Should I charge for actual pet repairs in addition to monthly pet fee?

[David Moore]

Hi BP, we charge a $50 non-refundable pet deposit and a $25/mo fee per pet. In my mind, this is a nominal amount to help in the event that we have to cover extensive damage that the normal deposit would not cover.

I just had a tenant move out and found the place has fleas and some other minor damages. I realize I should probably apply the initial $50 deposit by nature of it being a "pet deposit", but would you deduct the rest of the extermination fee from the normal security deposit or count the $25/mo funds toward this and give them a full security deposit refund? I think of the $25 as an "option" fee to allow the pet to live there, much like someone would charge to add an extra appliance, etc. and not necessarily to cover damages. What do you think?

[Marcia Maynard]

The monthly pet fee is for allowing the tenant to have the pet there and to cover the extra work you do in qualifying the tenant's pet and for the overall extra wear-and-tear a pet is likely to cause.

The pet deposit and security deposit is to cover damages and costs beyond wear-and-tear. Exterminating for fleas falls into this category.

Also, in some states, such as Washington State, there is no such thing as a "non-refundable deposit". By our state definition, deposits must be refundable if certain terms for their return are met. Fees however are charges that are non-refundable. Fees can be applied for specific lease violations or for specific privileges. Some examples for use of fees include: late fee, service fee or posting fee (for serving legal notices), unauthorized pet fee, unauthorized occupant fee, etc.  

For the privilege of keeping a pet, I would charge additional rent for each pet, instead of a fee. Also, I would also charge additional security deposit instead of establishing a separate pet deposit.  That way I would not need to show the correlation between the pet and the use of the pet deposit, I could just apply it to the damages.

Also, I would charge for damages as they occur or upon discovery of the damage. This is why periodic property inspections are important. That way I keep the security deposit intact and available for me to use after the tenant has moved out to cover damages and other things I discover at that time. Because they are not tied to a specific purpose, security deposits can be used not only for damages, but for extra cleaning, missing items, unpaid utilities, unpaid rent, and unpaid fees. Not so if you label a deposit as a cleaning deposit, damage deposit or pet deposit.