New tenant having severe allergic reaction to carpet

[Laura Johnson]

Our tenants child (1.5 yo) is allergic to dogs. He gets severe excema all over from them. These tenants have been in the home 2 weeks and he is having serious breakouts. I am not sure what the best options are to remedy this situation.

Background: We advertised as a pet friendly rental because we have owned a dog in this house (we barely moved out and have turned it into a rental). We informed them that we had a dog there, and because we are allowing pets we would not be changing out the carpeting. We would have it cleaned (which we did the day before they moved in). If we were going to pay for all new flooring, we were not going to allow pets.  This was all discussed when they came to see the home during our open house. They actually own a tiny dog, which stays on the tiled kitchen floor (he is trained very well. I went to their previous apartment to check it out and he is very good about not coming into the carpet). So they need a pet friendly rental, but their son can't be crawling on carpet that has animal dander.

We know they love the home. They have already cleaned up the yard and purchased a chicken coop. They have friends in the area. Their other child is registered for preschool. We can forsee them really enjoying the neighbors and staying for a while. But...the allergies.

So...options:

1. Allow them to break lease because of medical condition? We have a clause about ELT that states they can buyout with a 2 month rent due and 30 day notice, but I don't know if having a medical condition is under this. We can offer to find replacement renters and only charge them through when the new renter's move in.  ???

2. We can offer to refloor the home, but I would want to charge more of we are putting in all new flooring. Part of the way we priced them home was because the carpet is older. If we put down LVP in the main living areas and new carpet in the bedrooms, I would want to add another $50 (at least) to the rent. We are already on the lower side for a pet friendly house ($1685 for 4/2.5 split level in Silicon Slopes, that's including pet fee). I was looking at available rentals online tonight and most homes are $1900, they all have some carpeting in the houses, and none state "new carpet" so I believe they will have this issue at any other home they go to.

Are these viable options? We can offer to clean the carpets again, but the carpet guy said pet dander is a beast to remove. I know as a landlord we have to provide reasonable and good efforts to fix this issue, but reflooring without a rent increase seems above and beyond "reasonable".

And hey, thanks for reading my long and lengthy post!