The COVID-19 pandemic created unprecedented challenges with lease renewals for the apartment industry. One of the lasting impacts will be the pausing of renewal rate increases.

Recent data from Entrata indicates that renewals have been on a trending decline. As of July 8, renewal have slowed to 44% down 14 percent year over year and 11 percent since May. 

With renewal rates declining, now is the time for apartment operators to look for new ways to deploy innovative renewal offers. One innovative technique forward-thinking operators are implementing is easing pet restrictions. 

On the surface, this change might seem minor. But, easing pet restrictions can have a big impact on demand for apartment housing. As more residents are looking for pets to give them company while spending more time at home, they’re also looking for pet-friendly housing for whatever pet they want to adopt.

According to research from the Pet Inclusive Housing Initiative, a research and resource development initiative that promotes access to the joy of pets, residents in pet-friendly units stay 21% longer versus non-pet friendly units. With the far-reaching impacts of the pandemic, more residents are submitting assistance animal accommodation requests for emotional support animals. By reducing pet restrictions, residents know the pet they adopt can live at the apartment without special designations. And most studies show they’re willing to pay pet deposits and rent. 

But reducing pet restrictions isn’t the only innovative way to leverage your pet-friendly community to improve renewal rates. There are several more:

Communicate Pet Policies 

When sending out renewal letters, highlight the terms of the lease that include pets. In the process, consider waiving pet rent for one month for signing a renewal to entice them to sign an offer that might be more lucrative for the operator in the long run. In addition, operators could consider providing pet rent relief for those impacted by the COVID-19 Pandemic. 

Communicating pet policies also fosters a safe and responsible environment for pets and their owners. By posting signs about noise, reminding owners of their responsibility to pick up after their pet and the community leash policy, all residents will feel more comfortable living at a pet inclusive community.

Reinforcing these policies might also allow residents to come forward with new pets that they did not have at the time of the lease signing.

Welcome New Pet Residents 

Another way to build community and increase attachment among pet owners is to properly welcome any new pet residents to your community. Apartment managers can announce and introduce new pets on social media sites or in a community newsletter. You can also throw pet-welcome parties or adoption events via Zoom or in-person when the pandemic is over. 

With the trend in renewals decreasing month over month and year over year, now is the time to dial into renewal best practices and look for ways to increase renewal rates. By creating a more welcoming environment for pets at apartment communities, owner/operators pave the way for increased renewal rates, lower exposure and decreased vacancy loss.