Pet Fee at Move In & Pet Rent Monthly

[Lorien Rollins]

In my experience managing apartment communities, we have charged renters a pet fee (nonrefundable) at move in AND a monthly pet rent. 

I'm renting my SFH for the first time and am unsure how to charge the future renters for their two (larger) dogs. What do you all recommend for the Denver NC area? I was thinking $200 move in fee for each dog and $20 monthly per pet. Reading past forums but unsure of current conditions.

[Kevin Sobilo]

@Lorien Rollins, I appreciate you calling it a pet "fee" since its nonrefundable. So many people call it a pet deposit and confuse folks because other deposits they give are refundable.

First off, what is your goal with allowing pets? My goal isn't to make additional income, its to attract and KEEP good tenants. Finding pet friendly rentals is a challenge. So, a pet owner might be MORE reluctant to move and decide to stay longer. Less vacancy means MORE money for me because vacancy/turnover is expensive. So, that is my goal.

Also, for an average tenant, move-in money is a struggle because it can be a lot for them to come up with at once. So, I also charge money at lease signing in addition to pet rent for that reason.

At lease signing, I charge a $50 pet cleaning fee (nonrefundable) as I anticipate some extra cleaning at the end. I only require my units be broom clean when turned back over to me so there generally is some pet related cleaning to be done. I also charge a $250 pet deposit (refundable). That is a flat $250, not per pet. Again, I'm not trying to make money on pets.

Then I also charge $25/month per pet in pet rent. Obviously that is not refundable.

You would think I will make money on the pet rent. However, the way I look at it is that the money I collect in pet rent will offset any monies I cannot collect from this tenant OR OTHER tenants beyond what their pet deposit covered because there will be instances where more damage occurs. So, in this way the pet rent is acting as an additional insurance not only for damage by this tenant's pets but also for other tenants pets against damage.

I feel as though I do still end up ahead but I supposed on serious set of damages could swing the pendulum the other way. Overall I'm satisfied with my approach because I feel reasonably well protected and that tenants will want to stay knowing how hard it is to find other pet friendly rentals.

On a side note, I don't allow larger pets. It helps be avoid the issue where insurance companies won't cover dogs on their "dangerous dog list" living on the property. I don't have to police breeds just size which is more cut and dry. 

[Lorien Rollins]

@Kevin thank you so much for replying! This is great. You make a wonderful point, I want to attract and retain GOOD tenants, that's my goal. My SFH is in a large development, super pet friendly, etc. I own a corner lot (.25 acre with a nice backyard), the tenants were drawn because of this too. The tenants moving in to my SFH this month are wonderful, as I've already met with them a few times. They have two labs, I don't think I want to charge an astronomical pet fee at move in, which is why I turned here. I like the idea of a pet deposit for the tenants and the pet cleaning fee upfront!

Have your tenants responded well to this?

[Kevin Sobilo]

Quote from @Lorien Rollins:

@Kevin thank you so much for replying! This is great. You make a wonderful point, I want to attract and retain GOOD tenants, that's my goal. My SFH is in a large development, super pet friendly, etc. I own a corner lot (.25 acre with a nice backyard), the tenants were drawn because of this too. The tenants moving in to my SFH this month are wonderful, as I've already met with them a few times. They have two labs, I don't think I want to charge an astronomical pet fee at move in, which is why I turned here. I like the idea of a pet deposit for the tenants and the pet cleaning fee upfront!

Have your tenants responded well to this?

@Lorien Rollins, yes I really have never had any push back from tenants or applicants about what I charge.

I think the reason my policy is palatable is that they don't get charged too much up front and they aren't being gouged on pet rent either. There are places charging $500 pet deposits/fees and $50/month per pet pet rent. Not uncommon at all. Plus some of the pet deposit/fees are nonrefundable fees where mine is refundable.

So, the tenant sees what I charge as reasonable and justifiable. It also is easier for them to handle since part is up front and part as you go. If we discuss the fees, I may even tell them bluntly that I'm not trying to make money on the pets. I just want to protect myself and allow pets to attract and keep good tenants. Its no secret and I feel like if the tenant understands what I'm doing and why they are less likely to ever feel aggrieved.

Also, as a side benefit, the additional pet deposit money could even be applied to non pet related damages. I consider it a way to collect more overall deposit. So, I am also better protected against other possible damage. 

[Nathan Gesner]

Every Landlord should evaluate this for themselves.

I personally charge for two reasons: mitigate risk and increase revenue. I see nothing wrong with either of them.

One bad pet can easily cause thousands in losses. Torn blinds, scratched doors, torn carpet, burned or dug-up lawn, odors, chewed trim, and more. I think it is completely reasonable to mitigate your risk by charging extra, but it's very hard to charge enough to cover every potential problem.

I also see nothing wrong with earning a profit. Tenants understand the risk they pose with pets. They are also happy to pay extra to keep their animal with them. If you find a healthy balance, these tenants will hand you cash with a smile on their face!

I'm always evaluating and adjusting. My current policy is to assess a risk level based on the specific animal. I charge an up-front fee based on that risk level, then $25 per month for each animal. For example, a high-risk animal would be $700 up front, $25 per month. A low-risk animal is $200 up front, $25 per month. This is per animal, non-refundable, and the charge remains for the full term of the lease even if the animal is removed at some point during the lease. So the lowest I charge is $500 and the highest is $1,000. This sounds expensive, but the higher rate is reserved for high-risk animals/tenants and if we're going to accept the risk, they are going to pay for it.

In my experience, good tenants are good pet owners that will happily pay more, stay longer, and take care of the property. In the past ten-ish years with up to 400 rentals, I can only remember two that had pet damage that exceeded the deposit (both cat odor that required major cleaning, painting, and carpet replacement). Tenants that leave owing money are usually due to unpaid rent, general cleaning, abandoned furniture, etc.

[Evan B.]

Quote from @Kevin Sobilo:

@Lorien Rollins, I appreciate you calling it a pet "fee" since its nonrefundable. So many people call it a pet deposit and confuse folks because other deposits they give are refundable.

First off, what is your goal with allowing pets? My goal isn't to make additional income, its to attract and KEEP good tenants. Finding pet friendly rentals is a challenge. So, a pet owner might be MORE reluctant to move and decide to stay longer. Less vacancy means MORE money for me because vacancy/turnover is expensive. So, that is my goal.

Also, for an average tenant, move-in money is a struggle because it can be a lot for them to come up with at once. So, I also charge money at lease signing in addition to pet rent for that reason.

At lease signing, I charge a $50 pet cleaning fee (nonrefundable) as I anticipate some extra cleaning at the end. I only require my units be broom clean when turned back over to me so there generally is some pet related cleaning to be done. I also charge a $250 pet deposit (refundable). That is a flat $250, not per pet. Again, I'm not trying to make money on pets.

Then I also charge $25/month per pet in pet rent. Obviously that is not refundable.

You would think I will make money on the pet rent. However, the way I look at it is that the money I collect in pet rent will offset any monies I cannot collect from this tenant OR OTHER tenants beyond what their pet deposit covered because there will be instances where more damage occurs. So, in this way the pet rent is acting as an additional insurance not only for damage by this tenant's pets but also for other tenants pets against damage.

I feel as though I do still end up ahead but I supposed on serious set of damages could swing the pendulum the other way. Overall I'm satisfied with my approach because I feel reasonably well protected and that tenants will want to stay knowing how hard it is to find other pet friendly rentals.

On a side note, I don't allow larger pets. It helps be avoid the issue where insurance companies won't cover dogs on their "dangerous dog list" living on the property. I don't have to police breeds just size which is more cut and dry. 

 I agree with everything you said, thanks for that information and your personal experience with this. I don't charge a monthly pet rent, but I did request a $300 deposit (as insurance for possible damage)

My rental doesn't have expensive flooring or anything that will get damaged and cost a lot to replace, so I feel comfortable with this setup. Maybe if I upgrade stuff in the future, I will ask for a monthly pet rent, to cover damage (doors are expensive lol)

[Tim Miller]

@Lorien Rollins $200 non-refundable fee sounds reasonable and the $20 per pet is very reasonable. I was looking at a few other rentals in your area, one is charging $300 1st pet $500 for two pets. I think your in great shape with your pet fee and rent. Good luck.

[Melanie Thomas]

PetScreening.com is employed by us to evaluate the risk level of each pet, using a grading scale of one paw to five paws. I'm happy to share our very detailed screening criteria upon your request, and it's important to note that this service is provided to the landlord at no cost. Feel free to reach out to me if you're interested! Good luck & happy investing! 

[Julian Colvard]

What you have in mind is fine and pretty standard. I give my tenants an option: pay monthly or one fee upfront. The monthly amount adds up to be 50% more than the fee. 

example : 300 upfront fee or 450 paid over 12 months (37.5) which is added to their rent. They almost always go for the monthly payment. I do not state the total amount the monthly payment adds up to however when presenting them with the option.

[Kevin Sobilo]

Quote from @Evan B.:

Quote from @Kevin Sobilo:

@Lorien Rollins, I appreciate you calling it a pet "fee" since its nonrefundable. So many people call it a pet deposit and confuse folks because other deposits they give are refundable.

First off, what is your goal with allowing pets? My goal isn't to make additional income, its to attract and KEEP good tenants. Finding pet friendly rentals is a challenge. So, a pet owner might be MORE reluctant to move and decide to stay longer. Less vacancy means MORE money for me because vacancy/turnover is expensive. So, that is my goal.

Also, for an average tenant, move-in money is a struggle because it can be a lot for them to come up with at once. So, I also charge money at lease signing in addition to pet rent for that reason.

At lease signing, I charge a $50 pet cleaning fee (nonrefundable) as I anticipate some extra cleaning at the end. I only require my units be broom clean when turned back over to me so there generally is some pet related cleaning to be done. I also charge a $250 pet deposit (refundable). That is a flat $250, not per pet. Again, I'm not trying to make money on pets.

Then I also charge $25/month per pet in pet rent. Obviously that is not refundable.

You would think I will make money on the pet rent. However, the way I look at it is that the money I collect in pet rent will offset any monies I cannot collect from this tenant OR OTHER tenants beyond what their pet deposit covered because there will be instances where more damage occurs. So, in this way the pet rent is acting as an additional insurance not only for damage by this tenant's pets but also for other tenants pets against damage.

I feel as though I do still end up ahead but I supposed on serious set of damages could swing the pendulum the other way. Overall I'm satisfied with my approach because I feel reasonably well protected and that tenants will want to stay knowing how hard it is to find other pet friendly rentals.

On a side note, I don't allow larger pets. It helps be avoid the issue where insurance companies won't cover dogs on their "dangerous dog list" living on the property. I don't have to police breeds just size which is more cut and dry. 

 I agree with everything you said, thanks for that information and your personal experience with this. I don't charge a monthly pet rent, but I did request a $300 deposit (as insurance for possible damage)

My rental doesn't have expensive flooring or anything that will get damaged and cost a lot to replace, so I feel comfortable with this setup. Maybe if I upgrade stuff in the future, I will ask for a monthly pet rent, to cover damage (doors are expensive lol)

 @Evan B. It isn't just flooring to be concerned about. Dogs will chew on the bottoms of doors, cabinets, moldings, etc. Pets will also urinate on moldings and walls. Smells can linger even with cleaning hard surfaces. There are lots of different kinds of damage pets can do.

Also, I like the pet rent to cover me against excess damage overall.

For example tenant #1 has pets and is a great tenant with no damage. Over the course of their 2 year tenancy they paid $600 in pet rent. Tenant #2 has pets and despite the pet deposit and pet rent paid, the damage caused exceeds what they paid by $500. 

I will of course get a judgement against tenant #2 if they don't pay the $500 but chances of collecting are not great. However, overall I'm still ahead $100 between the 2 tenants. That type of scenario WILL happen and when it does I won't be upset about it. I'll know that I've collected some pet rent along the way and am still even or ahead money wise for allowing pets. 

[Catherine Jacoby]

Quote from @Nathan Gesner:

Every Landlord should evaluate this for themselves.

I personally charge for two reasons: mitigate risk and increase revenue. I see nothing wrong with either of them.

One bad pet can easily cause thousands in losses. Torn blinds, scratched doors, torn carpet, burned or dug-up lawn, odors, chewed trim, and more. I think it is completely reasonable to mitigate your risk by charging extra, but it's very hard to charge enough to cover every potential problem.

I also see nothing wrong with earning a profit. Tenants understand the risk they pose with pets. They are also happy to pay extra to keep their animal with them. If you find a healthy balance, these tenants will hand you cash with a smile on their face!

I'm always evaluating and adjusting. My current policy is to assess a risk level based on the specific animal. I charge an up-front fee based on that risk level, then $25 per month for each animal. For example, a high-risk animal would be $700 up front, $25 per month. A low-risk animal is $200 up front, $25 per month. This is per animal, non-refundable, and the charge remains for the full term of the lease even if the animal is removed at some point during the lease. So the lowest I charge is $500 and the highest is $1,000. This sounds expensive, but the higher rate is reserved for high-risk animals/tenants and if we're going to accept the risk, they are going to pay for it.

In my experience, good tenants are good pet owners that will happily pay more, stay longer, and take care of the property. In the past ten-ish years with up to 400 rentals, I can only remember two that had pet damage that exceeded the deposit (both cat odor that required major cleaning, painting, and carpet replacement). Tenants that leave owing money are usually due to unpaid rent, general cleaning, abandoned furniture, etc.

How are you evaluating the risk and communicating that?

I'm preparing to rent out our SFH and we will be allowing up to 2 dogs, no size restriction (no cats), but we have not determined our pet fee or rent policy yet. We have a 70 lb rescue dog who is the sweetest best behaved dog we've ever encountered that hasn't damaged anything of ours in 4 years of owning him and tolerates the antics of a 2 year toddler with more patience than I have. We don't know his background but he'd likely be a breed restriction just by looking at him. He poses far less risk than some 10 lb terrors we know around our neighborhood. So I've been reluctant to go with an arbitrary risk assessment screening for a dog. Under those screenings, our dog would most likely not be accepted into any rental... and we would rent to any dog like ours 10/10 times.

[Kevin Sobilo]

Quote from @Catherine Jacoby:

Quote from @Nathan Gesner:

Every Landlord should evaluate this for themselves.

I personally charge for two reasons: mitigate risk and increase revenue. I see nothing wrong with either of them.

One bad pet can easily cause thousands in losses. Torn blinds, scratched doors, torn carpet, burned or dug-up lawn, odors, chewed trim, and more. I think it is completely reasonable to mitigate your risk by charging extra, but it's very hard to charge enough to cover every potential problem.

I also see nothing wrong with earning a profit. Tenants understand the risk they pose with pets. They are also happy to pay extra to keep their animal with them. If you find a healthy balance, these tenants will hand you cash with a smile on their face!

I'm always evaluating and adjusting. My current policy is to assess a risk level based on the specific animal. I charge an up-front fee based on that risk level, then $25 per month for each animal. For example, a high-risk animal would be $700 up front, $25 per month. A low-risk animal is $200 up front, $25 per month. This is per animal, non-refundable, and the charge remains for the full term of the lease even if the animal is removed at some point during the lease. So the lowest I charge is $500 and the highest is $1,000. This sounds expensive, but the higher rate is reserved for high-risk animals/tenants and if we're going to accept the risk, they are going to pay for it.

In my experience, good tenants are good pet owners that will happily pay more, stay longer, and take care of the property. In the past ten-ish years with up to 400 rentals, I can only remember two that had pet damage that exceeded the deposit (both cat odor that required major cleaning, painting, and carpet replacement). Tenants that leave owing money are usually due to unpaid rent, general cleaning, abandoned furniture, etc.

How are you evaluating the risk and communicating that?

I'm preparing to rent out our SFH and we will be allowing up to 2 dogs, no size restriction (no cats), but we have not determined our pet fee or rent policy yet. We have a 70 lb rescue dog who is the sweetest best behaved dog we've ever encountered that hasn't damaged anything of ours in 4 years of owning him and tolerates the antics of a 2 year toddler with more patience than I have. We don't know his background but he'd likely be a breed restriction just by looking at him. He poses far less risk than some 10 lb terrors we know around our neighborhood. So I've been reluctant to go with an arbitrary risk assessment screening for a dog. Under those screenings, our dog would most likely not be accepted into any rental... and we would rent to any dog like ours 10/10 times.

I love dogs of all kinds, but the liability is an issue. In a town I invest in several years ago there was an older gentleman on his porch who got bit by a dog. He died as a result. The family sued not only the owner but also the landlord of the rental which was several blocks away I believe.

If your insurance does not cover the breed, you on the hook. Maybe not legally liable, but you'll be paying hefty legal bills to fight it and perhaps paying a settlement in the best case! Worst case, you end up losing your properties as a result.

When you rent to a tenant, you don't know them or the pet. I'm not sure I would trust a meet & greet to take such a big chance with. That's why I personally only allow small pets and reduce the risk greatly.

https://www.timesleader.com/news/611943/lawsuit-pit-bull-bit...

[Nathan Gesner]

14 years of experience with hundreds of pet owners, plus networking and learning from others. It ain't easy, but you can figure it out.