Inherited Tenants with Pets in Duplex, Looking to Rent Other Half

[Zachary Elliott]

My business partners and I purchased a duplex within the last year. The duplex was fully occupied upon purchase and in an effort to keep it that way (at least initially), we had both tenants sign a lease. The tenant in the upstairs signed a shorter lease, as she was already looking to move out when we purchased the property. The tenant on the bottom owns 3 dogs. Although none of us were thrilled about the idea of pets, she had been in the property for a number of years, pays on time and cuts the grass.

The upstairs tenant has recently moved out, and we are rehabbing the upstairs unit, as it was very dated and we'd like to get a little more in rent. While working on the unit, it has come to our attention that the dogs, when outside, bark a lot. For reference, there is a fenced backyard. Additionally, they bark at us as we pull in to the driveway (units have separate driveways and entrances). I'll go ahead and admit that the decision to keep the lower tenant may not have been the best idea so don't beat me up too badly there. But my question is that we are concerned this will seriously detract from potential renters and I was looking to see if anyone had dealt with something similar or had any creative solutions to the problem. Our property is in a good school district and a decent neighborhood, so I believe we can attract quality tenants otherwise.

We've considered the idea of putting of fencing down the middle of the back yard or something similar. We are also considering providing proper notice at the end of the lease and charging pet rent, etc. I look forward to hearing your comments/suggestions. Thanks!