Pet restrictions & fees?

Question

Hey everyone! I am just listing my first rental property and would like to hear some opinions on pets. What are your pet standards, do you set weight/ breed restrictions? Do you charge pet fees (refundable or non refundable) and/or pet rent? Thanks in advance!

Nathan Gesner · Answer

@Ashley North

You should allow pets. An estimated 60 - 70% of all renters have a pet. If you refuse them, you lose a large percent of the market. Pet-friendly rentals are hard to find so tenants are willing to pay more and stay longer when they find a rental that takes their pet. This means fewer vacancies and more money in your pocket. Also, the vast majority of renters are responsible people and take care of their animals. Instead of letting the bad apples ruin the opportunity, learn how to mitigate the risk and protect yourself while expanding your pool of available applicants.

Or you can be a carmudgeon like @Thomas S. and lose the opportunity at additional income. ;)

What I do:

1. A non-refundable fee. DO NOT call this a deposit. A court of law will see a deposit as refundable so there is no such thing as a "non-refundable deposit" and you shouldn't use that language. Call it a fee.

2. Increase rent to ensure more money the longer they stay. If you add $50 a month for a pet, that's $600 more in your pocket. The demands of your market determine how much you can get away with.

3. Screen the animal just like you would a person. I personally use PetScreening.com to screen all my animals. It's 100% out of my hands. Applicant is required to provide documentation, picture, and details of the pet which will help you avoid the applicant that claims to have a Chihuahua when it's really a Pit Bull. You can set limits on size, breed, and other options. This is 100% free to you! Another great service is that they automatically contact the tenant each year for a mandatory renewal. If tenant fails to renew, you are notified and can terminate the lease for failure to comply.

Your market and demand will determine how much to charge. You don't have to be crazy with the fees but they should be significant enough to dissuade fraudsters and put enough money in your pocket to off-set the additional risk. Here are my general policies:

I charge a default $250 fee. This is the same amount whether they have one pet or five but you may want to charge it per pet or charge a large pet fee and then a smaller fee for every additional pet. This fee is collected when they sign the lease and goes right to the owner.

I charge $50 per month per pet. Large pets (over 75 pounds) are $100 per month. I do not list this as pet rent. I increase the rent by that amount so that it is one charge each month. For example, the normal rent is $1,000 a month but I increase it to $1,100 because they have a large Black Lab. NOTE: I do not put anything in writing that says rent is increasing because of the pet. I don't want the tenant to come back six months later and tell me they removed the pet or traded it for a Chihuahua and then ask for a rent decrease. I may adjust it at renewal time but not during the lease.

I do not allow pets in apartments because of the high risk of noise, failure to clean up after, failure to keep the animal leashed outside, etc.

I include a stiff penalty of $50 per day for pet violations.

Marie Z. · Answer

Nathan: I was very interested on what you said in your reply regarding pet restrictions & fees. I'm curious to know how you word your lease agreement regarding the additional monthly pet fee increase. Please share this info with us. Currently working on a lease in a small condo, tenants have a large german shepherd.

"I charge $50 per month per pet. Large pets (over 75 pounds) are $100 per month. I do not list this as pet rent. I increase the rent by that amount so that it is one charge each month. For example, the normal rent is $1,000 a month but I increase it to $1,100 because they have a large Black Lab. NOTE: I do not put anything in writing that says rent is increasing because of the pet. I don't want the tenant to come back six months later and tell me they removed the pet or traded it for a Chihuahua and then ask for a rent decrease. I may adjust it at renewal time but not during the lease."

Thomas S. · Answer

I only have multi unit rental properties making consideration for other tenants reasonable enjoyment  mandatory. Therefore no pets allowed.

If you rent sfhs damage risk is higher but you do not have to worry about noise issues or dog attacks. Tenants renting sfhs are willing to pay for the luxury of having pets but they are also more likely to bring in animals without permission when you have a no pet policy. Probably best to take pets when renting a SFH since you will likely end up with them anyway. May as well make money from them with higher rents.

Thomas S. · Answer

Do yourself a favour and do not allow pets. If you do have damage the cost will exceed any fee or deposit.

If you do allow pets raise your rent by $50- $100 per month instead of charging a flat fee. When renters want the luxury of having a pet make them pay for it.

Robert Biggerstaff · Answer

250 non refundable deposit per animal and $25 per animal each month is what I get

William Clark · Answer

I noticed no one responded to your post so I'll respond.  Since we're talking about pets and not service animals, you can legally set limits to anything you want.  You cannot change the terms half way into the least, but as long as the terms are CLEARLY set, you can set your own terms.  You can even take it a step further and require that the potential tenant actually initial the lease to emphasize that specific clause, but ONLY if you've required other tenants to do the same.  If you haven't, you run the risk of an FHA (Fair Housing Act) violation since it can be argued that you required something in one lease that you didn't require in another lease.  Even if it's innocent, it can be perceived as discriminatory.

I've seen countless pet restrictions that completely legal.  As long as you're not trying to restrict a service animal, you're good to go.  The house that I just rented a while back had a pet security deposit required.  Now, I'm a disabled veteran that has 3 dogs, but only 1 of them is a legitimate service dog, but I was completely honest with my landlord and told them that 2 dogs were actually pets.  (Keep in mind, I'm not so naive to think that everyone is this honest).  I was legitimately charged pet deposits for 2 dogs.  In the event that it comes up, I honestly would not ask the potential tenant if their dog is a service dog because anyone can claim their dog is a legitimate service dog and there's no much in the way you can do to prove otherwise since there's no federal law requiring appropriate documentation.  I know that's not what you asked, I'm just mentioning it because it does come up from time to time.  Hope this helps.

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