Landlords Who Welcome Pets Make More Money—Here’s Why

Think allowing pets in your rental is a risk?

You might be missing out on one of the biggest opportunities in today’s market.

While the thought of four-legged tenants might initially spark concerns about scratched floors or chewed corners, the reality is that allowing pets can offer significant benefits for landlords—both financially and relationally.

In fact, saying “yes” to pets could be a smart move, especially when considering the state-specific regulations around pets in rentals.

The growing demand for pet-friendly rentals

Pets are part of the family for millions of Australians.

With over 69% of households owning a pet, the demand for pet-friendly rentals has never been higher.

Unfortunately, pet-owning tenants often struggle to find suitable housing, which narrows their options and makes them more likely to stay long-term in a property that welcomes their furry friends.

By allowing pets, you’re tapping into a market segment that is often overlooked but extremely loyal.

I’ve found that pet owners are more likely to treat your property with care, knowing that their ability to house their beloved pets is at stake.

Legal framework: state-by-state considerations

Australia has seen a shift in laws surrounding pets in rental properties, with most states moving toward more tenant-friendly regulations.

Here’s a quick snapshot of the rules:

Victoria: Renters must seek written consent from landlords to keep pets. Landlords can only refuse with approval from the Victorian Civil and Administrative Tribunal (VCAT), providing a reasonable basis for denial.  Consumer Affairs Victoria

New South Wales: No specific laws mandate landlord consent for pets; however, standard lease agreements often include clauses requiring there is a tenant to have the landlord's permission to have a pet on the property. Landlords can refuse pet requests without providing a reason unless it's an assistance animal. NSW Govt

Queensland: Tenants must obtain written approval to keep pets. Landlords can only refuse on reasonable grounds, such as property suitability or body corporate by-laws. They must respond within 14 days; otherwise, consent is implied.  RTA Queensland

South Australia: Tenants need landlord approval to keep pets. Landlords must respond to pet requests within 14 days, stating reasons for refusal or conditions for approval. South Australia Government

Western Australia: Tenants must seek permission from their landlord to keep pets. Landlords can charge a pet bond, capped at $260, to cover potential damages.  WA Consumers

Tasmania: Tenants can only keep pets with landlord consent or if specified in the lease agreement. Pet bonds are not permitted.

Australian Capital Territory: A lessor may put conditions on their consent to keep a pet, and apply to ACAT for prior approval of those conditions.

A lessor does not need ACAT’s approval if the condition is reasonable, such as the number of animals that may be kept on the property or the expected cleanliness or maintenance of the property.

If a tenant disagrees with the lessor’s conditions, the tenant can apply to ACAT to resolve the dispute. ACAT

Northern Territory: Tenants must notify landlords in writing of their intention to keep a pet. If the landlord doesn't object within 14 days, consent is implied. Pet bonds are not allowed.

Why allowing pets makes financial sense

1. Reduced vacancy rates: Pet-friendly properties are snapped up faster. Tenants with pets often have fewer options, so your property becomes a sought-after gem.
2. Higher rents: Data shows that tenants are willing to pay a premium for pet-friendly properties. This extra income can easily offset minor wear and tear caused by pets.
3. Longer tenancies: Pet owners are less likely to move frequently because finding pet-friendly rentals is challenging. Stable tenancies mean fewer turnover costs for landlords.
4. Pet bonds provide security: In states like WA, where pet bonds are allowed, landlords have an extra financial buffer for any potential damages.

Addressing common concerns

Of course, it’s natural to worry about the potential downsides of allowing pets, such as property damage or noise complaints.

But many of these concerns can be mitigated with thoughtful policies:

• Set conditions: Specify the type, size, or number of pets allowed in the lease agreement. For example, you might permit cats or small dogs but not larger breeds.
• Conduct regular inspections: Routine inspections by your property manager should ensure that your tenants are maintaining the property responsibly.
• Request references: Ask for references from previous landlords regarding the pet's behaviour.

Remember, the majority of pet owners are responsible and keen to maintain a good relationship with their landlord.

A win-win for everyone

Embracing pets in your rental property isn’t just a tenant-friendly move—it’s good business.

It widens your pool of potential tenants, reduces vacancies, and fosters loyalty.

Plus, in states like Victoria and Queensland, the laws already lean toward encouraging pet ownership in rentals, so being proactive can position you as a progressive, tenant-friendly landlord.

By considering the unique benefits and implementing clear guidelines, landlords can create a pet-friendly policy that works for everyone involved—human and animal alike. So why not take the leap?

You might find that opening your doors to pets also opens doors to higher returns and happier tenants.

About Leanne Jopson Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients.