your rental property, meaning faster turnover, potentially higher rents and tenants who stay longer. It’s worth putting in a little bit of extra effort to make sure the pets are a good fit for your property, and making sure you are covered with renters insurance and possibly an extra portion of bond specifically designated for pet damage. With these considerations in place, allowing pets can be a smart investment move.

Offering a rental property that will consider pets helps ensure you get good tenants with extra motivation to choose your property. The team at Love & Co. can help you fill your property with the right tenants – along with their furry, scaly or feathery friends. Get in touch with us today!