Long term tenant just renewed lease and asked if she could have a pet

[Becca F.]

I have a great tenant, going on Year 4 in a SFH in an Indianapolis suburb. I did a 6% rent increase ($90) for 2023-2024 and did a less than 2% increase ($30) this renewal 2024-2025. New rent is $1680. The increases aren't keeping up with my property tax increases but I don't want this tenant to move out. I'm slightly below market rent. She just communicated to my PM about asking if she could have a pet rabbit. I'm open to this but would like to charge a monthly pet fee or a one time fee (per a year long lease).

With a previous tenant in 2019 I charged $35 for that tenant with a small dog. If I had been a large dog (e.g. 45 lbs or heavier, like Labrador, Golden Retriever, etc) I would have charged $45. My PM said some people charge both an additional security refundable deposit ($250 was my thought at the time) and monthly pet fee or I could just do one. I did the monthly pet fee/rent. Since it's 2024 and costs have gone up, I would increase those numbers to maybe $40 (small dog/cat) and $50 (larger dog). 

What are people doing with pet fees? In this case with a rabbit, what do you think is a fair monthly pet fee? Or a one time fee? I was thinking $30 a month. I would think a rabbit does less damage than a cat or small dog. Do I look greedy if I charge more? 

[Kevin Sobilo]

@Becca F., I charge a refundable $250 deposit plus $25/month per pet. I don't charge differently for different sizes because I don't want to be showing up in a scale to determine if the pet is over or under the weight threshold. I also tack on a $50 pet cleaning fee because there will generally be some extra cleaning related to pets when they leave. I clean no matter how clean the tenant appears to leave the unit.

My policy is based on the goal of collecting enough to cover a typical amount of pet damage over a 1 year lease. So, that if they stay longer or have multiple pets I will end up ahead on average but otherwise over the long run I am reasonably protected for the additional damage risks. I allow pets as a way to attract and keep better tenants longer. So, I make more money by reducing vacancy/turnover and having fewer tenant issues more than by collecting additional income from the pets.