Profitable Pets: Making Friends with Fido and Fluffy

Tweety may have made the exclamation, "I thought I saw a puddy-cat!" popular, but it's real estate managers who say it most often, as they walk their properties counting those whiskered faces peering through the windows. Let's face it, even when the lease specifically prohibits it, many residents still sneak a cute canine, furry feline, or feathered friend onto the property. Even if you don't allow pets on your properties, you still have them.

Properties may adopt a no-pet policy without consideration of the alternative. While owners and managers have concerns about allowing pets, perhaps because of experiences with irresponsible pet owners, it doesn't have to be that way. Many apartment owners and managers have found that allowing pets has resulted in increased occupancy, additional income, and more satisfied, loyal residents. Indeed, it makes good business sense to maintain an open and responsible "pet owners welcome" policy.

If you've turned away potential residents because they have pets, it may be time to rethink your pet policy. If you already allow pets, this might be the time to review any existing policies to make them more effective.

Market Share

A quick look at the statistics of pet ownership can make you wonder how we ever fill any apartments without pet-owning residents. Americans share their homes with over 126 million cats and dogs, not to mention other small pets such as birds, hamsters, and the like. Nancy Peterson, issues specialist with The Humane Society of the United States (HSUS) reports, 'Approximately one out of every two renters in the United States have pets as family members."

Accepting pets increases the marketability of your apartments and doubles the pool of prospective renters. Widening your customer base translates into increased revenues, in the form of higher occupancy and increased rents because of increased market demand.

Loyalty Lowers Turnover

It's not just in times of high vacancies when a "pets welcome" policy can help with profits; turnover can be reduced as well-a substantial savings to the bottom line.

Pet owners, when chosen wisely, can demonstrate the stability we prefer in residents. A survey by the American Animal Hospital Association reports that more than half of us spend over two hours a day with our pets, and 84 percent of us consider ourselves emotionally dependent on our animal companions. This loyalty to pets can translate into loyalty to your property. Because they know that pet-friendly housing is scarce, and because they tend to be dependable in other aspects of their lives, responsible pet owners generally rent for a longer period of time than residents who do not own pets.

There are two key elements to a successful pets-welcome policy. First, you need to identify and allow only responsible pet owners. Second, it is important to establish effective pet policies and a strong pet agreement.

Responsible Pet Owners

Since the chances are 50/50 that you are a responsible pet owner yourself, you probably already know how to identify the types of pet owners you will want to allow on your property. It is a good idea to require the pet owner to submit a Pet Application Registration Form (along with a photograph for identification purposes), and a Pet Health Report from the veterinarian. These forms offer a wealth of information about the owner's level of responsibility, and give you all the specifics about the pet.

You'll also want to interview each owner and create a checklist of those important questions to ask. (Suggested forms, reports and interview questions are available through the HSUS). If the prospective resident has a dog, meet the dog to observe the animal's temperament and the owner's supervision of the animal. When you call on previous residential references, don't forget to ask about the animal's behavior as well.

Size Isn't Everything

Residents of numerous high-rise buildings in northeastern cities can tell you that keeping large dogs in apartments is the standard, not the exception. Yet, many garden-style apartments adopted the 20-pound limit years ago.

In a study conducted by Rob Foellinger, president of MarkeTactics Consulting Group, he debunks the myth of a 20-pound weight limit. Polling dog trainers and veterinarians across the country; Foellinger discovered that out of the top ten breeds that do best in apartments, only one weighs less than 20 pounds, and that the average weight for the preferred breeds is 50 pounds. "Out of the top 10, seven were rated by the American Kennel Club as the most popular dogs. This means we are eliminating 70 percent of dog owners from our potential resident base," states Foellinger.

He quoted another source, Evan's Guide to Civilized City Canines, by Michael Evans, who chooses many big dogs as great dogs to live in New York City apartments. Evans particularly recommends Golden Retrievers, with an average weight of 70 pounds.

Be sure to consider these statistics when determining if a size limit is truly required. What matters is the behavior of the individual animal, and size or breed doesn't determine that-you will.

The Damage Dilemma

When addressing the possibility of allowing pets on their properties, most managers are concerned with the possible damage to units that animals might cause. However, there are a number of safeguards that you can implement to avoid damage. While they may differ based on local laws regarding pets, here are a few to consider:

* Increase the deposit. If laws allow, don't designate it as a "pet deposit". Instead, make it part of the security deposit, which can be applied to any and all damages, regardless of the cause.

* Include all important issues in the lease and pet agreement, using strong language to explain that the resident is liable for all damages. (The HSUS has a sample on its web site at www.renrwirhpers.org). Just as with your lease agreement, discuss each pet policy with the resident at the time the agreement is signed-and stress compliance.

* Complete a walk-through with the resident before the unit is vacated. Indicate any damage on your paperwork and be sure that both you and the resident sign the form. Be sure to take photographs for documentation.

Create a Pet-Friendly Community

Making sure your pet-owner residents are responsible is key to maintaining an effective pets welcome policy at your property. But even responsible pet owners need help occasionally being responsible. Here are a few tips to create a pet-friendly community:

* Dog parks are becoming increasingly popular in many cities. Create one within your community and provide waste disposal receptacles. This can be a unique amenity to offer your pet-loving residents.

* No room for a dog park? Provide a dog walking area instead. Don't forget the receptacles!

* Establish pet zones by designating specific buildings in garden-style properties, or floors in high-rise buildings for apartments with pets. Pet owners like to associate with other pet owners and this increases their satisfaction with your community as well.

* If you're not already doing so, offer blinds for window coverings instead of draperies. They are easily cleaned and repaired--perfect for car and dog owners.

Treats For All!

Of course pets enjoy treats, but pet owners do too. Make the most of your retention efforts by appealing to pet-owning tenants' interests and create even more loyalty among your pet-owning residents.

* Dog Obedience Classes. Dog owners can gather to learn about training under the guidance of a professional trainer. The cost can be spread among attendees, providing an inexpensive alternative, or you may want to offer it as a property-sponsored event.

* Dog Park Social. Organize a dog park outing for all your dog-owning residents. What a great way for them to get to know their neighbors while bonding over a common interest. Bring lots of treats for the dogs and their owners!

* Animal Grooming Day. There are mobile groomers in many cities-arrange a day per month or quarter for the mobile groomer to be on duty. The residents will pay for the services, and you get credit for the convenience!

* Guest Speakers. Invite your local animal shelter to speak to your residents about responsible pet ownership and solving common pet behavior issues or have a veterinarian speak and present animal emergency first aid tips. Some individuals speak for free in exchange for the exposure to potential clientele.

Target Marketing for Higher Profits

Now that you've developed tools to maintain a responsible pets-welcome policy, you'll want to get the word out and enjoy the benefits. Contact your local animal shelter; they may include you in pet-friendly housing directories and offer assistance to help your residents solve any issues. Many also work to help make good matches between tenants and appropriate pets for your community.

Don't forget that animal-related businesses such as veterinarians, pet supply stores, groomers, boarding kennels, pet sitters, and dog trainers are good avenues to promote your residential community at no charge. Remember to mention your open-door policy for responsible pet owners in any advertising.

If you're still hesitant about allowing pets, why not transition a few units and see how things work out? The next time you pass that cat in the window, you'll know why you "saw a puddy-cat," but this time you'll be glad you did!