Pet deposit, Pet Fee

[Caryn Seifert]

Hi! On occasion I rent to tenants with pets if all the other boxes are checked. Not sure if I need to increase the fees. What do you charge?

Currently I charge a $300 non-refundable pet fee and $50/mo per pet. I think the non-refundable fee is low based on the damage pets can do (not to mention tenants). I am thinking of raising this to $500 and also increasing the refundable deposit by a few hundred. 

SF in Ohio. Rent $1200. Security deposit $2400. If no pets. TIA for your input. 

[Jonathan Greene]

In NJ, you can't charge a non-refundable pet fee anymore, only the monthly. My landlords usually charge $50/month for a big dog over 40 pounds (or for any dog) and $25/month for cats or very small dogs. So, you might want to check and make sure you can still do the non-refundable one time fee.

I don't think anyone will pay $500 non-refundable and $50/month per pet for $1,200 rent. I would think you would need to be at around $3,000 or more a month to warrant that.

[Sam McCormack]

Quote from @Caryn Seifert:

Hi! On occasion I rent to tenants with pets if all the other boxes are checked. Not sure if I need to increase the fees. What do you charge?

Currently I charge a $300 non-refundable pet fee and $50/mo per pet. I think the non-refundable fee is low based on the damage pets can do (not to mention tenants). I am thinking of raising this to $500 and also increasing the refundable deposit by a few hundred. 

SF in Ohio. Rent $1200. Security deposit $2400. If no pets. TIA for your input. 

 Agree with Jonathan here, those do seem high. I use $250/pet and no additional monthly. But we are in different markets, it could be different there. He is going to be more knowledgable than me

[Drew Sygit]

@Caryn Seifert agree with @Jonathan Greene about $500 being too high.

Perhaps give prospects a choice of higher Pet Fee or higher monthly Pet Rent?

So, like: $300 fee & $75 rent or $500 fee & $50 rent.

[Nathan Gesner]

Quote from @Caryn Seifert:

Why do you think the fees are low? Have you ever had a pet cause more damage than the fees you've collected?

You have a $2,700 deposit with a pet. Add $50 a year and that's another $600 you've collected. You would need $3,300 in damages before it impacts your investment. 

As long as you are screening the tenants/animals well and conducting inspections, I think you'll be fine. My pet fees are $30 - $100. I can't remember the last time a tenant's pet cause damage that wasn't covered by the deposit.

[Adam Bartomeo]

Wow... after reading this I feel like there is a lot of overcharging going on... We went away from pet deposits and pet fees years ago. Currently, we charge $50/mon pet rent. The rent and security deposit should be used towards and damages. Why else would you have pet rent?

[Matt Moore]

First, I would recommend calling around to apartments and other PM companies in your area to find out what is common.  You might be able to browse Apartments.com or other listings and get a sense.  

If I own the property, I don't charge pet rent but charge a slightly higher pet fee.  As a property manager, creating a standard that establishes the trifecta of benefits and tension is good.  The trifecta is making the owner and property manager happy, compensating for the extra risk, issues, and potential repairs, and encouraging the resident to limit the number of pets and be sure they are not damaging the property.  While the fees no never "liked," they do encourage the best behavior.  We need to remember that our job as a PM is to protect and build the value and cash flow of the property for the owner. 

Matt

[Ferras Zereik]

Quote from @Caryn Seifert:

Hi! On occasion I rent to tenants with pets if all the other boxes are checked. Not sure if I need to increase the fees. What do you charge?

Currently I charge a $300 non-refundable pet fee and $50/mo per pet. I think the non-refundable fee is low based on the damage pets can do (not to mention tenants). I am thinking of raising this to $500 and also increasing the refundable deposit by a few hundred. 

SF in Ohio. Rent $1200. Security deposit $2400. If no pets. TIA for your input. 

 Hi Caryn, I am a property manager. What I typically see from our clients is that they charge anywhere between $250-$500 non refundable pet fee depending on the size of the dog and how many of course. If there are 2 bigger dogs (30-50 lbs) then usually it is $1,000 non refundable. 

[Marcus Auerbach]

Your rent seems low and your security deposit is already quite high at twice the rent. I don't get the non-refundable deposits, people often call that a junk fee. We charge $50 for a large pet and $25 for a small. My experience is that screening is more important than security deposit. Pet damages have been rare for us and owners were mostly very forthcoming and willing to pay. 

We had one incident where a tenant got divorced, mentally fell apart, received a dog as a gift and kept it locked in a bedroom all day. The rest of the house was not much better and the damages by far exceeded the deposit. But that was overall a tenant issue, not a pet issue.

[Michael Diossa]

I would say if you vet the tenants appropriately no dog should commit that much in damages.

[Sarah Rosko]

We charge a non-refundable pet fee of $100 per dog and $50 per cat. For monthly pet rent, we charge $50 per dog and $25 per cat. To help assess each pet, we use a service called PetScreening, which rates pets based on various factors. This tool helps us determine if an additional deposit or rent increase is needed based on the pet’s profile.

[Alan Asriants]

I charge a $500 deposit or a $25/m pet fee

But I have a condition...

I tell the applicant that I usually do not take pets, but I do make exceptions. I first need to see their place before I make a decision. 

I have a dog and my place is spotless, and I know plenty of people who are the same way. Its not the animal - it is the owner. 

Seeing their place is a great way to tell how your tenant will take care of your property. Might start doing this for all tenants - even without pets. 

If they deny me to enter, I deny them

[Alecia Loveless]

@Nathan Gesner I think pets are family and we don’t charge extra for children.

I don’t charge a pet deposit or pet rent but I do put in the lease that the tenant is responsible for any and all pet damage.

In 5 years I have not had a problem.

I’m sure that will eventually catch up to me and I’ll have some problems but I feel the increased tenant pool outweighs any negative. Also most of my units are super nice so rent is already at a higher premium than some of the competition charges.

[Jimmy Lieu]

Quote from @Caryn Seifert:

Hi! On occasion I rent to tenants with pets if all the other boxes are checked. Not sure if I need to increase the fees. What do you charge?

Currently I charge a $300 non-refundable pet fee and $50/mo per pet. I think the non-refundable fee is low based on the damage pets can do (not to mention tenants). I am thinking of raising this to $500 and also increasing the refundable deposit by a few hundred. 

SF in Ohio. Rent $1200. Security deposit $2400. If no pets. TIA for your input. 

Wow, I feel like the pet fee here is quite high! I would say if you're that cautious of how much a pet will damage your property, I would just say no pets in this case. Typically, I've seen $25-50/mo for the pet fee

[Kevin Epp]

I give them an option: $50/mo per pet or $500 up front.

Most choose $50/mo/pet. That's $600/year/pet to the owner.

I very much agree with Alan Asriants above. Almost always, it's the owners that determine what happens with their pets and how much damage they do. Same pet, two different owners, can have two different outcomes.

Haven't though of this yet, but Alecia Loveless' technique of putting in the lease that tenants pay for any/all pet damage is smart.