Determining the difference between pet-friendly and pet-inclusive.

For many Americans, pets have become a large part of our lifestyle and identity. According to Forbes, 66% of U.S. households own a pet, and more than 97% of those households consider their pet to be a member of their family. As the importance of pet ownership continues to increase, businesses are adapting to cater to the growing demand, younger adults are choosing to adopt a pet before buying a home or having kids and some are choosing to forgo having children altogether in favor of being a pet parent. 

While some industries are taking advantage of this opportunity to enter the pet economy, the rental housing industry continues to be divided on the topic. Some providers have taken pride in their pet-inclusivity by developing designated areas for pet relief and play, removing restrictions on breed or size or displaying a pet resident of the month in common areas. But many companies still place restrictions on certain pets and require high pet rent or pet deposits, missing out on the opportunity to make their properties available to a wider swath of renters. Even if a rental community is considered pet-friendly, it doesn't necessarily mean they’re pet-inclusive. Pet-inclusive housing provides an open and welcome environment for all pets, while pet-friendly housing can still place significant restrictions on breeds or size of pets, and may require additional pet fees.

The growing demand for pet-inclusive housing

Popular internet listing services (ILSs) have added pet-friendly search filters allowing people to sift through rental listings that fit their criteria, such as accepting cats or specific dog sizes. These platforms also share data and information aimed at identifying cities that have the most dog-friendly rentals, with Zillow reporting many cities in Texas at the top of the list. The Pet-Inclusive Housing Report from Michelson Found Animals and HABRI found that 63% of renters have “pet-friendliness” on their housing criteria checklist, and these renters are more likely to compromise on budget and location than they are on their pet. Additionally, a recent survey of home renters published by Point2Homes emphasizes that pet-accommodating policies are among the top reasons for renting a single-family home rather than an apartment.

Despite growing consumer demand, most residents report that finding housing that accepts their pets has become increasingly difficult. With the biggest renter demographics (Millennials and Generation Z) also making up the largest percentage of pet owners, it’s impossible for rental housing providers to not consider the impact pets have on their properties and communities; however, there are still misconceptions when it comes to pets in housing.  

There is little, if any, difference in damage between renters with and without pets

While some rental housing providers have an unsubstantiated belief that all pets will create significant damage to their property, studies have found there is little, if any difference, in damage between residents with and without pets. Only 9% of pets are reported to cause damage of any kind, and the average damages are only $210, which is significantly less than most standard security deposits; and the vast majority of pet owners choose to repair this damage rather than to lose a portion of their deposit. 

Pets help foster trust, relationships and community

Rental housing providers that have shifted to more pet-inclusive policies have seen the value in their portfolio. In a National Apartment Association webinar with Pegasus Residential and Oculus Realty, both companies described a positive impact on the resident community and the manager/resident relationship when they adopted more pet-inclusive housing measures. 

Renters with pets also have a lower turnover rate, staying an average of 21% longer than non-pet-owning residents, and 83% of owners and operators say pet-friendly vacancies are filled faster, minimizing the ongoing cost of vacancies and the labor and marketing expense required to refill those vacancies. 

Pet-inclusive communities are stronger and more economically vibrant

The pet industry is expected to grow to $500 billion by 2030, which not only impacts the global and national economy but local economies as well. A study by PetSmart Charities and economics firm Goss and Associates found that pet-friendly cities increase consumer and business spending on pet products and services within those cities, contributing to local economic growth and GDP. Pets also have a positive impact on health and individual productivity, which is shown to boost job performance and add to wage growth and spending. 

The acknowledgment that pet-friendly cities are more economically vibrant and have higher qualities of life drove the U.S. Congress of Mayors to take an unprecedented step of adopting an initiative in partnership with Mars Petcare to encourage cities throughout the U.S. to adopt pet-friendly policies.

The ripple effect

In addition to the benefits that pet-inclusive housing has for renters, providers and communities, there’s also a direct correlation to the welfare of pets and the capacity of shelters and rescues that often feel the brunt of restrictive housing policies that force families to make the heartbreaking decision to surrender their pets. Animal shelters across the country are struggling with overcrowding, and housing instability is one of the main reasons that households choose to surrender their pets. With 6.5 million dogs and cats entering animal shelters last year and only 4.8 million animals adopted, shelters are working overtime to find loving homes for the animals in their care; but lack of access to pet-inclusive housing and affordable veterinary care are forcing families to make the difficult choice to part with their pets and preventing families from adopting new pets.  

The ASPCA and Michelson Center for Public Policy are working with lawmakers across the country to address the underlying concerns about pet-related damage and onsite liability that lead many rental housing providers to prohibit pets or charge additional costs for pets.

As owners and operators determine how to adapt to the growing consumer demand for pet-inclusive housing, there is one immediate action that they can take to protect their real estate assets. Each rental agreement should include a lease addendum that clearly lays out management’s expectations when residents have a pet onsite, whether it is a pet of the resident or a visiting pet. A strong pet policy will explicitly require a renter to agree to the terms of the pet policy that specifies the care and maintenance of pets in the interior of their home, as well as in any common areas. The consistent and balanced enforcement of these policies can reduce liability and ensure that residents are fully aware of their responsibilities to help make properties safer for people and companion animals. 

By opening up rental housing to pets, portfolios and operations can be positively impacted, fostering community among residents and a bolstered local economy. At the same time, families can stay together, enabling renters to adopt or foster a pet—an impact that ripples throughout shelters nationwide to create space for more animals in need. Collaboration between the housing industry and animal welfare organizations is critical to creating more humane, compassionate communities.

Susan Riggs is Senior Director of Housing Policy for the ASPCA, and Judy Bellack is Multifamily Industry Principal for Michelson Found Animals Foundation.