Renting to pet owners in the private rental sector: A cost-benefit analysis

Abstract

Pet ownership, or animal companionship, is increasingly found to be beneficial to mental and physical well-being. Despite this, housing situations and tenure, such as living in a private rental, can impact the ability to realise these benefits. This paper examines the financial implications for private landlords when renting to pet-owning tenants in the UK. We conduct a rapid evidence assessment to identify costs and benefits associated with pet-friendly renting. Drawing on this framework, we use two cross-sectional surveys of private landlords (<i.>n</i> = 2,115) and private renters (<i.>n</i> = 1,016) to quantify key costs parameters (e.g., pet-related damage) and benefit parameters (e.g., longer tenancies). These empirical estimates are used to parameterise a cost-benefit analysis model from the landlords’ perspective over a 12-year holding period. We find that pet-friendly rental policies can yield a positive net present value, benefiting landlords financially over the long term. Moreover, evidence suggests that pets can improve tenant well-being and community connections, potentially fostering positive landlord-tenant relationships. Our sensitivity analysis indicates that the financial viability of renting to pet owners is robust across various scenarios. Overall, the findings aim to inform policymakers and, crucially, landlords about the social and financial benefits of supporting pet ownership in the private rented sector.