pet fee vs pet deposit - or both?

[Greg Mayer]

Hi BP community!

My wife and I are purchasing a duplex in Atlanta. One side of the duplex has tenants that might stay after we close, the other side is vacant. We're moving into the vacant side and have two dogs, so we want to allow our tenants to have pets. But we're not sure whether to charge our tenants a pet fee or deposit (or both). 

Since we're living on the property and my lovely wife has past experience as a landlord, we thought we'd write up a 12-month lease and manage the property ourselves. At least for now until we get tired of managing things :)

The duplex has separate and fenced back yards. The occupied side has carpet in the bedrooms/stairs and laminate flooring. 

What are the pros and cons of pet fees and pet deposits? Any suggestions on what we might want to charge?

[Cara Lonsdale]

This is really about the language.  A FEE is a cost associated with the priviledge of having a dog.  A DEPOSIT is refundable at the end of the lease term if the condition is left the same as it started in.

I think the real question you should be asking (and maybe you are, and I am just getting caught up on the language) is should I charge a pet FEE and Monthly pet RENT.

We charge a non-refundable pet fee of $300-$350 (depending on the size of the dog).  PLUS a $25 per month Pet rent.

Monthly pet rent is becoming more and more common.  It can be as little as $20 per month, or go up, depending on the number of dogs, size of them, age of them, etc.  By calculating the risk of damage associated with the pet in question, your monthly pet rent can be a great way to mitigate the amount of expense after the lease is over to make repairs (because the pet rent has been adding up to cover them).

So, long story short.  The pet fee taken upfront covers the regular wear and tear that pets bring to a property.  The pet rent covers for any repairs you may have to cover at the end of the lease.

Best of luck to you!