With pet ownership on the rise, allowing pets in rental properties has become one of the most frequently asked questions from investors. In fact, the majority of tenants now have pets, making it a crucial consideration for landlords. However, with recent legislative changes making it harder to refuse pets, investors must adapt their approach to pet-friendly rentals while still protecting their assets.
So, what does this mean for property owners? How can landlords balance tenant demand, property protection, and legal compliance? In this guide, we'll explore the pros and cons of allowing pets in rental properties, what investors need to look for, and how property managers ensure a smooth tenancy.
What Do the New Pet Legislation Changes Mean for Landlords?
The introduction of new legislation in various states across Australia is making it increasingly difficult for landlords to outright refuse pets in rental properties. Previously, many landlords had blanket "no pet" policies, but under the new rules, property owners must provide a valid reason for refusing a pet request.
This shift means landlords need to reassess their leasing terms, insurance policies, and property management strategies to ensure they remain compliant while still protecting their investment.
The Pros and Cons of Allowing Pets in Rental Properties
Like any decision in property investment, allowing pets comes with both advantages and risks.
Pros:
✔ Higher Tenant Demand: With such a high percentage of tenants owning pets, landlords who allow them open up their property to a wider tenant pool. This can reduce vacancy periods and secure longer lease agreements.
✔ Higher Rental Returns: Some tenants may be in the market to pay more for a pet-friendly property, especially in areas where rental competition is high.
✔ Responsible Tenants: Many pet owners go above and beyond to secure a rental, often providing detailed pet bios, photos, and vet records. This can indicate a level of responsibility that extends to the care of the property.
✔ Reduced Turnover: Pet owners often struggle to find suitable rental properties, making them more likely to stay longer, reducing tenant turnover.
Cons:
- Potential Property Damage: Pets can cause wear and tear, from scratched floors to damaged gardens or carpets.
- Odour and Hygiene Concerns: Lingering pet odours, hair, and allergens may require additional cleaning and maintenance after a tenant vacates.
- Neighbour Complaints: Issues such as barking dogs, aggressive behaviour, or pets damaging communal areas can lead to disputes with neighbours or strata management.
- Insurance Considerations: Not all landlord insurance policies cover pet-related damages, so investors must choose a policy that offers adequate protection.
How Property Managers Handle Pets in Rentals
A proactive approach to managing pet-friendly rentals is essential for landlords to feel secure in their investment. Here's how professional property managers ensure a smooth experience:
1. Thorough Pet Screening
Before approving an application with pets, property managers gather key details, such as:
- Type of pet (dog, cat, bird, etc.)
- Breed and size
- Age and temperament
- Whether it's indoor or outdoor
Many pet owners also provide a pet bio, which includes vet records, training certifications, and even references from previous landlords, helping landlords make informed decisions.
2. Special Lease Clauses for Pets
When a pet is approved, tenants are required to sign a pet agreement, which typically includes:
- Regular professional carpet cleaning and deodorising
- Flea treatment at the end of the tenancy
- Repairs to any pet-related damage (gardens, flooring, walls, etc.)
- Neighbourhood noise and disturbance guidelines
3. Routine Inspections to Monitor Pet Impact
Routine property inspections allow property managers to check for any pet-related damage, including:
- Scratches on floors or doors
- Excessive pet hair and odour
- Wear and tear on gardens or outdoor areas
If any concerns are identified, tenants are advised of necessary maintenance or cleaning requirements.
4. End-of-Lease Cleaning and Bond Claims
At the end of a tenancy, tenants must provide receipts for:
- Professional carpet cleaning and deodorising
- Pest treatment
If the property is not returned to a satisfactory standard, property managers will request re-cleaning. If issues persist, further action is taken, which may include:
- Hiring specialised cleaning services for pet-related odours or stains
- Seeking compensation from the tenant's bond for necessary repairs
Landlord Insurance and Pet Damage – What You Need to Know
While we can't provide specific insurance advice, it's crucial that landlords select a specialised landlord insurance policy that covers pet damage. Some policies may cover $22,000 worth of pet damage, while others offer coverage of $60,000 or more.
When choosing landlord insurance, consider:
✔ What pet-related damage is covered? (e.g., scratched floors, urine damage)
✔ Does the policy cover temporary accommodation for tenants if repairs are needed?
✔ What proof is required to make a pet damage claim?
Investors should always read the fine print to ensure they're adequately protected against potential pet-related risks.
Key Takeaways for Property Investors
- Pet-friendly rentals attract more tenants, reducing vacancies and increasing rental income.
- Landlords cannot outright refuse pets under new laws without a valid reason.
- These changes come into effect 19th May 2025
- Property managers use strict screening, lease clauses, and inspections to protect the property.
- End-of-lease cleaning requirements ensure properties remain in top condition.
- Specialised landlord insurance is essential to cover potential pet damage.
As legislation continues to evolve, investors must stay informed and work with experienced property managers to navigate pet-friendly rentals successfully.
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