It is natural for property investors to be wary of allowing pets into a rental property based upon prior experiences or concerns over what damage could occur to the property.
Should you decide not to allow pets in your investment property, this should be incorporated in pre-tenancy marketing to avoid any confusion by prospective tenants which could hinder or delay the tenancy application process.
Should you decide to allow a pet in your rental property, some definite guidelines should be placed at the start of the tenancy and written as additional terms of the tenancy agreement so there is a firm understanding of the consent that you have granted.
Firstly, when checking the tenant's reference, it is essential to confirm if the pet has lived in past tenancies and if so, whether the pet created a disturbance, nuisance or damage during that previous tenancy. It's also important to find out the number and type of pets. Although near impossible to police during a tenancy, clear guidelines should be sought and made regarding whether the pet will remain outdoors at all times or will be allowed indoors under certain circumstances. In addition to terms such as the tenant fumigating the property and steam-cleaning the carpets at the end of the tenancy, restriction of the number and type of pets should be written into the agreement.
In addition, some insurance policies do have "Pet Damage" coverage. We are aware of EBM Rent cover policy which covers pet damage up to $65,000. This covers damage to fixed contents and building caused by a tenant's domestic pet kept at the property, including those not named on the lease. This may be the safety net you are after to allow pets in your property.
According to an article written by EBM Rent cover:
A 2019 survey by Animal Medicines Australia found that 5.9 million households own a pet, and for those that don't, over half would like to. When asked what barriers prevent pet ownership, the main response was a lack of suitable housing. In addition, the links between pet ownership and improved mental and physical health is now well documented. As tenants, pet owners are often willing to pay a little more and lock in longer leases to secure a home for themselves and their fur-babies. Yet only 10 per cent of rental properties currently allow tenants to keep pets, leaving a significant gap in the market.
Experience has shown that by stipulating clear guidelines at the beginning of the tenancy, it is possible to have a harmonious pet friendly tenancy in your Newcastle investment property.