7 Ways Effective Pet Management Can Boost NOI with Insights by Jay Parsons

It’s a fact: renters love their pets. In a recent survey, renters were more likely to report having at least one pet (58%) than a child (33%). As the popularity of pets continues to rise, so does the need for pet-friendly multifamily rental communities.  

At the same time, multifamily owners and operators are dealing with persistent challenges to NOI (net operating income) as difficult market conditions make it imperative to maximize occupancy and prevent unexpected out-of-pocket costs. According to Rental Housing Economist Jay Parsons, “There’s a lot of good data showing not only do most renters have pets, but they’re more likely to lease – and renew – at pet-friendly properties. Merely allowing pets isn’t enough anymore. Pet-friendly amenities go a long way with pet-loving residents.  And when done right, it’s a potential boost to a community’s NOI.”

Many owners and operators may not realize there are direct links between more effective pet policy management and higher NOI. By increasing revenue or decreasing costs, there are several ways that your company’s pet management strategy can influence your multifamily portfolio’s performance.

1. Showcase Pet-Friendly Listings to Provide a Leasing Advantage

Advertising a pet-friendly property can provide an advantage in a competitive leasing market. Renters may quickly rule out homes that do not allow pets -  just under half of all renters (44%) have passed on a potential rental property because of pet prohibitions. According to the Pet Inclusive Housing Initiative,  83% of property owners and operators say that pet-friendly vacancies are filled faster  and 79% say they are easier to fill .

In a rental market where competition for renters is high, highlighting your property’s pet-friendly policies can not only give you an edge in filling vacancies quickly – it can also help  maintain occupancy rates.  

Data from Zillow and the Pet-Inclusive Housing Initiative suggest pet-friendly policies can improve retention. According to Zillow, 60% of renters said the property allowing pets was a factor that encouraged them to stay at their current rental.  Additionally, the Pet-Inclusive Housing Initiative reports that residents in pet-friendly communities stay 21% longer.

Taken together, the benefits for attracting and retaining renters can translate to healthy improvements in NOI.  

2. Catch Inefficiencies in Your Pet Processes to Get Time Back

Does your property management team spend too much time collecting information about pets? If your process for collecting documents and pet details is inefficient, your team may spend hours emailing or calling applicants or residents repeatedly to remind them to provide missing information. Those hours could be better spent on high-value activities that contribute to growing NOI.

On top of that administrative work, there’s the challenge of navigating conversations with residents about pet policy enforcement, and helping residents who have reasonable accommodation requests for assistance animals. Each instance may feel small, but across a large portfolio, those tasks quickly add up. And every hour spent there is time taken away from initiatives that improve resident satisfaction and retention, two key drivers of NOI.

While personal touches with renters matter, the hours spent chasing documents and following up manually don’t have to. By implementing a simple online process for renters to provide this information when they apply or renew, you can reduce the administrative burden while keeping the resident experience positive.  

3. Verify Pet Information Faster to Help Prevent Vacant Units

Every day a unit sits vacant is costly – which is why your marketing and leasing teams work hard to sign leases quickly.  But all that effort can stall at the finish line if an application—or even a move-in—is delayed by missing or incomplete pet paperwork. Those delays can translate into days or even weeks where a resident’s pet is not approved and your unit remains vacant.

You can keep the leasing process on track by automating how you collect pet information from rental applicants. When renters submit a lease application, follow up automatically with a streamlined, online process to gather their pet details and documents. That way, your team has everything they need in advance to make an informed leasing decision.

4. Factor in The Operating Costs of Pet-Friendly Properties

Operating a pet-friendly community comes with additional costs and obligations for property management teams. One source estimates that the additional costs of operating a pet-friendly portfolio can be as high as $1.15M per 10,000 units. At turnover, those costs often stem from pet damage and deep cleaning, while ongoing expenses include maintaining pet-focused amenities like dog parks and waste stations, as well as the inevitable common area cleanup.

To offset this, it’s important to  maintain accurate records of the number and types of animals living at your properties, and that you  apply the appropriate fees as outlined in each lease. Collecting these fees accurately and consistently is key to keeping NOI up despite the many costs of running a pet-friendly property.

5. Cut Down on Unreported Pets

Renters may not always be forthcoming about their pets. According to  the Pet Inclusive Housing Initiative, up to 11% of renters may have unreported pets, which could affect as many as 2.5M rental properties across the country. Whether it’s an intentional omission, or an accidental oversight, unreported pets in your rental community present a major risk. To protect your property from damage and liability, you need to know about every pet. When pets go unreported, you’re not only exposed to risk, it also means lost pet revenue.

You can address this by being transparent with renters about your property’s pet policies, as well as the consequences they will face if they violate them. Make it easy for renters to share information about their pets from the start of the application process and require updates at lease renewal. Keep in mind that more pet-inclusive policies will reduce the urge for renters to withhold or misrepresent information and can allow you to earn more pet revenue. ‍

6. Prevent Misrepresented Pets

Whether intentionally, or due to a misunderstanding, renters may claim that their animal is a service or support animal even when it does not qualify as one. According to one survey of renters, 14% of dog owners registered their dog as an emotional support animal to avoid pet fees.

In no way should this occasional misrepresentation take away from the very real and important need for assistance animals for renters with disabilities.  

Handling requests for reasonable accommodation can be tricky, and you may not always be able to tell the difference between an animal that assists a resident with a disability versus a pet whose owner is misrepresenting the facts.

You can help prevent pet misrepresentation by educating residents on assistance animal rules, adopting more pet-inclusive policies, and introducing a solution for verification of assistance animals. This provides renters a hassle-free way to provide information about their animals  while giving your team the tools to review and verify.  ‍

7. Don’t Skip Verification, Recoup its Cost

Animal verification is important to prevent violations of your policies. For pets, you should verify there are no concerning behavioral issues, such as biting or aggression, and that any vaccine requirements are up to date. For emotional support  animals, it’s important to verify the documentation provided  with an accommodation request to ensure that they are  legitimate and help prevent misrepresented pets.

This is an important step, but it takes time and resources – which is why you should factor that into your NOI strategy and recoup the costs through pet verification fees.  

Make Pet Management a Win-Win for Your Staff and Community

Foxen’s new solution, PetClear, is designed to support you and your team in  overcominge the challenges of operating  pet-friendly properties. PetClear streamlines the process of collecting and reviewing pet and animal information in one easy-to-use online platform. With built-in policy affirmations, it ensures all renters review and agree to your policies and deters fraud. Additionally, it allows you to earn new revenue from efficient pet verification and reduces lost pet rent revenue. It’s a win-win for both renters and properties.
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Learn how PetClear keeps your leasing performance high, enables consistent pet policy enforcement, and improves your NOI by scheduling a demo with our team today.

Note: This content is for informational purposes only and should not be considered legal advice. For legal guidance on pet and animal issues, including those related to reviewing  reasonable accommodation requests, consult a qualified attorney or professional.

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