Insurance insights

The benefits of allowing pets in rental properties

New South Wales is set to become the next state to introduce changes to pet legislation, shifting the landscape for renters and landlords alike. A common concern among landlords is the potential for pets to cause damage in rental properties, but as a landlord insurance provider, our claims history tells us that humans, not animals, are more likely to cause damage.

With laws evolving across Australia to promote more open conversations about renting with pets, NSW is soon to follow suit, making it a great time to reconsider your stance on renting to pet owners.

Still unsure? Here are some reasons why you might want to consider renting your property to those with furry companions…

Expand your tenant pool

There is demand for pet friendly properties. A 2022 survey by Animal Medicines Australia found that 6.9 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. As a landlord, you can capitalise on this untapped market and expand your tenant pool to allow for those with furry friends.

Rent properties faster

Currently, properties are renting quickly on the back of low vacancy rates. However, historically this hasn’t been the case. And, who knows what could happen in the future. So, keep this one in the back of your mind. If you open your property’s doors to allow for those with pets, it may mean you secure tenants faster. When landlords have a large pool of potential candidates to choose from, they can increase the chances of finding someone suitable and renting the property in a shorter time frame. Ultimately – more tenants mean more competition which could mean faster letting and lower vacancies.

Earn more

Being open to accommodating tenants with pets may allow you to achieve greater rental income compared to similar competing properties that have a pet-ban. This is particularly true if your home is suitably designed for pets and has features like a good-sized fenced backyard.

Happy tenants mean happy homes

The links between pet ownership and improved mental and physical health is now well documented. In fact, pets are said to reduce stress, provide companionship, require routine and organisation and provide a sense of purpose. Happy tenants often lead to happy homes (which leads to happy landlords).

Open and honest communication

We have heard of it happening too often! Tenants who are banned from having pets sneak them into the property. They can get away with this by keeping the pet hidden, moving them out of the property during inspections. By allowing pets in a property, you know exactly what you are getting (and can often require a pet ‘resume’ so you can get to know the little fluffball before it moves into the property).

Pet damage is covered

Pet damage can be covered with a landlord insurance policy, offering protection for domestic animals living at the rental property (and a good policy, like RentCover Ultra and Platinum, will have zero sub-limits and will even extend cover to include damage caused by those not named on the lease). While we hope nothing goes wrong, sometimes the unexpected occurs. When it does, an EBM RentCover landlord insurance policy offers up to $70,000 cover for pet damage.

For details about EBM RentCover’s pet damage feature, click here. Or, if you have questions about cover and claims, contact the EBM RentCover team on 1800 661 662.

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.