Charging for pets each year ??

[Lindsey Vargas]

I inherited dream tenants and it is time to renew their lease. On their original lease, it states they will be charged $200 pet fee for EACH pet at the renewal of the lease. (They have 2 dogs) Does this seem steep? I know it's an opportunity to make an extra $400 but I see this being a huge problem to our tenants. 

[Scott Trench]

Agree with @Michael Smith. You need to create a policy that works for you and stick to it. With regards to pets the overall philosophy from me is this:

Pets increase your risk of damage substantially. It's a fact. This risk and the real dollars in damage that pets produce over time must be offset by advantages if we are going to allow them in our property. 

The overwhelming advantage of allowing pets into the property is that it increases the pool of potentially suitable renters. 

That's it. I know of no landlords - perhaps I will meet the first one in response to this post - who truly make money/profit, on average, from pet rent and pet fees. Over time, the big damage caused by pets when tenants move out crushes years of pet rent, deposits, and fees, more or less. I suppose an exception are the guys who truly can charge hundreds per month per pet on average.

The good news is that qualified tenants show up in droves when a property allows pets, oftentimes tenants who are far superior applicants to those without pets. This allows me to rent out my property to a lower risk tenant, and one who I believe is likely to stay for longer. Therefore, I allow pets in most rentals. 

In an attempt to offset the risk/damage that I believe the pets will cause, on average, over time, I charge the following per animal:

Cats: $200 move-in fee, plus $25 per month

Dogs: $200 move-in fee, plus:

- $25 per month for a small dog (less than 25 lbs) 

- $50 per month for a medium dog (25-50 lbs) 

- $75 per month for a large dog (50+ lbs) 

Additionally, I must meet the animal, and preferably at their current residence, prior to move-in. It's pretty difficult to hide an animal that makes an atrocious mess, barks incessently, etc. I can tell within seconds for dogs, for example.

In your case, you are lucky - you have a low risk tenant and low risk animals. You may be able to make an exception this time, and use your judgment to reduce or eliminate this fee. That's a privilege this one time. Never again - you must keep and enforce your policy, based on your philosophy.