67% of U.S. households own a pet according to the 2019-2020 National Pet Owners Survey conducted by the American Pet Products Association. The number of households has steadily increased year over year.
Nestwell Property Management has created a solution to protect you and your property from pet damage because animals are here to stay.
Nestwell is one of the only property management companies in Utah that is committed to protecting your property against pet damage!
Introducing Pet Damage Protection
Nestwell Minimizes Your Risk and Maximizes Peace of Mind
The Benefits of Allowing Pets
While it might give you heartburn, there are many real estate investors, like you, who are successfully renting out their properties to tenants with pets without much fuss or struggle. Here are some benefits that come with opening up to furry friends -- and their owners.
Benefit 1: Great Potential for Higher Rental Income and Returns
A 2011 study of the condominium market in the Journal of Real Estate Finance and Economics found that landlords who placed no restrictions on pet ownership were able to enjoy an 11.6 percent rental premium over landlords who did not allow pets. On average in Salt Lake City, Nestwell sees pet-friendly properties renting for $50 to $100 more per month.
Benefit 2: Longer Tenancies
Landlords who allow pets often enjoy average longer tenancies from their renters. Tenants with pets were found to stay longer than tenants without pets by an average of 46 months, according to a 2005 Firepaw study. This is despite a higher rent being collected for the property and proves that people will be loyal, stay, and pay when their pets are accommodated. A tenant who wants a pet will get one, even if that means they need to move.
Benefit 3: Larger Tenant Pool
The same study also found that the vacancy rate for pet-friendly housing was significantly lower than “no pets allowed” rentals. Nestwell's research shows owners also rented their properties faster, spending less than half the usual amount of time marketing pet-friendly accommodations. Pet-friendly housing receives 2X as many applications.
How does this Program work?
Nestwell thoroughly screens every pet that tenants want to get approved. Nestwell partnered with a third-party pet screening company that specializes in screening and ranking the risk of pets.
When a pet is approved, the tenant pays Pet Administrative Fees, Pet Deposits, and/or monthly Pet Fees each month to Nestwell Property Management.
Beginning January 1, 2020, Nestwell keeps the fees and uses them to cover our costs of administering the program and making repairs to your property if an approved pet causes damage. For example, if an approved pet in your property causes damage to the carpet and $1,500 of carpet needs replaced, Nestwell replaces the carpet at no cost to you!
This program covers up to $3,000 in damage above the tenant's deposit!
The program does not cover emotional support animals, companion animals, service animals or unapproved pets that the tenant concealed from us. However, we will try to recover the pet admin fees that the tenant was required to pay, and if recovered, we would then be able to cover the damage.
Nestwell's Policy on # of Pets
GENERAL RULES (Unless otherwise restricted by Owner, HOA or City):
1 Pet allowed in stacked condos, or any multi-unit that does not have access to a yard
Up to 2 Pets allowed in townhomes or multi-units with yard access
Up to 3 Pets allowed in Single Family Homes
Risks of Renting to Tenants With Pets
We’d be lying if we said that renting to pet-owners is all fun and games (or fetch and play)! There are several considerations to take into account before opening up your space to that Daschund with the sweet eyes–but very sharp teeth.
It’s clear that dogs, cats, and other pets can cause damage such as scratching the doors, chewing the floors, and having accidents on the carpet. These are just a few of the exploits that unattended and improperly trained pets can have. There are costs associated with the cleanup and repairs to be factored in when making the decision to allow destructive pets into a rental home.
This is why Nestwell will cover up to an additional $3000 when pets cause damage above the security deposit amount. On average our security deposit is $1500. So on average, you have $4500 worth of damage covered by Nestwell. If the deposits and $3000 are exhausted, Nestwell will pursue the tenant and file collections.
Increased Liability or Physical Injury
Increased liability is another concern for many of our Nestwell clients. It’s worth noting, however, that most states have strict liability statutes which hold dog owners, not landlords, responsible for the behavior of their dogs. You do have the responsibility to report a dog that is dangerous and may be responsible for anything that should occur if the dog is under your care and an incident should happen. See UCA Codes
Increased Insurance Costs
Pet-friendly landlords can face higher insurance costs. For example, the Firepaw study noted that pet-friendly landlords reported an average annual insurance premium of $150 more. Consider checking with your insurance provider to see if becoming pet-friendly will affect your rates, but keep in mind that these expenses can easily be recovered in rent premiums and reduced vacancy costs. Shop for the right insurance.
Potential Complaints From Neighbors
Another concern that landlords have is complaints about noise–even though noise complaints may be less common than you think. According to Firepaw, only about one-third of landlords have ever had noise problems. Modern buildings are quite soundproof and many animals eventually settle down after a short bout of barking or meowing.
Why is Nestwell offering a Pet Damage Protection Program?
67% of all tenants have pets and that number is increasing.
Higher Occupancy Rates / Reduced Vacancy
Keep Tenants Longer. Longer-Term Tenants Who Renew
Avoid Fair Housing Violations & Discrimination Suits
Less Worry and Headache
More Security / Peace of Mind
By allowing Nestwell Property Management to manage your home approve a pet, are automatically enrolled in Nestwell’s Pet Damage Protection Plan at no cost to the Owner. If Nestwell approves a pet that causes damage to the premises, Nestwell will cover pet-caused damage up to $3,000.00 (Three Thousand Dollars) in the case that cost of the pet damage is in excess of the tenant’s security deposit held by Nestwell.
PET DAMAGE PROTECTION TERMS AND CONDITIONS: CDA Properties Inc. dba Nestwell Property Management's policy is that all properties that we list are "pet-friendly" unless an HOA or city with jurisdiction over the property has prohibited pets in their covenants, community rules, or ordinances. This is to ensure compliance with fair housing laws by treating all properties and applicants equally, as well as allowing for standardized policies and procedures within our brokerage. To assist in possible pet-related damages, Nestwell will provide a Pet Damage Protection Program at no additional cost to the Owner. To cover the cost of the Pet Damage Protection Program, Nestwell reserves the right to collect additional fees from Tenant that include but are not limited to: administrative fees, pet deposits, and additional fees. Should there be any pet-related damage, Nestwell will first pull from the security deposit, then once the security deposit is exhausted, will cover an additional $3000 for pet-related damages through the Pet Damage Protection Program. Nestwell will solely determine what pet-related damage is. Should damage covered by the Pet Damage Protection Program occur, a Nestwell approved vendor will make the needed repairs. Vendors will be used and approved at Nestwell’s sole discretion. Assistance Animals, companion animals, emotional support animals, and service animals as defined by federal and state law (to include any animal that assists a tenant in any way with a legitimate disability) are not considered pets, cannot be denied even in an HOA/COA community that does not allow pets, and are not subject to any pet fees. Therefore Assistance Animals cannot be covered by the Pet Damage Protection Program. The benefits of the Pet Damage Protection Program expire upon the cancellation of management services by Nestwell, or sale of the property. Both Nestwell and Owner understand that Pet Damage Protection Program is NOT insurance and is in no way a replacement or substitute for any insurances that may be offered by licensed insurance agencies. Nestwell reserves the right to modify the Pet Damage Protection Plan with a 30-day notice to the Owner. The owner does hereby agree to this policy.