Pet fees?

Question

My wife and I are new to landlording and would like to know everyone's opinion on pet deposits/fees. We are multiple pet owners ourselves so we want to make our units pet friendly. We have noticed that some people ask for a one time pet fee up front while others charge "pet rent" each month. What is a reasonable amount to charge in pet fees? I know this may be market specific so anyone with knowledge of the Nashville market would be especially appreciated.

Wesley W. · Answer

I charge a $200 non-refundable fee per pet.  Almost no one bats an eye at paying. It's a bargain to the tenant whom considers the pet as a member of the family.

The animal needs to be spayed/neutered and have current shots and registered with the municipality.  I accept most dogs (except for dangerous breeds per insurance carrier) and cats.  In our market, a lot of landlords don't accept pets, so this gives me a competitive advantage - just make sure you screen the tenants well.  What's worse than a problem tenant?  A problem tenant with a problem pet!

My rents are all MTM, so the one-time charge incentivizes the tenants to stay longer to amortize the cost.

Gino Barbaro · Answer

@Scott Mitchell@Jake Stenziano

Hi Scott,

In this day and age, almost 50% of potential tenants own pets and any landlord that does not rent to pets is losing out on a large share of the market.  We charge a non refundable deposit, along with a higher per month fee on the rent.  You can limit the number of pets to any number you desire.  You can also charge per pet.  I have seen many landlords specify the type of breeds they will not allow and also the size of the pet.

When analyzing a potential deal, this is one of the areas that we look for to generate additional revenue.  Many landlords still don't charge these fees, and if you are buying a sizable property, then the additional revenue can be pretty significant.

Gino

Rick Beno · Answer

I charge an extra $250 non-refundable and $250 more on the security deposit. I use the non-refundable for carpet and/or vent cleaning. The additional security deposit covers any other damage caused by the pets. I did have a great prospect who asked me if they could spread out the $250 non-refundable over the first several months rent, and I agreed to that.

I have all single-family, neighborhood homes. Taking pets is almost a necessity to get tenants.

I have all single-family, neighborhood homes.  Taking pets is almost a necessity to get tenants.

Penny Clark · Answer

@ScottMitchell, for our rentals we have done either a pet deposit or pet rent. But before deciding on which policy you use, set some limifs on types of pets you will allow. For example, for dogs, the adult dog must be 25 pounds or less and a nonaggressive breed (most insurance carriers won't allow pitbulls, chows, Rottweiler, etc). With cats and dogs, we ask they be neutered or spayed and be current on rabies vaccination and registered with city or county.

As for pet rent vs pet deposit, we prefer pet rent because you're getting a set amount every month for wear and tear pet may cause. If you charge a pet deposit (we charge a minimum of $350) you may have to prove the damage to carpet was caused by the animal to deduct it from the deposit. Pet rent can run from $15-45 per month depending on the area, size and number of animals (you'll want to limit number of animals too).

Lastly, petproof your rental. Install hardwood, laminate or file floors and eliminate carpeting; use blinds instead of curtains and have a fenced yard.

I hope this information helps.

Aly W. · Answer

I don't charge a separate pet deposit or pet fee, I just increase the regular deposit. At the end of the lease, I don't want to get into a discussion about whether the pet caused damage or the tenant's child/guest/whatever caused damage. I also feel that if I charge a non-refundable pet fee, the tenant has no incentive to keep the property clean if they know they won't get their money back anyway.

Since we have mostly condo rentals, there are enough application, parking and registration fees to begin with. One large deposit keeps things simple and doesn't seem overwhelming to tenants.

I have charged extra rent per month for pets, recently for a tenant with 2 small dogs. The condo association sets the rules for size and number of pets, which also keeps things simple.

Nathan Gesner · Answer

i used to charge a pet deposit but recently switched to pet rent. It's easier for the Tenant to swallow and it  can put a lot more money in their pocket.

The rent is per pet and $10 - $40 depending on size. Two large dogs is an extra $960 a year. Tenants are still responsible for a professional carpet cleaning.

Troy Meyer · Answer

Also remember a pet Deposit has to be returned and a Fee does not, so thinking your getting a fee but describe on lease as a deposit may come back to haunt you.

Pet fees?

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