NEW ORLEANS – People love their pets and the stats back it up.

Seventy-one percent of U.S. households own a pet and 59% of renters live with their pet.

But today’s target renters are even more in love with their furry friends. Gen Z and millennials make up 68% of today’s residents, and they own 57% of the pets. In fact, 37 million millennials, 76% of the cohort, own pets, panelists said on June 18 at the National Apartment Association’s Apartmentlize conference in New Orleans.

And, it's not just single pets they love. Thirty-five percent of Americans have more than one pet and 70% of Gen Z pet owners have two or more pets, according to panelists at Apartmentalize.

These numbers have meant apartment owners and operators need to be ready for cats, dogs and even exotic pets on site.

“That's a lot of animals that we’re seeing on site,” Stephanie Thornberg, a vice president at Avenue5 Residential, said on June 18 at Apartmentalize.

Obstacles to pets

Today’s target renters may love their pets, but many apartment owners and operators aren’t welcoming them with open arms, Victoria Cowart, vice president of senior director of education and enterprise sales for PetScreening, said at Apartmentalize.

“If you’re not pet passionate, it shows,” Cowart said.

First and foremost, a reluctance around pets will show up in lack of marketing for animal owners and amenities. It can also show up in breed limitations.

Seven of 32 of the most popular breeds are the most restricted, according to Thornberg. “You’re just missing out of leasing opportunities by not removing breed restrictions,” she said.

Insurance, often slow to change, has been a hindrance in the past, but policies are becoming more accepting of formerly banned breeds, according to Thornberg. “If they [insurance] are coming around before property management, we're in a little bit of trouble,” she said.

If a property is allowing more breeds, Cowart said they need standard operating procedures around pet waste, barking and animals off leash. But that’s not all. “You need to come up with a vaccine policy and be vigilant about enforcing it,” Cowart said.

The financial benefits

Even though some breeds are banned, they often still end up at the property as emotional support animals, according to Thornberg. When they’re ESAs, residents aren’t paying fees.

By removing breed restrictions, owners are “getting out of the ‘ESA cottage industry’ and you’re shifting them over and getting revenue for that bed,” Todd Whitlow, director of legal operations and a partner at Brownlee Whitlow & Praet, PLLC said at Apartmentalize.

But that’s not the only advantage to being more open to pets on-site. Operators also can reduce turnover, lengthen occupancy duration, improve overall occupancy and increase property values, according to Cowart.

Citing a study she had seen, Cowart said pet friendly policies can lengthen a resident stay 27% — from 27.5 to 33 months. “At an average rate of about $1,800 a month's rent, you're boosting the value of per stay — because I always like to calculate that — by almost $10,000 and you're pushing off that many pet turns a year,” she said.

Pets can improve occupancy by 4% and help operators rent 10 days faster, according to Cowart. While that number might feel low, it can have a dramatic impact across an entire portfolio. On a 200-unit asset, it could mean $600 per move-in.

“Think about the math on that,” Cowart said. “Every time you boost something $600, you boost your property value $12,000 at a five [percent] cap [rate].”