Calendar icon December 20, 2023

Pet Screening 101: How Top Property Managers Do It

Pet screening: it’s a big part of a property manager’s responsibilities, but – as any PM will say – it can also be a major headache.

More residents have pets now than ever before. According to the 2023-2024 American Pet Products Association’s (APPA) National Pet Owner Survey, 66% of U.S. households own a pet.

That means property managers are dealing with pets more often than not. On the flip side, investor clients may be reticent to allow pets on their properties.

The result? It can be tough to fill vacancies in properties where pets aren’t allowed or the screening standards are too restrictive. So, how do you handle these situations? How do you push for more pet-friendly policies if you need to fill vacancies? How do you protect yourself and your investors from risk?

In this article, we’re sharing the best advice we’ve gotten about pet screening, why it’s important to do it well, the steps to a good pet screening process, and a pet screening checklist.

What is pet screening?

Pet screening is the thorough evaluation of a prospective tenant's pet before approving their lease application. Essentially, it’s a pet background check. It's not just about keeping furry friends out of your pristine property; it's about minimizing risks, following any service animal requirements and ensuring you are protected from any potential damage.

A thoughtful pet screening process allows you to delve into the true compatibility between a pet, its owner, and your rental property – and to ensure you’re prepared for any associated risks. 

A note about assistance animals: It’s important to distinguish that we’re talking about pets not assistance animals. If you’re dealing with an assistance animal, you should not have the word “pet” anywhere on the lease. This may sound odd to laypeople, but an assistance animal is legally considered a disability device, not a pet. Assistance animals include service animals, emotional support animals, etc. 

How you deal with assistance animals – both service and support – is guided by your local laws. Property managers should familiarize themselves with the Fair Housing Act, specifically the FHEO-2020-01 Assistance Animals Notice from HUD, for guidance on assistance animals. These animals are regulated through guidance by the ADA and ESA. 

But for animals that are simply there as beloved pets, you need to set up your own standards for pet screening – and understand where reasonable accommodation must be made.

 

download rental inspection checklist template

 

Why is pet screening important?

Properly setting expectations and standards for pets – and screening any new pets at the home you manage – creates a number of benefits for you, the resident, and the investor. 

Here’s why it’s so important:

Property protection

One of the primary reasons for pet screening is to protect the property from potential damage. 

Pets can sometimes cause significant wear and tear beyond the usual scope, like scratched floors, damaged fixtures, or stained carpets. By conducting a thorough pet screening, property managers can assess the risk each pet poses to the property. This process often involves checking the pet’s breed, size, temperament, and history of behavior. 

Understanding these factors helps in making informed decisions about whether to permit the pet and setting appropriate pet deposits or pet rent to cover potential damages.

Neighborhood comfort and safety

Ensuring the safety and comfort of your residents – and their impact on the neighborhood – is a top priority, and pet screening plays a crucial role in this. 

Some pets may pose a safety risk, especially if they have a history of aggression. By screening pets, property managers can prevent potentially dangerous situations, ensuring that you don’t end up having to deal with complaints or legal repercussions

Other pets may simply be a nuisance. Excessive barking in the backyard can bring noise complaints, etc.

Risk mitigation

Pet screening is a proactive measure to mitigate various risks associated with allowing pets on the property. These risks include potential legal liabilities in case of pet-related incidents, such as bites or property damage. 

Having a detailed pet policy and screening process in place can protect the property management company from legal disputes and financial losses. Moreover, it ensures that pet owners are responsible and aware of their obligations, which include taking care of their pets.

Incorporating a comprehensive pet screening process not only safeguards the physical property but also contributes to the overall well-being and safety of the home, neighbors, etc.

How to conduct a pet screening

According to Victoria Cowart, Director of Education and Outreach at PetScreening.com, the most important factor in your pet screening process is consistency. 

“The best policies are the ones consistently applied,” Cowart says. “That’s the greatest challenge I see in the industry.”

Here are the steps to a successful pet screening process.

1. Document all pet rules and regulations

Start with establishing the rules on your properties. Remember, you should be consistent in how those rules are applied across all of your portfolio, so don't make a rule unless you’re willing to enforce it equally. 

Make sure that all prospective residents are clear on the rules, restrictions, and fees associated with pet ownership. Do you charge a pet fee like a pet deposit fee? Make that clear from the start.

2. Have the right tools at your disposal

While the pet screening process is very precise and should be taken seriously, you can also use tools and third-party services to help make it easier. PetScreening.com is one pet screening service that supports property managers in pet screening. 

Instead of leaving you with all the decisions to make, Pet Screening does it all for you. They have an in-depth questionnaire and screening process. In the end, they provide you with a FIDO score that assesses everything you need to know about the pet.

3. Provide a pet screening application

For any prospective residents who are pet owners, the next step is to have them start the application process. This is the key part of the pet screening process. 

When outlining the content of your pet screening application, Cowart says to focus on two pillars: liability and responsibility. Liability will focus on the animal’s history. Responsibility is more like a “tenant screening” that will focus on the owner’s habits. 

“You need to know how much the resident is doing to ensure their pet doesn’t have an adverse impact on the rental and on the community,” says Cowart. “Are they picking up after their animal? Do they walk them on a leash? Do they take them to the vet regularly?”  

The application should include pet profile details like:

  • Age
  • Height and weight
  • Breed/type of pet
  • Medical history
  • Spayed/Neutered
  • Length of ownership
  • Housetraining status
  • History of obedience training
  • Behavioral issues
  • Vaccination status (and proof of vaccination)
  • Previous history of aggression
  • Veterinarian information

(See our full checklist below for more.)

Many property managers focus on breed restrictions, but the evidence shows that breed is less of a factor in a pet’s behavior than you might think. The animal’s history and the owner’s behavior are more important to look for red flags of whether a dog is aggressive or not. Breed or weight questions should always include greater context.

4. Conduct a pet interview

Not all property managers will feel the need to do this. However, having a member of your team meet the animal in person may be something your investor-clients want or that you feel helps establish a better relationship and limit liability. 

This is also more common in apartment complexes or multifamily housing. For single-family property managers, the pet interview isn’t necessarily as important. 

However, if you do conduct a pet interview, it’s important to confirm that the pet you’re meeting matches the description in the application. Pay attention to how well it listens, how it approaches you, and whether it shows any signs of aggression.

5. Ensure you are complying with all laws

Before approving or denying a pet, do a final check to make sure you’re following all local, state, and federal laws. This is most important when considering assistance animals. Even homes with a no-pet policy will often need to accept assistance animals.

6. Include pet rules in the lease

You should have a pet addendum ready for your lease signing. Walk the new residents through these. They shouldn’t be surprised by anything if you follow Step 1 and are clear with them on rules and fees from the beginning. If you require a pet security deposit, that should be given at this time as well.

7. Make sure pets are covered through insurance

A big reason people deny pets is because they feel unsure about the risks and they don’t have a way of addressing them. That’s what insurance is for, but here’s the rub: A lot of pet owner policies exclude a lot of breeds, which can limit the number of residents you can approve at your properties. 

At Second Nature, we provide a renter’s insurance program that covers dog bits for all dog breeds. It’s one of the few programs on the market that doesn’t include breed restrictions. Second Nature’s renter’s insurance program (a part of our Resident Benefits Package) covers all breeds that the property manager approves. 

What are the benefits? Residents with household pets have stronger lease retention than residents without pets as a group. Furthermore, residents with aggressive breed dogs have a higher lease retention than residents in general. Fewer properties are available to those residents because most people are saying no to their pets.

You can be the one who says yes – and gets a happier resident who wants to stay longer and be a responsible pet owner. With the right coverage, you can:

  • allow more residents to apply
  • reduce vacancy costs
  • fill homes faster
  • have a stronger lease retention over time
  • increase opportunities for ancillary revenue. 

It’s a win for the pet owner, a win for you, and a win for your clients.

 

Happier residents

 

Pet screening checklist

Here’s a brief checklist to help you keep track of what you need to know about pets. Share this with prospective residents to help them prepare what they’ll need.

  • Pet Resume:
    • Include your pet’s breed, age, weight, and a brief description of their temperament.
    • Mention any training your pet has received, especially obedience or socialization training.
  • Vaccination and Health Records:
    • Provide up-to-date vaccination records.
    • Include any regular flea, tick, and worm prevention treatments.
  • Spay/Neuter Confirmation:
    • If applicable, provide documentation confirming your pet is spayed or neutered.
  • Behavioral Information:
    • Disclose any known behavioral issues and the steps you’re taking to address them.
    • Include information about your pet’s typical behavior around people and other animals.
  • References:
    • Provide references from previous landlords or neighbors, especially if you’ve lived in a rental with your pet before.
    • A letter from a veterinarian attesting to your pet’s good health and behavior can also be helpful.
  • Pet License:
    • Show proof of a current pet license, if required by local laws.
  • Pet Insurance:
    • Consider obtaining pet insurance that covers any damages your pet might cause.
    • Second Nature provides this as part of a Resident Benefits Package. Residents can opt into the coverage or provide their own. 
  • Photos of Your Pet:   
    • Include recent photographs of your pet for easy identification.
  • Agreement to Rules and Regulations:
    • Acknowledge and agree to any pet policies or rules set by the property management.

Final thoughts

Pet screening doesn’t have to be a major headache. With the right tools and a standardized process, you can make it easier on your team and easier on prospective residents. The goal, after all, is to find residents who will care well for their pet and the property – and hopefully stay for the long term.

At Second Nature, we provide extensive pet coverage in our Resident Benefits Package. The goal is to reduce liability for you and make it easier to accept good pets, regardless of their breed. Rest easy knowing you and your residents are covered.

Keep learning

Best Tenant Onboarding Software in 2024

The tenant onboarding process is an opportunity for property management companies to establish positive expectations and create an excellent resident experience. It’s one of the most opportune moments for resident education – in other words, to help them understand key responsibilities and the information they’ll need to take care of the home and their side of the lease, in tandem with investor and property manager responsibilities. It’s also a process with a number of different steps – many of which have traditionally involved cumbersome, manual processes. In today’s post, we’ll examine tools that alleviate these processes, and identify some of the top performers on the market. Note on language: "Tenant onboarding” is an industry term used from time to time. But we here at Second Nature are trying to evolve the word "tenant." We’ve seen the incredible work property managers do day in and day out to make renters feel like they’re so much more than just tenants – they’re residents. Making renters feel like residents isn’t just philosophical, it also encourages them to invest in care for their home and add value to the property. This is why, at Second Nature, we prefer to call tenants “residents.” Like you, we think of them as people first – making your property their home. What is tenant onboarding software? It’s important to dispel the notion that “tenant onboarding software” is a monolithic category of software applications. There really is no such category, as no single rental property management software will cover everything you need to address. Instead, property management companies are using disparate software tools to solve different pain points during the onboarding process. Indeed, the tenant onboarding process can present a multitude of pains for both property managers and tenants. Below are just a few examples. Cumbersome, time-consuming paperwork Filling out paper applications, manually processing documents, and chasing signatures can eat up valuable time. Communication challenges Back-and-forth messaging, calls, and emails regarding lease agreement details and payments are inefficient and can lead to misunderstandings. Data security concerns Traditional methods that use physical documents pose a risk of data insecurity or outright data breaches. Process inefficiency risks Accurately tracking onboarding tasks such as key handover, utility activation, or maintenance checks can be difficult without proper tools. Lack of transparency Uncertainty about application status or lease details can be frustrating for new tenants. Tenant onboarding software tools alleviate challenges such as these by offering features that translate into a smoother experience for everyone involved, saving time, reducing errors, and fostering better communication. Key features expected of tenant onboarding software There are several attributes that you should expect to find across tenant onboarding software tools, regardless of the specific platform or category. Here are some of the key features: User-friendly interface Clear instructions and intuitive functionality should enable property managers, potential tenants, and tenants (as well as property owners, in some cases) to use the software easily. Mobile accessibility In today's mobile-first world, the ability to access the software and complete tasks like online applications, payments, or maintenance requests on smartphones or tablets is crucial. Secure data management tools The software should ensure that all sensitive applicant and tenant PII (personally identifiable information) is stored securely with encryption and suitable access controls. This is particularly important for SaaS-based applications. Workflow automation Features like automated application processing can significantly streamline the onboarding process. Integration capabilities The ability to integrate with other onboarding tools, accounting software, or background check/tenant screening services in real time can create a more unified workflow. Reporting and analytics Property managers should be able to generate reports on application trends, rent collection rates, or tenant feedback to gain valuable insights. Customer support The onboarding software provider should offer comprehensive resources to support property managers in their usage of the software. This may include tutorials, webinars, or dedicated customer support representatives. Top Tools for Tenant Onboarding From the initial applicant screening stages through to move-in and the tenancy period, we’ll take a look at each step of the tenant onboarding process and popular tools in each category. 1. Applicant screening Property managers often use tenant screening services such as Plaid, Finicity, Pinwheel, and others to conduct rental screening and replace manual document upload and review. As identity fraud becomes more prevalent, identity verification tools are also becoming more sophisticated. Note that Second Nature’s Resident Benefits Package includes a $1 million identity protection program and credit building for tenants. These programs protect your tenants and help draw people who want to build responsible financial security. 2. Lease management Property management software solutions like AppFolio or Buildium often include features for lease creation, storage, and e-signing within their suite. Platforms such as DocuSign, PandaDoc, or Dropbox Sign enable property managers to then send lease agreements electronically for secure online signatures. Pay attention to the differing pricing models between these platforms, as they can vary substantially. 3. Rent collection and payment processing For rent collection, PMs typically require certified funds and will accept ACH/debit, or leverage a service like PayNearMe, where residents can pay cash at a local Walmart or convenience store location (while on the PM side, the process remains completely digital). Payment processing is typically handled by property management accounting software, although third-party tools like Zego are used in the SFH space. In addition, tools like EliseAI (a chatbot-type tool for use cases such as leasing, among others) are innovating in this space. 4. Move-in communication and coordination Platforms like AppFolio, Buildium, Propertyware, or Rent Manager provide a central tenant portal to access lease documents, pay rent, submit maintenance requests, and communicate with property managers. As for task management, Tools like Leadsimple, Aptly, or Monday.com can be used by property managers to track and assign move-in tasks, ensuring a smooth transition for new residents. For instance, the onboarding process may include tasks such as orientation calls and/or enrollment of the resident into ancillary products and services such as Second Nature’s Resident Benefits Package (RBP). Second Nature also includes a move-in concierge as part of its RBP. 5. Feedback/reputation management tools Tools like Grade.us, opiniion, and Birdeye can be used to gather feedback from tenants after move-in, helping property managers identify areas for improvement. The specific tools you use will depend on your requirements and processes. However, by and large, any of them can be used to transform the tenant onboarding process from a paper-heavy slog into an efficient digital experience. Final thoughts Remember, the onboarding process is the ideal mechanism for enhancing communication, establishing expectations, and creating a positive resident experience. Our top recommendation for ensuring a world-class onboarding and resident experience is to build a resident benefits program. Second Nature has pioneered the only fully managed Resident Benefits Package for single-family property managers. Learn more about resident experience management in our State of Resident Experience Report.

Calendar icon April 25, 2024

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How to Optimize Operational Frequency with Processes and Software

Property management software is currently helping property managers establish efficient and reliable processes at a higher rate than ever before in the PM industry. With that development in the proptech industry has come the development of tech for self-managers that has changed the capacity of the accidental landlord. Thus, the demand for efficiency at scale has risen in order to separate the professional from the amateur, and the establishment of processes that allow such a thing has become a critical topic for professional property managers. Optimizing property management processes Carter Fleck of Triton Property Management, a growth-oriented firm out of northern Virginia that is approaching 300 units with larger goals for 2024, joins us to share his expertise on process definition. Fleck is the General Manager responsible for operations and strategic growth, and he has been developing effective processes to ensure efficiency at Scale at Triton, and in the process, he has garnered an understanding of how to do so. “A lot of failing,” says Fleck. “In the early days, we were getting a lot of good and bad feedback, but typically the bad feedback is what you adjust off of.” Fleck believes that assumptions are the enemy when it comes to defining procedures and sourcing software for your PMC. “The image that we use is if you're going to build a sidewalk before people even start walking on a field, it's kind of dumb. You have to see where people will walk first, and then you'll build a gravel path. So number one, you see where they walk, see where their intentions are in the grass, then you build a gravel path. And then eventually, once that walkway is established, that's where you build your processes and procedures.” The analogy is a visualization of the concept that you have to see how people operate before you can establish processes to make how they operate more efficient. Fleck encourages the negative experiences of process breakdown and cites them as the only way to really nail down what your processes should look like. “Over time, between the tenants giving feedback and owners giving feedback, we adjusted our processes. It's a mix between figuring out where the owners walk and where the tenants walk, and then building paths that align.” Fleck details an example of how Triton adjusted its process after an assumption it made got challenged: "We had an assumption that payment plans were helpful for residents," says Fleck. "And so the way we handled delinquency is we would reach out to them and would be like, ‘you need to pay this. Do you have a payment plan option?’ And they would always say yes. Our process was we'll put you on a payment plan, we'll invite you to a payment plan, you'll accept the payment plan, and then we'll monitor the payment plan. That in itself was a lot of work, but we thought it was doing well. But some of the owners that we had managed for mentioned that another property manager doesn't allow any payment plans. And if you're not fully paid up by the end of the month, then the eviction process starts if you’re over $500 due. So we're like 'alright, well, we'll serve you in that we'll change our processes.' And we did, and our delinquency percentage shrunk significantly. So, consistently, by the end of every month, we're around 5% APR. Whereas with payment plans we're like 5 to 10%.” Fleck obviously credits seeing the assumptions in motion as what prompted the need for process iteration, and he firmly believes that making too many of these assumptions is one of the biggest mistakes growing property management companies make. Like any business experiencing growth, process definition is critical to achieve efficiency at larger volumes. What Fleck is essentially advocating for is processes based on what you know, not what you think, and there is a big distinction. Managing property management software Fleck has installed both general and tech-based processes, and cites that understanding of how people interact with processes as the key in both areas. "They don't focus on user experience. That's really important. Number one, how the tenants like the tech, but specifically how the people who are using the tech are gonna adopt it. So when we were choosing a rent inspection software, we had so many people recommend one, software and I, we almost pulled the trigger on it. But then I was like, let's do a trial run on both these two. And we chose the other one because it was way better user experience for property managers. So user experience, both for us and for residents." Tech is a tool that is ultimately as good as its users, and if it's not used correctly or at all, its potential is wasted. An over-reliance on technology can actually go hand-in-hand with an under-reliance, as both often spring up from a lack of understanding of how to choose, implement, and manage it. In this vein, Fleck can't recall many property managers who operate with too much tech. As long as you're not purchasing redundant software and you've done and continue to do your due diligence, tech-based process can make your business more efficient. "I more often find myself having that conversation," says Fleck. "When I'm talking to property managers in my sub-market, who aren't connected with like a NARPM, who aren't connected with like a Crane group, or who aren't connected with a Second Nature, aren't connected to the tune of what the property management industry is doing and the cutting edge of it, I'm just like, 'you could save so much of your time and you could scale this so much more if you only even if you just had tenant Turner, or if you had LeadSimple.'" No matter what your story is a property manager, if growth is in the cards, so is process and technology refinement. Hopefully, Fleck's experience in these areas can help you stay efficient and organized as door counts grow.

Calendar icon April 19, 2024

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