5 Pet Trends in Rental Properties for 2023

At Fortiva Residential, we have a passion for statistics, particularly comparative statistics that display changes from year to year. As things are continually evolving, even the smallest details, such as the pet rent, can change rapidly and may go unnoticed by most people. However, to keep up with the times, a company must be prepared to embrace change and take proactive steps rather than reacting to it. Why? Because failing to keep up can cost your company money or expose you to risk! That's why we're here to help.

We've gathered data on the top 5 trends regarding pets in rental properties so you don't have to. This article covers everything from how pets can affect vacancy time between units to the surprising thing that 33% of tenants have concealed from their landlords.

So, without further ado, here are 5 pet trends property managers and owners need to know about in 2023.

Statistic: % of Renters Owning a Pet

Trend: UP

• 2023 surveys report that between 72% and 90% of renters have at least one pet (Avail, 2023; Humane Society of the United States, 2023).

• This figure is vastly up from 2021, in which 57% reported having a pet, and 2020, which came in at 51% (Zillow).

• The 2023 figure has more than doubled since 2019 when Zillow's Consumer Housing Trends Survey found that only 31% of renters have dogs and 22% have cats.

Why It Matters

• 43% of pet owners state they'd move to better accommodate their pet (National Association of Realtors).

• With pet ownership steadily increasing year over year, properties that have blanket bans on pets could miss out on a large portion of the renter pool, leading to low occupancy.

• In terms of occupancy, pet owners are, statistically, better tenants! Pet owners stay in their units for an average of 48 months compared to non-pet owners who stay an average of 18 months (TenantCloud, 2019). Further, pet-friendly units take an average of 19 days to lease compared to non-pet-friendly units, which take an average of 29 days (TenantCloud, 2019).

What Can Be Done

• There's no time like the present to review your property's pet policies and fees—are you charging adequate pet deposits and pet rents? You should review some of your move-out inspections from tenants who had pets and consider whether any damages were fully covered by the additional deposit.

• You should also consider the percentage of your tenants who have pets on file. Is it significantly lower than national averages? You should look into why this is. It could be that pet ownership in your area is low overall, or, it could be that your tenants are part of the growing number of renters concealing pets (we'll address frequency and why this matters later on).

Statistic: % of Pet-Friendly Apartments

Trend: UP

• In 2020, PetFinder.com reported that approximately 50% of apartment complexes allowed pets.

• In 2023, the Humane Society of the United States reported that up to 78% of apartment complexes allow pets, representing significant growth but still leaving almost 1 in 4 apartments pet-free.

Why It Matters

• As more and more apartments welcome pets, the communities that don't can suffer as renters have plenty of pet-friendly options to work with. In fact, many renters search for apartments using filters such as 'pet-friendly', meaning that these non-pet-friendly apartments (including those that allow pets but do not advertise it) may never been seen by a key percentage of renters.

What Can Be Done

• Is your community pet-friendly? If you don't allow any pets, consider why this is and whether it would benefit your community to become pet-friendly. This may be an important change if your property has low occupancy, for example.

Statistic: % of Renters Hiding Pets

Trend: DOWN

• In 2019, at least 20% of renters were hiding a pet from their landlord (TenantCloud, 2019).

• By the beginning of 2022, statistics were suggesting that up to 1 in 3 pet-owning renters was concealing a pet (Quintain Living, 2022).

• In 2023, the trend appeared to decline, perhaps due to the increase in pet-friendly accommodations, though studies still found that between 10-18% of renters were actively hiding a pet (AgentAdvice.com, 2023; The Independent, 2023).

Why It Matters

• Only 1 in 10 of those concealing pets report being caught (The Independent, 2023).

• If a tenant is concealing an animal, then they have not completed a pet screen. This means the pet could be missing vaccinations, on a banned breeds list (for the property or the State), oversize limits, etc, and there could be liability issues. For example, if your insurance provider requires certain breeds be excluded from the property, then you may not be covered by damage or harm done by that pet.

• If your tenant is concealing an allowed pet, then they are avoiding paying pet fees, meaning your property loses out on owed income. Since 82% of pet owners report being willing to pay the fees if they can keep their pet, it is likely that the tenant is willing to pay but simply trying their luck to avoid this (AgentAdvice.com, 2023).

• Concealment also means that a pet deposit is unlikely to have been paid, meaning that you may have an insufficient deposit to cover any pet-caused damages at move-out. Now, studies have shown that the average cost of tenant damage is only nominally higher for those with pets (an average of $39 more per year), but this could easily be offset by an additional pet deposit.

What Can Be Done

• Almost half of those caught with a concealed pet were found out by a surprise visit (The Independent, 2023). This is why TenantCloud encourages conducting pet audits/inspections to ensure that tenants are not concealing animals.

• If you discover a concealed pet, you should take steps to bring the tenant into compliance (either by having them sign a pet addendum and screening the pet, or by enforcing that the tenant either removes the pet from the property or vacates).

Statistic: Desirability of Pet Amenities

Data Provided by J Turner Research

• 65% of renters with pets state it's important for their community to have pet waste stations.

• 64% searched for on-site dog parks.

• 45% wanted outdoor dog runs.

Why It Matters

• As the majority of renters are pet owners, their amenity needs must be considered, and the data's clear on what they need.

• Pet-owning renters were asked to rate how important pet amenities are when deciding to renew or move (1 = Not important, 10= Very important). The average result was 7.11, meaning that these renters take pet amenities seriously when considering their options!

What Can Be Done

• Consider the pet amenities on your property. Are they well used? Perhaps you have amenities such as a dog wash station but are missing more demanded features, such as pet waste stations and a fenced-in dog area. You should survey your tenants and find out how frequently they use the current pet amenities and what they would like to see for their furry friends.

Statistic: Average Pet Rents

Trend: UP

• In 2021, pet rents were being reported to average $25-$50 a month (Landlord Gurus, 2021).

• By 2023, pet rents were averaging $50-$100 per month, or 1-2% of the monthly base rent (Obie Insurance, 2023).

• The increase in pet rent follows the overall trend of raising rents across 2020-2023.

Why It Matters

• Charging pet rent does more than just increase your property's income. It also offsets the costs of additional wear and tear on the property and the cost of pet amenities.

• Having too low a pet rent may mean that you are missing out on funds, whereas charging too much for pet rent could result in pet owners renting elsewhere or concealing pets to save money.

What Can Be Done

• Research the average charges in your area and consider whether your current rents are in line.

• Look at the costs associated with having pets on the property—are your pet rents and associated pet fees enough to cover these expenses?

So there you have it—5 statistics that might surprise you about pet owners in rental properties. Which of these statistics surprised you the most? What choices have you made about pets, and how did they work out?