Tenants with pets...

[Eric Bradeis]

So when the tenant pays a pet fee, what exactly does that cover? Say for instance the tenant has a cat and at the end of the lease u find multiple pee stains on the carpets as your doing your move out inspection. Did the pet fee cover those stains? Or do u subtract how much it's going to cost to clean the stains from the security deposit? Thx.

[Nathan Gesner]

@Eric Bradeis this is determined by you and should be in the lease so there is no confusion. 

What is allowed? That may depend on your state law. Some states do not allow non-refundable deposits or limit the amount you can charge for a deposit. Others, like the great state of Wyoming, only require that you fully disclose whether an amount is refundable.

If a tenant has a pet, you can increase the rent and/or the deposit. If you increase the deposit, you should specifically state if it is a refundable deposit or if it is a "non-refundable fee". If it is a refundable deposit, I call it a "deposit increase" and avoid using the term "pet deposit" because that implies it is only for pet damage.

The deposit is $1,000 and you increase if $500 because the tenant has a dog. If the dog causes zero damage but the tenants 5-year-old twins cause a ton of damage, you want the entire deposit available to cover that.

I charge a baseline deposit. I increase the deposit based on the number/type of animal(s) and it is fully refundable or can be applied towards any charge after termination, whether it was the fault of the pet or not. I also charge an increase to the rent for each pet based on the type and size. The increased rent is mine to keep and the longer the tenant stays, the more money I make.