I'm not sure what you are trying to do with the kennels. It should add dogs as an option during sex scenarios and add additional materials to collect in the mansion.
And yet I have neither the sex option nor the materials to collect, so, I'm at a loss. Currently Kennel lvl2, and nothing appear in neither possible spot. So I was hoping there were something else.
Gonna push it to lvl3 and see if I get the collect leather, just in case.