The Economics of Pets in Housing, Hotels & Travel

Eddie0:00 So most property owners think pets are just a policy issue. In reality, they're an operations issue, a risk issue and a revenue issue. Today, we're going to unpack what's really happening behind the scenes, and joining me to do that is Luis Zamora, head of client success at PetsVivo. Luis works directly with property owners and operators dealing with this every day. Luis, welcome. When people hear pets in housing or hotels, they usually think of restrictions, but you approach this as a much bigger economic and operational issue. What does that mean?

Luis0:43 Thanks, Eddie. I'm really happy to be here. If there's an opportunity to talk about pets and animals, I always take it up. I have two dogs myself. How we got here: in 2010 pets made up about 50% of U.S. households. Right now it's at 70%. There's been this huge cultural shift toward pets being viewed as family members, and housing and hospitality have not caught up. As an individual with two dogs who would not be allowed in 75% of housing units and most hotels, I saw a real gap, and asked how I could use my background in technology and early startups to find a tech and human solution, so operators and owners can benefit from this pet revolution.

Eddie2:08 There's no mistaking that it's much harder to raise a family, so for a lot of people the family starts with pets. I've seen that increase from a real estate perspective. The amount of money and care given toward our pets today is just incredible.

Luis2:41 Exactly. Right now 98% of pet owners consider their pets a family member. When you try to find an apartment or a hotel and they don't consider that family member, do you really want to spend money there, or stay for 12 months there? At PetsVivo we make owners and operators aware of this cultural shift and the economic impact of restricting pets, and the actual costs associated with having them.

Eddie3:39 What are operators underestimating right now when it comes to pets?

Luis3:50 The biggest one is the costs. We work with a nonprofit called the Pet Inclusive Housing Initiative. Only 9% of pets cause any kind of damage, and that damage accumulates to roughly $200 over a 12-month lease. Yet housing units charge $300 to $500 annually to have that pet there. When you look at the actual cost, it's not adding up. We take a carrot approach instead of a stick approach: loosen the restrictions, allow as many pets as possible, because pet parents spend almost twice as much, stay about one and a half times longer, and only cause around $200 of damage if any. It's a win for residents, owners, and operators.

Eddie6:08 So the system has existed fear-based. Has that been justified?

Luis6:19 When you have a lot of animals in a small space, there can be issues, which is why people should be educated and prepared. The average insurance payout for a bite is around $20,000. Insurance programs put in breed and weight restrictions because of that data, but on a master policy a $20,000 claim isn't much and just raises premiums. We worked with insurers and operators to create bespoke plans that protect for that specific incident without breed or weight restrictions. Have sound policies and SOPs in case something happens, but the metrics show it rarely does.

Eddie8:14 I'm an owner watching my net operating income. How is this affecting me, and where is it hurting me?

Luis8:35 Let me break it down between housing and hotels. On housing, owners charge a $300–$500 non-refundable pet fee plus a similar refundable deposit. We ask: do you want that fee, or would you rather fill vacant units? Vacant units cost $1,800 to $2,500 sitting empty, plus turnover costs of $3,000 to $7,000. If you loosen or remove pet fees, that line item goes down, but if occupancy goes up and turnover stays low, your NOI still rises. Plus pet brands and service providers want to tap into your market. Pet parents in housing stay 21% longer. On the hotel side it's a new market: in 2005 about 7% of hotels allowed pets; now it's around 70–72%, but they don't know how to price it. Pet travelers tend to fall in the top 5–10% of income, and travel with pets has grown from 2 million to 25 million. Pet owners are extremely loyal, so an exceptional experience brings them back.

Eddie13:05 It strikes me as a missed opportunity that's really education-based. Removing the friction creates brand loyalty. If I had a nice experience with my dog, I'll go right back to that brand because there's no friction.

Luis14:28 Exactly. Before, owners had to go to six or seven different places to get insurance, benefits, and partnerships — a huge time suck — so they put in restrictions to protect themselves. On the pet parent side there's friction across housing and hotels that almost disincentivizes traveling with your pet. The goal is to remove the friction, make it easy, smart, and profitable, so everyone wins.

Eddie15:56 Is this a systems problem? Is it terribly difficult to implement?

Luis16:03 It is a systems problem. The systems of the last 20 years weren't looking out for the pet parent and were extremely risk averse. Imagine having four systems just to manage pets — operators already have water usage, fires, parking, and more on their plate. Finding one system, one pet concierge, that handles all of it is a huge operational lift, with cost savings and ancillary revenue. With sound, fair policies and amenities, people do the right thing; restrictions make them sneak pets in, which is when issues arise. Implementing these policies can reduce incidents by about 25%.

Eddie18:42 I'm an owner watching this, starting to understand, but I do nothing about it. What's the risk, and what am I missing out on?

Luis19:00 There's a lot. This cultural shift is not reversing — it's accelerating. Are you going to adjust to the times or be left behind? Without specialized protections like pet insurance products and attorney-vetted policies and SOPs, you're indirectly increasing your risk and liability exposure. This isn't an afterthought, it's a necessity. And a welcoming environment is an amazing brand differentiator — being "the pet place" for the surrounding five miles will be a defining characteristic for properties in the coming decade.

Eddie21:21 I really appreciate this conversation. If you own or operate apartments, hotels, or rentals and this hits home, stay connected with us. We're committing to breaking down real-world examples so you can make smarter decisions around your pets, properties, and business. Luis, thank you for being with me today.

Luis21:52 Thank you so much, Eddie. Have a good one.