Should You Allow Pets in Your Rental?

Cats in a box in an apartment

Pets can be messy. If improperly trained, they may claw and bite at furniture, soil carpets and hardwood and scratch the paint off the walls. It’s true that Man’s Best Friend can be a major pain for landlords and property managers. But did you know that 68% of American households own at least one pet? That’s over 85 million families living their lives with some kind of furry companion, with 4.8 million residing within Washington State. All of these families need a place to live, and yet only 55% of landlords allow pets. There’s a major demand for quality housing for these furry tenants and their human roommates. What are some of the benefits of allowing pets in your rental properties, and what factors should you take into consideration when deciding?

To Pet or Not to Pet

Deciding whether or not to allow pets to stay in your property is a substantial decision, and it comes with both befits and consequences. The biggest perk is that it gives you an opportunity to charge a higher rent or add an additional pet rent or deposit. Pet rent especially acts as a modest but recurring additional stream revenue stream that doesn’t require much effort. Opening your property up for animals also taps into a market many property managers choose to ignore. These tenants are usually more responsible, and they’re almost always looking for a place they can call home for an extended period of time. It can be stressful to move with a pet, and if you help them out, they will be more likely to want to return the favor.

Of course, there are also some risks. Pets can cause property damage, especially dogs and puppies with an affinity for chewing and scratching. Certain dogs may have barking problems, and both dogs and cats may leave unpleasant odors if stressed or untrained. It’s important to have a consistent, building-wide policy on whether or not your building is pet-friendly, as it’ll alert other prospective tenants of an animal presence and that there may be allergens in the common areas.

Things to Consider

You shouldn’t just add a quick tag on your listing saying that your property is pet friendly. It’s important to approach this choice with intention, and that means refining your boundaries and screening your potential tenants. You can do this by asking yourself pet-inclusive questions like the ones below: 

  • Do I need a size restriction? Export
  • Should I limit the number of pets in a household? 
  • Should I restrict based on breed?
  • What do I consider a responsible pet owner?

The last question is especially important, as it directly plays into the kind of tenant you allow to live in your property. You already know that you have to consider their income, credit, and previous rental history. But ask yourself – do you need them to have their pet fully vaccinated? Do they need to show proof of having the right equipment, like a leash, harness, or even toys? If they’re declaring their pet to be a service, emotional support, or therapy animal, do they have documentation to back that up?

How Zenith Properties Can Help

By now your head might be spinning with every factor you have to keep track of. If that’s the case, you’ll be glad to know that Zenith Properties NW has a way of making the process much easier for you and your tenants-to-be. We offer Screening and Management Services that allow us to find the best and most reliable tenants to occupy your properties. And our pet policy includes a pet screening, enabling our clients to rent to pet-owning tenants without putting their investments at risk. To learn more, contact us today!

Would My House Be a Good Rental?

House with a for rent sign

Investing in a rental property can be complicated, but can it also be gratifying, and profitable. There are many factors to consider, so research is vital before making any concrete decisions about whether to rent out your house. Zenith Properties NW can help you navigate the process of renting out a home you own from start to finish. Keep reading to learn the factors that determine whether your home could be a promising rental!

Rental Property Income Potential

Income potential is defined as the range of income a property has the potential to generate for the owner. It’s probably the most important element in determining whether or not renting out your home makes good financial sense. There are many variables that factor into a property’s income potential. It’s important to consider all of them to accurately calculate the home’s PIP. Here are some of the most important factors:

The Neighborhood

The only thing more important than your rental property itself is the area and community that surrounds it. The neighborhood where your rental property is located is one of the biggest factors in the potential rental price and the type of tenants you can attract. For long-term tenants, the ideal area has low crime rates, quality nearby schools, employment opportunities and many other amenities. And different tenants have different priorities in mind.

A student is more likely to want a short-term, furnished rental while caring less about the quality of the property. Families, on the other hand, are usually looking for a place they can stay in for an extended period of time.

Future Growth & Development

The future development near your property is another big factor in the desirability of your rental. If there are one or more large construction projects going on nearby, that’s a good sign that the area is experiencing healthy growth. Increased commercial development nearby can mean more amenities and/or jobs which can increase property values nearby. You may think that increased residential development means downward pressure on housing prices in the area. However, the cost of building housing today is substantially higher than 10 or 20 years ago. The further back you purchased your home, the greater the difference, i.e. potential profit, between your mortgage payment and prevailing rents in the area.

Nearby Amenities

Your future tenants will want a home that’s near the kinds of amenities that appeal to them. It helps here to know your neighborhood and everything that it has to offer. You likely already know where the essentials like gas stations or grocery stores are, but to know the base of potential tenants you should familiarize yourself with the various types of amenities nearby.

Students may want to know about the closest libraries, families, the nearest parks, and everyone will likely appreciate living near some quality dining options. Where is the nearest coffeehouse? What about state parks or recreation areas?

Weather/Natural Disasters

It’s also good to understand the potential natural disasters that could strike the region where your property is located. This can be earthquakes, tornados or hurricanes – all “Acts of God” that (along with flooding) likely won’t be covered by your homeowner’s insurance.

Experts in Rental Property Management

It can be intimidating renting out a home for the first time but it doesn’t have to be! If you have the insights of an experienced property manager guiding you, you can move forward with confidence. Zenith Properties NW is Clark County’s premier property management company. We’re staffed by professionals with years of experience helping homeowners like you turn their property into housing that’s needed in the community while providing a steady stream of income for you.

We’ve served the Clark County area for over thirty years. If you’re ready to explore renting out a home you own, contact us today to get started!

How a Property Manager Can Save You Money

Image of a property manager in Vancouver WA - Zenith Properties NW

Managing a rental can be a challenging job. From screening prospective tenants to performing upkeep and repairs, a lot goes into maintaining your property and keeping your renters happy. Fortunately, you don’t have to handle it all alone! An experienced property manager can take some stress off of your daily life while also increasing your profits. Here are just a few of the ways a property manager can save you money and time:

Reduced Vacancies

A great property manager can reduce your vacancies and ensure that your rental is always performing at its best. From great marketing to a streamlined application process, property managers have the resources necessary to fill your units with great tenants. Most management companies also do not charge for vacancies, so you wouldn’t have to worry about paying for empty units.

Savings on Maintenance and Repairs

Maintenance and repairs make up a significant portion of your expenses as a property owner, so savings here can really add up. That’s why many property managers have deals and discounts with regular service providers. Some even have an in-house staff to perform fast and effective service at lower prices. These special deals will not only save you money, but they’ll also ensure your property is always in great shape and that your tenants are taken care of.

Lower Turnover

Experienced property managers know how to build long and positive relationships with their tenants. By responding to problems in a quick and helpful manner, they can keep renters happy and reduce turnover rates. This will save time and money on the tenant placement process while keeping your rental performing as well as possible.

Avoiding Legal Disputes

It can be difficult to navigate all of the legal rights and responsibilities of landlords and tenants, which could lead to disputes. Even if you are triumphant in court, legal issues can cost a significant amount of time and money to resolve. Thankfully, property managers have extensive experience with local real estate laws, and they are prepared to help you avoid legal conflicts in the first place.

Timely Rent Payments

Rent collection can be a real challenge for property owners, especially if tenants are consistently failing to make payments on time. However, an experienced property manager will know how to handle the situation in the best way possible. If tenants continue to miss their payments, a property manager can also initiate and handle the eviction process.

Experienced Property Managers in Vancouver WA

Maintaining your rental and keeping your tenants happy is a full-time job, which is why an experienced property manager can be so helpful. If you are in need of great property management services in Clark County WA, you can count on the experts at Zenith Properties NW! We are proud to offer exceptional services that will make your daily life easier while saving you money and keeping your property thriving. With over 30 years of experience in local real estate, our skilled team is prepared to meet all of your needs – just give us a call today to get started!

What’s the difference between a second home and an investment property?

A vacation home on the coast - Zenith Properties NW in Clark County WA

Having a second home to travel out to for vacations is a luxury that many of us work hard to attain. However, if you decide to rent out your second home during the parts of the year when you aren’t there, can you still call it a second home? The differences between the terms “second home” and “investment property” are more than semantic; they each carry different financial implications and are assessed separately by the IRS. If you’re wondering about the difference between second homes and investment properties, read on to learn more from our team at Zenith Properties NW!

Second Home vs Investment Property: What’s the Difference?

The first difference between these two types of properties is the risk factor in investing that bank lenders see, both on their end and your end. If they know that you are interested in a property for the sake of having a vacation home for your family, you should expect the same interest rates and income requirements as if you were purchasing a permanent home.

However, investment properties have many extra insurance requirements and local regulations to abide by. Additionally, there is not the same guaranteed usage as there is with a second home, making it a riskier venture for both the renter and the lender. For these reasons, you can expect larger down payments and higher interest rates when setting up an investment property mortgage.

Second Homes, Investment Properties, and Taxes

The IRS has strict definitions of the differences between these two types of properties that you must abide by for tax purposes. By definition, a second home must be lived in for at least 14 days a year and 10% of the days you rent it. If you live in your second home for two weeks but rent it out for 200 days, you will not have lived in it for 10% of the days that you rented it (20 days), thereby causing it to be classified as an investment property.

The reason for these distinctions comes in the way they affect your taxes: second homes are eligible for the coveted mortgage interest tax deduction, while investment properties have other benefits, such as being able to deduct your mortgage interest from your rental income as a straightforward expense.

Learn more about Second Homes vs Investment Properties with Zenith Properties NW

There is a lot to know about the distinctions between these two types of properties if you’re looking to make an investment of either kind, so if you have any further questions, don’t hesitate to reach out to our team at Zenith Properties NW. We want to help you make smart investment decisions and enjoy the benefits of your next property however you see fit!