Why you SHOULD allow animals

[Nathan Gesner]

This is probably the best study I've found on the benefits of renting to pet owners. Too many Landlords believe pets cause too many problems and result in a loss of revenue. This study found the opposite to be true. Based on my personal experience with approximately 10,000 leases, I can verify animals are a money-making machine, not a detriment to your business.

Pet-Friendly Housing Study

I hope you actually take 10 minutes to read the article because it has some great information. For those that can't find the time, here are some key findings:

• Approximately 50% of housing studied was pet-friendly to some degree. Only 9% allowed animals without restriction, half allowed cats, and 11% allowed large dogs.
• 82% of renters reported problems finding housing that would accept their pet.
• Pet-friendly rentals earned about 20% more in rent.
• Annual net benefit to the Landlord was $2,949.
• Tenants with animals stayed 3x longer.
• Vacancy was shorter and marketing costs were lower for pet-friendly rentals.
• The average damage reported by each Landlord was $430
• Pet owners did not cause more damage than Tenants without pets, whereas Tenants with children averaged $150 more in damages
• 20% of the tenants surveyed admitted to keeping an animal illegally
• Proper screening significantly reduced the risk. Only 3.7% of the Landlords required pet references, only 7.4% required a pet resume, 11% required health records, and only 18.5% required Tenants sign a pet agreement.

The bottom line: renters with animals are no more dangerous to your property (on average) than renters without animals. The increase in damages is negligible and the financial benefits are absolutely staggering. 

The best thing you can do as a Landlord is:

• educate yourself on how to screen animals properly
• develop rules and be prepared to enforce them
• charge reasonable fee for the benefit of allowing animals.

You'll rent places quicker and easier, you'll make more money, and your tenants will stay longer.

Landlords, join the conversation:

• Does your personal experience match the findings?
• How do you screen animals?
• Do you charge for animals? Deposit, fees, or rent? Or all three?
• Do pet owners leave more damage or cause more problems than people without pets?
• Do pet owners stay longer?
• What's the biggest difficulty you have with animals?

[Joshua Haynes]

@Nathan G. This is great info 😁Thanks!!!

[Brian Liscio]

@Victor Avelino

I ask my tenants to get a liability policy added to their insurance and send me the declaration page.

Even for my own dwelling policy I had to find another insurance company that would allow a Husky. (NJM Insurance)

[Timothy Smith]

Did anyone else catch that the referenced article is from 2004? I wonder if those numbers have shifted at all. I don't expect the outcomes would be that much different, but it would be informative to see an updated study. There is good money being left on the table by not accepting pets, and many responsible, caring people have them. Ideal tenants, in many cases.

I've been leaning towards this approach for some time now -- my last round of vacancies were open to dogs but it just so happened that no dog-owners applied. Damage to flooring and nuisance to others are my two main concerns. Most of our units have tile or new LVP, with only a few having original hardwood floors, so I think most of the floor concern can be mitigated.  

It still comes down to tenant screening. You can't blame a dog for poor behavior if the owner shuts it in a room all day. My old landlord allowed me to adopt a dog, primarily because I had already proven myself as a good tenant, and I do not work traditional hours so I was away from home for no more than 3 hours at a time. 

@Wesley W. I am also in NYS and consider myself well-read on the updated LL/Tenant law from last summer. However, not being able to charge pet fee or pet rent is news to me. Where in the legislation (all 55 pages of it) can one find this?

[Timothy Smith]

@Wesley W. I just did some digging and quickly found this link, which I've copied the pertinent text below. https://www.dos.ny.gov/licensi...

2. CAN A LANDLORD’S AGENT COLLECT AN ADDITIONAL SECURITY DEPOSIT FOR PETS OR MOVE IN EXPENSES?
No, Section 7-108(1-a)(a) of the New York General Obligations Law (NY GOL) states, in part, “No deposit or advance shall exceed the amount of one month’s rent under such contract.” A deposit is intended, in part, to reimburse a landlord’s costs “beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings. The landlord may not retain any amount of the deposit for costs relating to ordinary wear and tear of occupancy or damage caused by a prior tenant.” NY GOL § 7-108(1-a)(b). A broker acting on behalf of a landlord and who collects an additional pet deposit or move in fee can be subject to discipline pursuant to Section 441-c of the New York Real Property Law (NY RPL)

OK then, can't collect any pet fees/deposits! I see they are just lumping it in with the "security deposit no greater than 1 month rent" rule, but anyone I've consulted with does not consider the pet deposit associated with the security deposit -- a slippery attempt to disassociate the two deposits. 

What about increasing rent for allowing pets? How do you word that in your ads and pet policy?

[John Fider]

Great points there! thank you. the extra income certainly makes it worth it for me. My concern is if a problem was reported, like a leak in the apartment and I needed to get in there quick...

Can I put in the pet addendum that dogs have to be in a crate when they are not home? It would be terrible if Im not able to come in to fix the problem bec theres a huge dog stopping me. 

Also is there language that can protect me from a pet running out the door and getting lost, all bec I had to come in for same situation?

[Nathan Gesner]

Originally posted by @Shaun Hunt:

Our luck has been the same. Every purchase we made, that the previous tenants had cats, has been a nightmare! One tenant had his cat locked up with him in his room all day. The tenant would sleep, play video games and the work a little outside the home. Upon purchasing the property, he moved out and holy cow, that room was an absolute disaster! 
Most of you can imagine the smell and mess, so I will spare you the details. Needless to say, the home wasn’t livable because of the one bedroom.

Now, the current tenants have a Rottweiler, which has been approved. My problem is that I just found out they sneaked a pitbull and another renter. Supposedly, they will only be there two more months. Should I make a stink about it or just turn a blind eye?

Since they only have two months left, there's not much point in pushing them. I would let them know right now that you won't allow them to renew or extend, and offer them the option of leaving early without penalty to see if you can get lucky and get them out sooner.

[Nathan Gesner]

Originally posted by @Timothy Smith:

@Wesley W. I just did some digging and quickly found this link, which I've copied the pertinent text below. https://www.dos.ny.gov/licensi...

2. CAN A LANDLORD’S AGENT COLLECT AN ADDITIONAL SECURITY DEPOSIT FOR PETS OR MOVE IN EXPENSES?
No, Section 7-108(1-a)(a) of the New York General Obligations Law (NY GOL) states, in part, “No deposit or advance shall exceed the amount of one month’s rent under such contract.” A deposit is intended, in part, to reimburse a landlord’s costs “beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings. The landlord may not retain any amount of the deposit for costs relating to ordinary wear and tear of occupancy or damage caused by a prior tenant.” NY GOL § 7-108(1-a)(b). A broker acting on behalf of a landlord and who collects an additional pet deposit or move in fee can be subject to discipline pursuant to Section 441-c of the New York Real Property Law (NY RPL)

OK then, can't collect any pet fees/deposits! I see they are just lumping it in with the "security deposit no greater than 1 month rent" rule, but anyone I've consulted with does not consider the pet deposit associated with the security deposit -- a slippery attempt to disassociate the two deposits. 

What about increasing rent for allowing pets? How do you word that in your ads and pet policy?

Yes, you are limited to a deposit of one month's rent. However, you are allowed to charge an animal fee up front (you can call it a processing fee or animal fee or whatever) and you're allowed to increase the monthly rent. I've read the averages in New York are $250 - $500 up front and $35 - $50 a month. Each charge is per animal with a limit of two animals.

[Nathan Gesner]

Originally posted by @John Fider:

Great points there! thank you. the extra income certainly makes it worth it for me. My concern is if a problem was reported, like a leak in the apartment and I needed to get in there quick...

Can I put in the pet addendum that dogs have to be in a crate when they are not home? It would be terrible if Im not able to come in to fix the problem bec theres a huge dog stopping me. 

Also is there language that can protect me from a pet running out the door and getting lost, all bec I had to come in for same situation?

YES! I require animals to be removed from the property or crated during any visits. You should reserve the right to charge a fee if they fail to abide by that rule and it prevents you from entering. And you should state that you're not held liable for any animals that escape.

[Matt Nico]

Originally posted by :

@Matt Nico

There are three possible charges:

• Fees are non-refundable
• Deposits are always refundable
• Rent

Make sure you use the appropriate term or it can come back to bite you like a rabid Doberman! 

If you charge a "deposit" then the law will always consider it refundable. This provides you a little extra protection but does nothing to increase your income.

Fees are non-refundable. They can be charged up front or used as a penalty for violations. For example, some Landlords charge a nominal fee for the administrative cost of pet screening or creating a pet addendum. Others charge a large fee up front to off-set the increased risk of damage or as a method of dissuading people with pets from renting. I've seen people charge up to a month of rent as a pet fee, which I find absolutely unreasonable. But, it's a free country and we're all able to run our business the way we see fit.

Pet rent is an increase to the monthly rent that really increases your return. Compare these options:

• $300 deposit: fully refundable, no increase to net income, provides very little protection
• $300 fee: non-refundable, increase net income $300 or provides $300 in additional protection
• $50 rent: non-refundable, increases net income $600 or provides $600 in additional protection
• $300 fee + $50 rent: non-refundable, increases net income $900 or provides $900 in additional protection

There are a variety of ways to structure it but I always recommend fees and rent, not refundable deposits. Check your local market to see what others are charging and what is reasonable for your area.

P.S. I do not recommend you use the term "pet rent" in your marketing, lease, or anything else. Simply increase the rent based on the animal. If rent is $1000 a month and you want to charge $50 per animal, a tenant with two animals would pay $1100 a month rent (a 10% increase). One of the biggest reasons for this is that tenants will remove an animal for some reason and then ask for a reduction in the rent. Don't do it. The rent increase remains in place for the term of the lease, even if the animal is removed one month after occupancy. Why? Because the rent increase is to offset additional damage and the damage could be caused during that one month the animal occupied the property.

Nathan,

Thanks for all of this information. This post was literally the exact information I needed. This really clarifies it. I actually just updated my lease as it said "Non refundable pet deposit". It says "fee" now. 

-Matt

[Matt Smith]

This all makes a lot of sense. I like the idea of increasing the rent based on the pet, I have seen multiple properties that I have lived at do the same thing.

[Wesley W.]

Originally posted by @Timothy Smith:

@Wesley W. I just did some digging and quickly found this link, which I've copied the pertinent text below. https://www.dos.ny.gov/licensi...

2. CAN A LANDLORD’S AGENT COLLECT AN ADDITIONAL SECURITY DEPOSIT FOR PETS OR MOVE IN EXPENSES?
No, Section 7-108(1-a)(a) of the New York General Obligations Law (NY GOL) states, in part, “No deposit or advance shall exceed the amount of one month’s rent under such contract.” A deposit is intended, in part, to reimburse a landlord’s costs “beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings. The landlord may not retain any amount of the deposit for costs relating to ordinary wear and tear of occupancy or damage caused by a prior tenant.” NY GOL § 7-108(1-a)(b). A broker acting on behalf of a landlord and who collects an additional pet deposit or move in fee can be subject to discipline pursuant to Section 441-c of the New York Real Property Law (NY RPL)

OK then, can't collect any pet fees/deposits! I see they are just lumping it in with the "security deposit no greater than 1 month rent" rule, but anyone I've consulted with does not consider the pet deposit associated with the security deposit -- a slippery attempt to disassociate the two deposits. 

What about increasing rent for allowing pets? How do you word that in your ads and pet policy?

 Any form of additional deposit beyond 1 month's rent is no longer allowed.  Anything you collect from the tenant for later use is considered an "advance", which is now illegal in NYS.

As previously stated, I am charging "pet rent", but will word it as Nathan described moving forward.

[Wesley W.]

Originally posted by @Nathan Gesner:

Originally posted by @Timothy Smith:

@Wesley W. I just did some digging and quickly found this link, which I've copied the pertinent text below. https://www.dos.ny.gov/licensi...

2. CAN A LANDLORD’S AGENT COLLECT AN ADDITIONAL SECURITY DEPOSIT FOR PETS OR MOVE IN EXPENSES?
No, Section 7-108(1-a)(a) of the New York General Obligations Law (NY GOL) states, in part, “No deposit or advance shall exceed the amount of one month’s rent under such contract.” A deposit is intended, in part, to reimburse a landlord’s costs “beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings. The landlord may not retain any amount of the deposit for costs relating to ordinary wear and tear of occupancy or damage caused by a prior tenant.” NY GOL § 7-108(1-a)(b). A broker acting on behalf of a landlord and who collects an additional pet deposit or move in fee can be subject to discipline pursuant to Section 441-c of the New York Real Property Law (NY RPL)

OK then, can't collect any pet fees/deposits! I see they are just lumping it in with the "security deposit no greater than 1 month rent" rule, but anyone I've consulted with does not consider the pet deposit associated with the security deposit -- a slippery attempt to disassociate the two deposits. 

What about increasing rent for allowing pets? How do you word that in your ads and pet policy?

Yes, you are limited to a deposit of one month's rent. However, you are allowed to charge an animal fee up front (you can call it a processing fee or animal fee or whatever) and you're allowed to increase the monthly rent. I've read the averages in New York are $250 - $500 up front and $35 - $50 a month. Each charge is per animal with a limit of two animals. 

 Sadly,  this is not true in NY. Anything collected from the tenant beyond a month's rent is considered an advance,  regardless of it's intended purpose or justification, and regardless of whether it's collected at move in or some other time during the tenancy.

[Jessica-Nicole Ulloa]

I have a pet and because she’s hypoallergenic and 4lbs, I get really annoyed having to pay fees when she is potty trained and does not damage property or disrupt ppl in any way.

Even if I don’t agree with it, I would pay a reasonable fee-maybe 150-200 if it’s a really high end area. I will only pay this because I know it costs for cleaning of pet facilities and to pay back the construction of pet facilities. If the apartment doesn’t have this, then I think it’s ridiculous to ask this of them. Any more than that, I’m just not paying and not documenting her. I especially won’t pay a pet rent fee. That’s ridiculous. I don’t expect my tenants to either. That’s like punishing someone with fees for doing a good thing. What’s stopping you from charging tenants extra for kids?

Also if a pet is causing damage, I think that tenant needs to pay his fair share of damage.

[Anthony Wick]

@Nathan G.

We used to not allow pets, but we changed our thinking. We now charge $150 non refundable pet fee, plus we raise rent $50 per month (Note: We do not call this pet rent). This is for up to 2 pets. Of course, we just had a bad experience with a cat on a tenant that just moved out. Many hours and costs to mitigate for urine in basement concrete floor. We are not going to allow cats in the future.

[Jessica-Nicole Ulloa]

Also I’d like to add...

I’m all about making the most money and finding ways to make profit. But I also believe in creating VALUE for a person for this profit.

If you are charging a pet rent or pet fee, there must be value. You shouldn’t justify it as the pet causes damage, etc.

That’s what the tenant is responsible for at the end of his lease-with pet or no pet they are responsible for damages.

This post makes me feel a bit uneasy because I feel it is taking advantage of people and the situation. It just feels yucky and greedy. Like hey we know these guys are gonna pay let’s just dry and dry their pockets as much as we can. $50 is a lot to a person a month for a pet fee! ESP if it’s a $1,000 a month.

Guys, I ask that you reflect on all of this, be in the shoes of a tenant who loves his little fluff ball but may not have the means like the landlord does, please be a little more compassionate. I know this is a very profitable business, but sometimes it’s good to use your own heart in some situations. I advise just for the sake of being a good person- don’t charge pet fees or rent unless you are truly adding value to the renter, adding pet facilities or cleaning solely for pet purposes.

America is lost in greed. Let’s be a little bit more of a family. Would you charge your mom (who $50 is a lot) a pet rent fee if she could only afford $1000-$2000 a month? Come one guys.

[Nathan Gesner]

Originally posted by @Wesley W.:

Sadly,  this is not true in NY. Anything collected from the tenant beyond a month's rent is considered an advance,  regardless of it's intended purpose or justification, and regardless of whether it's collected at move in or some other time during the tenancy.

Always consult legal counsel. From what I've read, you can increase the rent as long as you don't call it "pet rent". Just tell the tenant the rent will go up $XX if they have an animal and then your lease states rent is $XXX a month with no mention of increased charges for the animal.

[Daniel Smyth]

Why you SHOULD allow pets.

You allow pets when you wish to pull tenants from a larger tenant pool.
Pets are similar to children, but they do carry more of a liability to the property owner.
My dog was friendly to anyone. He did not like the mail man at all! He was off the chain one day with me in the yard, and my dog heard the mail slot on the house close. immediately he jolted to the front of the house and I heard screams! The screams came from the mail man as he used his bag to protect himself, as my dog wanted him badly! No barking, just a very quick attack. So fast an attack, that the mail man could not even get his dog spray out!

Thank God this mail man had been a good friend for many years. He could have brought me to court, and because my dog did break his skin, my dog may have been killed. And this was a dog you could set your baby next to without fear.

This is when I bought liability insurance for my dog. I could have lost my house AND my dog if the mail man would have brought me to court, and the bite had been worse.

I did some work for a lady with a very small dog recently. I wear thick jeans, and didn't mind that he went for me like he was 100X larger. He did make marks on my ankles after a few attacks, before the owner could remove the dog. I laughed it off, but someone else may not be so understanding and unafraid.

So, a dog is a liability more than children, in my experience. So you need insurance for what COULD happen with animals on your property.

With this in mind, I would add that cost to the non returnable pet fee, and add a pet deposit equal to the insurance deductible and potential pet damage you might expect. ( the fee is yours to pay your extra costs for insurance, and if the deposit is used against pet damages and deductible costs if there is a claim. Be sure to write in your contract that with each claim, the deposit and fee costs will change accordingly.

I would allow pets because I grew up with pets. Dogs have saved my home from intruders more times than I know. It costs a few screens, and sometimes a chair or carpet, but I will always have a dog, and would not lease a home or buy one where I could not have animals.

Issues with dangerous or obnoxious animals can be handled by the law. This was actually addressed in the contract for my first home. If I did anything to bring legal attachments to the house, such as fines or liens, my contract was deemed in default, and all deposits forfeited. That there was enough for me to be careful.

I have my tenants carry renter's insurance with liability insurance as well. This way I am insured no matter what happens.

Good luck!

[Nathan Gesner]

Originally posted by @Jessica-Nicole Ulloa:

Also I’d like to add...

I’m all about making the most money and finding ways to make profit. But I also believe in creating VALUE for a person for this profit.

If you are charging a pet rent or pet fee, there must be value. You shouldn’t justify it as the pet causes damage, etc.

That’s what the tenant is responsible for at the end of his lease-with pet or no pet they are responsible for damages.

This post makes me feel a bit uneasy because I feel it is taking advantage of people and the situation. It just feels yucky and greedy. Like hey we know these guys are gonna pay let’s just dry and dry their pockets as much as we can. $50 is a lot to a person a month for a pet fee! ESP if it’s a $1,000 a month.

Guys, I ask that you reflect on all of this, be in the shoes of a tenant who loves his little fluff ball but may not have the means like the landlord does, please be a little more compassionate. I know this is a very profitable business, but sometimes it’s good to use your own heart in some situations. I advise just for the sake of being a good person- don’t charge pet fees or rent unless you are truly adding value to the renter, adding pet facilities or cleaning solely for pet purposes.

America is lost in greed. Let’s be a little bit more of a family. Would you charge your mom (who $50 is a lot) a pet rent fee if she could only afford $1000-$2000 a month? Come one guys.

Nicole, you live in Hawaii. Why do you pay $8.99 for a gallon of milk when I can buy the same product for $2.88 in Wyoming? Why is the milk cheaper at Walmart than at Albertsons? Why is it cheaper at Albertsons than a Maverick gas station? There are different costs associated with products and services, including convenience. I pay more at the gas station because they don't sell in bulk and because I'm willing to pay a higher price for the convenience of not making another stop at the grocery store.

I manage almost 20% of the rentals in my market, but it's still not enough to dictate prices. The price is determined by demand. The higher the demand, the more people are willing to pay for the product so I raise the prices. People choose to buy the product, or they don't. If nobody buys it, I reduce my price until someone is willing to buy it, then we negotiate the terms and close the deal.

I currently manage 400 rentals and have a 1% vacancy rate. I field hundreds of inquiries every month and the vast majority of the renters have animals. I would be a fool to rent to an animal owner for the same price as a non-animal owner when demand is so high and the risk of additional damage is increased. It's not as if I'm hiding my price and then surprising them with add-on fees. Everything is fully disclosed so they know exactly what they are getting and they can compare my offering to anything else on the market.

I'm curious to know where you work and if you keep prices low to accommodate everyone. Or are your prices based on market demand?

[Nathan Gesner]

@Jessica-Nicole Ulloa here's another example. I love Germaine's Luau. It's about $95 to attend for an adult. I already had to pay $1,000 for my plane ticket and $150 a night for the hotel. Is it fair for Germaine's to charge me the same price as a local that doesn't have the additional expenses I'm incurring during my visit?

[Account Closed]

This is an awesome thread. I do pet friendly exclusively for the last... 9 years and have found value in it. Locally I get $100/ dog & $50/ cat (Max 2 animals) and people are happy to pay it as pet friendly rentals make up about 5% overall. Larger dog friendly make up maybe 1% (tops). All yards are fully fenced, advertising this in the ad helps a lot. Larger yards get a dedicated dog run, this helps keep the grass at least a little bit better looking (though not much). If your local has a pet licensing program, require animal maintain a license. I also don’t take critter under 1 year. If it has a heartbeat, there’s a charge. Screening for me involves one of my on site guys who hates animals meeting it and watching it interact for about 45 min with the owners. Often during the first viewing. Crate training is required. Not “locked in a bedroom”, crate training. Monthly property checks for the first 4 months then after that it’s quarterly.

The comment above about checkups being the means to prevent cat piss problems is absolutely 100% accurate. And after you’ve spent ~50 man hours remediating cat piss you’ll agree. I’ve never had dogs use permanent marker on the walls (yet). Really good discussion.

[Tanya F.]

We've always accepted pets. We charge a pet deposit and almost always return all of it. Since we've required that dog owners come home for midday walks (or hire a walker), we've had zero problems from chewing lonely dogs. In our ads we say "good pets welcome".

The only time we ever had problems with cats were when we had terrible problems with their humans. The humans left the unit and abandoned the cats in it. Awful. We tried wage garnishment, but he'd lost his job. That was before we learned how to screen properly. Now our minimum FICO is 700, and responsible humans pay their bills and are responsible pet owners.

[Shane H.]

@Rachel C.

This "unfortunate millennials" who have been unable to make home ownership a reality, have no put in a valiant effort due to their preconceived notion that it wasn't possible. Millennials have had one of the greatest opportunities to build wealth early in life that has been afforded to any generation in the last hundred years. I just wish I knew more earlier on to have taken advantage of it sooner.

[Kevin McGuire]

@Nathan G. Thanks for the factual approach, there are lots of opinions on this topic! I allow pets, no restrictions. My properties are in Canada which is less litigious so there’s not as big an issue of landlord liability. My tenants with pets are responsible and appreciative. I simply put in more durable flooring. I’ve not had any problems.

One of my properties had cats in it prior to purchase and the cats sprayed the walls and carpets, it was extremely difficult to get out (henceforth referred to as the “the cat pee place” by my property manager). Everyone thinks of dogs as a problem but in my experience cats can cause a more difficult to remedy issue and you may want to adjust your damage deposit accordingly.

[Dan Adams]

@Matt Nico

I use a pet screening process.

Our prices range from 30-50 monthly or 300-500 yearly depending on the pet score. This is pet rent and non refundable. People will pay it. I don’t personally agree with it. But it’s my job to enforce.

[Shane H.]

@Matt M.

"Pets smell" lol I would like to make a very high wager with you. You can bathe on the same day I bathe my dog. And then you can both go without a bath until the people around one of you start complaining about the smell. My money is that you will receive complaints within a few days. And many weeks before my dog. Dogs smell if they aren't taken care of... People smell faster and worse if they don't take care of themselves.