Smoking, Parking, Packages, Storage, and Pets in Rental Properties
Establish clear guidelines for smoking, parking, packages, storage, and pets to protect your property and maintain a harmonious living environment for all tenants.
Managing Operational Complexity for Common Amenities and Services
Renting out properties involves more than signing leases and collecting rent. Tenants increasingly want more from where they live including non-smoking policies, parking, package handling, storage, and pet friendliness. While managing all these offerings and more is necessary for minimizing liability, savvy landlords also recognize them as opportunities to enhance tenant satisfaction and increase rental value. In this article, we identify and explore some of the key considerations for related service offerings and policy choices.
Smoking Policies
Parking Policies
Package Policies
Storage Policies
Pet Policies
Smoking Policies
Smoking on a property can cause significant damage, including fire risks, paint damage, and health issues from smoke residue. Beyond damage and risk, resolving odor complaints can be especially difficult for on-site staff and particularly irritating for impacted neighbors. Implementing a clear smoking policy can mitigate these risks in several ways, but each approach carries its own practical and legal considerations. Some options to consider:
Smoke-Free Policy
Prohibit smoking entirely on the property to avoid attracting smokers and reduce associated risks. Because smoking is not a protected class, applicants can even be screened out prior to occupancy.
Designated Smoking Areas
Restricting smoking to specific, designated, areas can help balance tenant preferences and property protection. Providing amenities such as rain coverings, butt disposal, and seating can encourage use of these areas.
Smoke-Friendly Policy
An extreme approach is to permit smoking in units and openly disclose this to incoming residents. This approach mitigates many of the issues of smoking by reducing the potential for conflict between smokers and nonsmokers. However, allowing smoking unusual and presents significant compliance complexities, such as providing a smoke-free environment for employees.
Assigned Parking Spaces
Establish a fair system for allocating parking to tenants. For example, spaces immediately in front of units may be included.
Reserved Parking Spaces
Charging more for reserved parking spaces can help avoid some tensions introduced by assigned parking systems by allowing tenants to opt in for specific spaces they value more.
Guest Parking
Some shared spaces help everyone at the property. Consider reserving space for guests, vendors, and other temporary visitors. A sign-up system for permits to use these spaces can also help.
Maintenance Responsibilities
Outline who is responsible for maintaining the parking areas to avoid future disputes.
Enforcement and Towing Policy
Partner with a reputable, licensed, and insured tow operator, this relationship should include a contract establishing clear towing procedures and financial responsibilities. It is also important to make sure sign requirements are met, and consider a tracking system for vehicle registrations, passes, and prior warnings.
Parking Policies
Well-managed parking boosts property appeal and rental value, but developers often minimize it to maximize rentable space. The growing use of electric vehicles (EVs) further increases demand for parking and charging. These challenges can be addressed through lease agreements, policies, signage, and capital improvements. Key things to consider include
Package Policies
The rise of online shopping has increased the need for effective package management, especially in multi-unit properties. Implementing a clear, practical package policy can reduce disputes, mitigate liability, and improve tenant satisfaction. Consider the following:
Package Acceptance Rules
Outline clear instructions for package delivery locations and procedures.
Don't Forget the Carriers
Ensure preferred delivery methods are consistently and readily usable by delivery persons. Plan for nights, weekends, and holidays.
Consider Automated Lockers
Installing automated lockers and ensuring tenants, carriers, and on-site staff are supported in their use can be a great solution.
Abandoned Package Policies
Unattended or misdelivered packages create opportunities for theft, as most parcel thefts are crimes of opportunity. To mitigate this risk, lease agreements should include clear policy language outlining tenant responsibilities for package delivery, retrieval, and liability.
Delivery Authorization
For properties with on-site staff that do not have a mail room, a simple way for residents to request and authorize secure deliveries to their unit can be a great way of mitigating risk while offering a valuable service.
Licensing
Offer storage licenses separate from the lease agreement to increase flexibility for all parties.
Storage Policies and Rules
Clearly define storage terms, including responsibilities and liabilities, to avoid disputes and encourage responsible use.
Locks
Requiring storage units to always be locked can help reduce crimes of opportunity and related complaints. Consider supplying locks and incorporating related lease language. Storage areas should also be regularly inspected with building-controlled locks being installed on unlocked units.
Abandoned Property
Items will inevitably be abandoned. Prepare and adopt a compliant plan for properly handling these situations in advance.
Storage Policies
Providing storage spaces can enhance property appeal and profitability. Separating storage rental from unit rental can offer tenants flexibility. Proper management of these spaces is crucial to prevent disputes and ensure security. Key considerations include:
Pet Policies
With pet ownership on the rise, pet-friendly rentals are likewise becoming more desirable. Permitting, or even embracing, pets can help landlords attract tenants, resulting in higher rents and satisfaction levels. However, animals also introduce risks and operational hurdles. Consider the following:
Improvements
Minimize carpet to reduce damage and make cleaning easier. Provide waste bins and dedicated walking areas for dogs. Provide clear instructions for safe and sanitary disposal of other pet waste.
Partnership
Partner with local pet service providers to attract tenants and add value. Examples include boarders, groomers, dog walkers, vets, and pet stores.
Higher Rents vs. Tenure
Pet-friendly rentals can command higher rents, but the bigger profit maker is longer tenant tenure. It is more difficult for pet owners to move, making their tenancies “stickier,” this is doubly true where they value the amenities and services offered for their pets.
Pet Charges
Stay informed about legal limits on pet-related fees and deposits. Where applicable, consider lower, variable pet charges that cover costs while embedding profit realization in higher rents and reduces turnover.
Animal Policies
Adopt and incorporate clear policies into every lease, including application criteria, insurance requirements, and rules for guest pets. Then, even when there is an unauthorized pet or reasonable accommodation, the landlord’s ordinary rules still apply, and the tenant will have been on notice.
Animal Screening
Assess animals' behavior, weight, and breed to ensure compatibility with the property, insurance terms, and compliance with local laws. Many pet care professionals offer this service. Consider partnering with a local trainer or boarder to offer the referral as part of an application process.
Reasonable Accommodation
It can help to think of emotional support and service animals as medical equipment, like a wheelchair—So long as there is no undue financial hardship or unreasonable risk to health or safety, landlords must accommodate the animal. For this reason, waving pet charges almost universally reasonable, however, other screening, administrative, and safety related policies may still apply and should be evaluated separately.
Disclaimer
This article is provided for informational, educational, and marketing purposes only and does not constitute legal advice. The content is current as of its publication or last review and may not reflect the latest legal developments. Do not rely solely on this information—consult a qualified attorney regarding your specific situation.
Secure Your Interests as a Landlord with Cascade Counsel
Cascade Counsel helps you navigate property rental challenges with expert guidance on tenant management and policy development. Our goal is to protect your property while maximizing its value for both landlords and tenants. By focusing on value and risk reduction, we help ensure long-term property success by also focusing on value create and not just risk reduction.
Schedule a consultation with Cascade Counsel today to address the issues you face with tenant behaviors, safeguard your property investment, and explore other value-add opportunities!
