Industry News Eleanor Bateman 08/03/2024
Is the chance of renting to pet homeowners inflated? Following the publication of a brand new report by Battersea Cats and Dogs Home, contemplating the significance of pet-friendly renting, Senior Campaigns and Public Affairs Officer, Eleanor Bateman, seems to be on the dangers.
We are a nation of animal lovers, but the problem of pets within the rental sector has all the time been problematic.
Figures printed by Zoopla recommend that simply 7% of property listed on the portal is marketed as ‘pet-friendly’.
This is prone to be partly because of the introduction of the Tenant Fees Act, which caps deposits at 5 weeks’ lease (the place annual lease is lower than £50,000) and prohibits landlords from asking for any extra pet-related fees which could mitigate the perceived threat.
The Renters (Reform) Bill is because of amend the Tenant Fees Act to permit landlords to ask tenants to take out or cowl the cost of pet insurance coverage. But will this be sufficient to encourage extra landlords to just accept pets? And are landlords overestimating the dangers of letting to pet homeowners?
Removing boundaries to renting with pets
NRLA analysis means that two-thirds of landlords are keen to let to pet homeowners.
However, some have been involved for the reason that Bill’s publication that the brand new proper afforded to tenants to request a pet means they are going to be compelled into accepting a pet in unsuitable circumstances, for example in a House in Multiple Occupation (HMO) the place different tenants are affected.
But the Bill merely provides a authorized footing to what often occurs in follow – a tenant or potential tenant can ask for permission to maintain a pet and the owner can settle for or present an inexpensive justification for refusal.
The Bill units out a timeframe for responding to any request – which charities like DogsBelief say will assist hold any separation of pets from their homeowners to a minimal – however at forty-two days, it’s unlikely to be a trigger for concern for many landlords.
Do the advantages stack up?
Research commissioned by Battersea Dogs and Cats Home has now examined the proof and located that, whereas pet harm does happen, it’s far much less frequent than most assume.
The examine finds that the advantages of accepting pets embody longer tenancies, decrease advertising and marketing prices, and higher relationships between landlords and tenants.
It additionally means that pet-related harm could also be much less financially burdensome than non-pet-related harm, with common pet-related harm amounting to £300 versus non-pet-related harm of £775 within the examine.
A cost-benefit evaluation was additionally carried out, which discovered that landlords might financially profit from renting to pet homeowners.
The Net Present Value (NPV) varies relying on the property kind, pet kind and whether or not a ‘pet rent’ (the next lease for accepting a pet) is charged, however discovered that, total, renting to pet homeowners is optimistic for personal landlords, and will be financially helpful.
Over half (51%) of landlords surveyed acknowledged that they didn’t cost the next lease for permitting a pet, whereas the typical extra cost amounted to £29.10 per 30 days.
However, the cost-benefit evaluation discovered {that a} minimal ‘pet rent’ surcharge of £2.71 per 30 days would lead to a NPV of 0, that means landlords had been no worse off than if that they had let to a pet-free family, suggesting that the prices of pet-related harm are deemed to be greater than they’re.
Will reforms go far sufficient?
The modification of the Tenant Fees Act to allow pet insurance coverage fees have to be welcomed and will definitely go some solution to assuring landlords that the prices – nevertheless minimal – of renting to households with pets will be recouped.
But the practicalities of the reforms are nonetheless unsure – how a lot will insurance coverage cost, ought to tenants take out the coverage or ought to the owner? With 81% of landlords indicating that cleansing and fumigation was wanted on the finish of a pet-friendly tenancy, will insurance coverage lengthen additional than harm to fixtures and fittings? The market might want to adapt, as with out ample insurance coverage choices, the reforms are prone to fail.
More data
You can learn the report in full right here.
Read the NRLA’s pet steering right here.
