Pets for more rent or no pets for less?

[Daniel J Jackson]

Hello all:

I just finished rehabbing one side of a duplex and have two great tenant candidates.

OPTION A: Will pay $1,250 and has no pets.  2 adults and 2 young kids.  Great all around.

OPTION B: Will pay $1,250 + $75/mo for the two pets (a gray house cat and a lab/retriever mix). 2 adults and 3 kids (one 2 week old baby).

Which would you choose?

I like the idea of additional income of $900/year, but of course worried the pets will cost me more than that?  I will also have a deposit on hand of $1,250 (one month), so that can also protect me against pet damage on move out.

I am inclined to go with the people with pets, but I just finished this remodel and it looks nice, so I might be having an emotional reaction to animals messing it up?

Floors are vinyl plank laminate throughout.  Baseboards were cheap and easy to replace. What else should I be worried about?  How hard is cat smell to eliminate?

Thanks.  Open to any feedback.

Daniel

[Nathan Gesner]

@Daniel J Jackson your math doesn't work for an increased deposit. If @Kelly N. charges 1.5x the rent for a deposit, that's less than $75 a month rent and it's fully refundable whereas you get to keep the rent. 

I don't charge "pet rent" because then it's tied to the pet. Just increase the rent. That way you continue earning the higher rate even if the pet disappears.

If the animal causes damage, you can still charge the full amount to their deposit and/or go after them for collections. The increased rent is not to cover damages and you should never sell it that way. It's for the privilege of having pets in the home.

The deposit is treated like any other deposit and either applied to unpaid charges/cleaning/repairs or refunded to the tenant.

Cat urine is difficult to get rid of, sometimes impossible. If a cat urinates on carpet, it can soak through and get into the subfloor and may not come out. Many Landlords will accept dogs but not cats for this reason. In my personal experience, cats cause more "damage" to rentals than dogs do.