Flexible Policies That Drive Revenue and Retention

January 7, 2026

The high cost of missing these opportunities.

Looking for ways to boost net operating income? One way, you might say, would be by going to the dogs. Another could be characterized as meeting would-be tenants halfway.

First the dogs or cats or other animals, for that matter.

Two-thirds of U.S. households own pets–mostly dogs and cats but also fresh water fish and such small animals as hamsters and rabbits. That’s 86.9 million households, according to the Census Bureau.

There are no statistics on how many apartment properties allow pets. But if you’re not one of them, you could be missing out on a lot of business. More than two out of every five renters have passed on an apartment because the landlord didn’t allow pets, a report from Foxen says.

The report maintains that offering a pet-friendly portfolio “is no longer a negotiable—it’s a must.”

The Columbus, Ohio-based company that provides financial products to property owners, operators and residents, recently launched a technology-driven tool to streamline pet management.

Renters with pets “are more likely to lease—and renew—at pet-friendly properties,” according to housing economist & consultant Jay Parsons, who is quoted in the report. And findings from the Pet-Inclusive Housing Initiative back him up. Some 83 percent of property owners and operators say that pet-friendly vacancies are filled faster and 79 percent say they are easier to fill, says the Initiative, which is working to create more pet-inclusive rental housing options.

Moreover, data from Zillow and the Initiative indicates that pet-friendly policies can improve retention. According to Zillow, 60 percent of renters said that allowing pets was a factor that encouraged them to stay at their current rental. And the Initiative says that residents in pet-friendly communities stay 21 percent longer than those without pets.

The cost of being pet-friendly

Operating a pet-friendly community comes with additional costs and obligations, though. One source quoted in the report estimates that the additional costs of operating a pet-friendly portfolio can be as high as $1.15 million per 10,000 units.

These extra costs often stem from pet damage and deep cleaning. But maintaining pet-focused amenities like dog parks and waste stations, as well as the inevitable common-area cleanup, also add to operators’ expenses. To offset these costs, it’s important to maintain accurate records and apply charges to tenants as outlined in each lease, the report cautions.

Of course, some renters—11 percent, notes the Pet-Inclusive Housing Initiative—aren’t always forthcoming about their pets, which presents a “major risk” as well as lost pet revenue. To protect a property from damage and liability, operators “need to know about every pet,” it warns.

Mid-term rentals

Property owners may also be missing out if they don’t consider setting aside some of their units for mid-terms rentals. Less than half of the operators responding to a survey by Landing, a network for flexible-stay apartments, offer them, and they’re missing out on leases that command $600 to $800 above market rates.

We’re not talking about using completed units as hotel units during lease up. We’re talking about setting aside a percentage of apartments for full-time mid-term leases.

Landing surveyed hundreds of multifamily owners and operators and found that 44 percent currently offer mid-term rentals to some degree, with a third saying they offer them extensively. While larger properties have wider adoption, smaller projects are “actively seeking the right conditions to make mid-terms work,” the report says.

Bill Smith, Landing’s founder & CEO, called the trend “a complementary strategy” that has driven hundreds of millions in revenue to operators, without disrupting their core operations.

Four out of every five operators told pollsters that they are receiving requests for leases under nine months, the Landing survey found. The demand is being driven by a diverse group of renters, including remote workers, corporate relocations, seasonal renters, among others.