Innovative Feature Helps Rental-Housing Teams Accurately Tier Pet Fees Based Upon Risk
PetScreening, a first-of-its-kind screening platform that empowers property managers to outsource their pet risk assessment and assistance animal validation processes at no charge, has unveiled a pricing tool to accompany its trademarked FIDO Score™.
The FIDO Score is an algorithmic number that measures the housing-related risk of each pet and its owner. The 1-through-5 paw score is based upon numerous risk factors and data points, including the behavior history of the pet and its owner. The pricing tool is the next evolution of the FIDO Score, designed to assist operators in properly setting pet prices based upon the risk score.
"Most of the apartment industry currently charges a flat rate for pets regardless of any individual risk factors," said John Bradford, founder and chief executive officer for PetScreening. "For the first time, a detailed individual risk assessment on the pet and its owner can enable teams to precisely structure pet fees and rents based on household-related risk tiers as opposed to flat pricing – which can contribute directly to increased net operating income (NOI). Just as larger homes or premium parking spaces create a larger revenue stream, communities can charge more for pets that score in the higher-risk threshold compared to those that pose little or no risk."
Pets have increasingly become one of the largest sources of ancillary revenue in the rental-housing industry, yet some operators are leaving potential revenue on the table with flat fees. While restricting pets based on preexisting characteristics of the pet can be off-putting to residents and not fair in many instances (many large-breed dogs, for example, pose a low risk for damage), a detailed risk assessment offers greater context and a more accurate assessment as to why a pet and its owner land in a certain pricing tier.
Visitors to the PetScreening website can fill out a "revenue fetcher" worksheet, which allows teams to evaluate potential fee models based upon the FIDO pricing tool. The PetScreening platform is free to rental-housing operators, which ensures that any newly generated revenue goes directly to the property.
"Given that this is an asset management industry, driving revenue to the bottom line and improving property values is key for the industry," said Victoria Cowart, director of education and outreach for PetScreening. "The flat-fee model is dated and doesn't precisely reflect the complicated topic of potential pet risk at a rental property. The FIDO-based pricing structure is another intuitive way for operators to generate additional revenue while providing a pet-friendly and pet-responsible experience for all residents."