Perspective Tenant Has Banned Dog-What to do?

[Chris Svendsen]

I am in a quandary with a perspective tenant.  For last month or so I have been showing the house to lots of people and have had a few applicants that just did not work out for whatever.  Been working on house for a year so need to get someone in it to turn the tide of money going out. Tonight had great perspective tenants show up. They plan on being in house at least 2 years, have great credit, good income, appear references will not be a problem, and all around good people.  When they asked if I allow pets I said yes as long not under the listings my agent has for vicious breeds.  Sure enough one dog is a German Shepard, which is the 3rd or 4th dog deemed by my agent as not being allowed at property.  

My problem is what to do.  Supposedly dog never done anything wrong towards anyone and have no reason to think it has.  I myself have had shepherds and rot's with never had any issue either.  Now stuck, have great perspective tenants with a dog insurance agent will not want.  Do I take them in and have sign something stating if anything negative ever happens they are responsible for any and all damages and myself, wife, and company have no responsibilities for the dogs behaviors?  Do I say sorry dog is not allowed in house due to insurance company rules?  Not sure what to do here. 

 If it was a service dog my understanding I would have to take it in anyway but then what would I do about insurance company.  Seems like stuck in a bad place on this one.  As I get closer to end of this month feel I may be sitting on house all winter. Already had to drop rent by $200 because all remaining house around me began dropping prices fast to try to get someone into them before winter.  Hate to carry this thing for another 3 or 4 months.