Boost your rent by up to 30% without renovating

Thursday 22 Aug 2019

In almost every capital city, median asking rents for pet-friendly apartments are higher than for homes that don’t allow pets, according to Domain Group data.That means landlords who allow pets could boost their rental return by simply checking a box.

Apartments advertised as pet-friendly are rarest in Melbourne, representing less than 3% of all rentals, followed by Adelaide (6%) and Sydney and Canberra (both 7%).

Houses are more likely to be pet-friendly, but the proportion is still low in Melbourne (9%) and Sydney (21%). On the other hand, more than half of Greater Brisbane rental houses allow pets, while in Darwin, more than two-thirds are pet-friendly.

 

Proportion of properties advertised as pet-friendly

City

Houses

Apartments

Adelaide

47%

 6%

Brisbane

52%

14%

Canberra

39%

 7%

Darwin

70%

17%

Hobart

37%

9%

Melbourne

9%

3%

Perth

49%

10%

Sydney

21%

7%

 

 

 

Sydney investors have the most to gain by allowing pets, according to the analysis of rental listings from the March 2019 quarter. Asking rents for apartments that allow pets are 11% higher than those that don’t, which equates to $60 each week or $3120 per year.

With landlords in Sydney facing tougher competition as the rising supply of rental properties pushes down rents, allowing pets could provide investors with a point of difference and minimise the time a property remains on the rental market.

In Melbourne and Darwin, rents for pet-friendly units are 8% higher, and in Adelaide and Brisbane there’s a 5% difference in price. 

In areas where pet-friendly rentals are least common, the premium is often higher. 

Less than 3% of apartments in Sydney’s Canterbury-Bankstown area were advertised as pet friendly, but rents were 26% higher, with landlords pocketing an extra $105 per week or $5460 per year. 

In the Liverpool and Fairfield areas, only 1% of apartments are pet-friendly, and are advertised for 18% more, costing tenants an extra $60 each week or $3120 per year.

It’s a similar situation in Melbourne’s inner city, where less than 1% of units allow pets and rents are 30% higher. That trend continues among apartments in the inner east, northern suburbs and bayside areas.

Where renters with pets pay the biggest premium – apartments

City

Region

Median rent – pets allowed

Median rent – pets not allowed

Price difference

Melbourne

Inner city

$550

$422.50

$127.5

30%

Sydney

Canterbury/Bankstown

$515

$410

$105

26%

Sydney

Western suburbs

$400

$330

$70

21%

Sydney

Sutherland

$530

$460

$70

15%

Sydney

Northern suburbs

$510

$450

$60

13%

Brisbane

Southern suburbs

$430

$380

$50

13%

Sydney

Upper north shore

$580

$515

$65

13%

Melbourne

Bayside & south east

$450

$400

$50

13%

Perth

Western suburbs

$360

$320

$40

13%

Sydney

Inner city

$875

$780

$95

12%

 

 

 

 

 

 

 

Where renters with pets pay the biggest premium – houses

City

Region

Median rent – pets allowed 

Median rent – pets not allowed

Price difference

Brisbane

Inner city

$740

$610

$130

21%

Sydney

Northern beaches

$1,050

$900

$150

17%

Sydney

Hawkesbury

$450

$395

$55

14%

Canberra

Gungahlin

$630

$560

$70

13%

Sydney

Inner west

$800

$720

$80

11%

Sydney

Liverpool/Fairfield

$500

$450

$50

11%

Melbourne

Inner west

$500

$450

$50

11%

Sydney

Canterbury/Bankstown

$555

$500

$55

11%

Sydney

Eastern suburbs

$1,100

$995

$105

11%

Sydney

Lower north shore

$1,050

$950

$100

11%

 

 

 

 

 

 

In Sydney, the northern beaches has one of the highest concentrations of pet-friendly houses. More than one-third of rental houses are pet-friendly, and landlords who allow pets can expect rents to be 17% higher.

Pet ownership is common among families renting houses there, according to Benny, whose agency specialises in the area. But he said trends were changing.

“Over the past two or three years we’ve seen more of a shift towards younger couples,” he said. “We’re finding it more common for two-bedroom apartments.”

Although property damage is a concern for many landlords, Benny said it was not the only issue. “For strata buildings and apartments, the biggest concern is noise and upsetting other neighbours.”

Apartments or townhouses with large balconies or courtyards will appeal to pet owners.

Tips for landlords renting to pet owners

Pet-friendly properties will appeal to more tenants and can achieve higher rents, but there’s more to consider than just the rental return.

  • Choose the right property and features – An apartment with a large outdoor area or a house with a big backyard will appeal more to pet owners. Durable flooring such as tiles is less likely to be damaged than polished floorboards or carpets.
  • Have a pet renting policy  Stipulate the number of pets allowed, acceptable animals or breeds, and any size limits.
  • Ask for a pet resume – Tenant are often happy to supply references from previous landlords or property managers. You may also wish to meet the pet beforehand.
  • Investigate strata bylaws – Some complexes may not allow animals, while others have rules about the type or size of pet and may require residents to register pets or ask for permission first.
  • Check your landlord insurance  Tenants are generally liable for damage caused by pets, apart from reasonable wear and tear, but it’s wise to check your insurance policy as well to find out exactly what is and isn’t covered.
  • Claim repairs at tax time  The cost of repairing reasonable wear and tear, such as refinishing floors and repainting walls, can be deducted from your rental income to minimise your tax bill.