Pet Deposit / Pet Addendum

[Kasey Destache]

Hi everyone,

I’m getting ready to rent out a back house in Los Angeles 2 miles from the beach and next door to a lovely park for $1650 per month (water and gas included). They will also get half of our semi-private backyard. This is my first time acting as a landlord for my parent’s house so I just want to make sure I’m following the law and being fair, especially during these unprecedented times. I’m also using the BP CA Lease Agreements, forms and pet addendum. We are allowing small pets.

I read somewhere that you are not allowed to charge more than 2 months rent for security deposit and first months rent by CA law. But I also need to charge the refundable pet deposit which is $500. So my question is if someone were to move in on the 1st of March 2021, am I able to charge $1650 (first months rent) + $1650 (security deposit) + $500 (refundable pet deposit), which in total is $3800? I know I need to prorate if they move in the middle of the month but I just want to use the above example and numbers to receive a definite answer. 

As I’ve mentioned, I just want to make sure I’m following the law but I also want to make sure we are covered if there is any damage caused by the pet(s).

I also read that a better option might be to charge a non-refundable pet fee of $50 per pet per month. I'd love to hear your thoughts on this. 

I’d really appreciate any feedback! 

Thanks! 

[Nathan Gesner]

Kasey, the first thing you should do is purchase "Every Landlord's Legal Guide - California Edition" by NOLO. It's an expensive book but it's big, packed full of everything you need to know to successfully manage, and it includes all the current laws for California. I've been reading investment books for 20 years and it's the single best resource your money can buy. Get it today, read it, highlight it, learn it.

I disagree with refundable pet deposits. It's really not enough to cover damages and you have to give it back. I prefer a rent increase based on the type/size of the animal. I do not call it "pet rent" or "non-refundable pet fee". Just increase the rent based on the animals. $50 a month is very, very easy to charge. In your market, $100 per animal is probably more reasonable. If rent is normally $1,650 per month, increase it to $1,850 for two dogs. That's an additional $2,400 in rent income per year that you can apply towards damages or just keep it as additional income if they are good renters.