Tenant Request to Refund Pet Deposit for the Holidays —How Would You Handle This?

Question

Hi everyone,

I’m looking for advice on how to handle a recent request from one of my tenants. Here’s the situation (personal details removed):

The tenant reached out explaining that they’re going through financial difficulties due to an ongoing divorce and lack of child support. They had paid a pet deposit when they moved in, but both of their pets have sadly passed away. They’re now asking if the pet deposit can be refunded or credited toward their January rent to help them during the holidays.

The tenant was apologetic about making this request and acknowledged it might not be typical. However, I should note that this tenant has been late paying rent several times recently, which has added some strain to the landlord-tenant relationship.

How would you approach this situation? Would you consider refunding or crediting the pet deposit under these circumstances? Or would you stick to the lease terms and handle it differently?

Looking forward to hearing how others might navigate this.

Thanks in advance!

Rob

Theresa Harris · Answer

honestly, if you've inspected the place and there is no pet damage, why not give them the pet deposit back?  Remind them that this means they can't get any more pets.

Doug Smith · Answer

No is an answer. I think more and more people have become "users" and take a mile after they've given an inch. Provided you are sticking to the letter and spirity of your rental agreement, you have to set boundaries People that get indignant over you setting boundaries are not worth worried about.

Nathan Gesner · Answer

If it's not a holiday, I would say, "No, the deposit remains in place until your lease ends."

If it's Christmas, I would say, "No, the deposit remains in place until your lease ends. Have a Merry Christmas!"

Jason Wray · Answer

Rob,

Some times around this time of year a good deed can go a long way call it Karma or just being kind.  Either way if it helps someone out especially going through what he mentioned it may add some gratitude and help him avoid further late bills.

You can get more bee's with honey so in some cases it can pay off being a little more lenient.  They may also feel obligated after this gesture to try and make rent on time even going through a hard time.

If you do decide to help them out and rent continues to be late simply have a talk wiht them and remind them that rent helps pay your bills and since you did them a solid ask for the same in return.

Adam Bartomeo · Answer

A deposit is refundable by law. Normally, we would say no and wait until the end of the lease but due to the situation and hardships we would inspect for pets and pet damages. If there weren't any issues than we would refund the money.

Robert Williams · Answer

We’re pleased to share that the tenant paid rent on the 3rd, just before late fees would have applied.

While we sympathized with their situation and wanted to help during the holiday season, we decided to stick with our policy of returning deposits only after move-out. Returning the pet deposit early would have required a home inspection during the holiday break, which would have been inconvenient for us. Additionally, there’s always a risk that any pet-related damages could be hidden under furniture or otherwise concealed, potentially leaving us to cover the costs if the security deposit is fully depleted by other expenses (e.g., damages or unpaid rent). By adhering to our standard procedures, we’re able to maintain consistency and fairness across all tenants, avoiding any perception of favoritism.Thanks again for your feedback! It’s great to have a community to bounce ideas off of.

Robert Williams · Answer

Hello everyone,

Thank you all for taking the time to share your thoughts and advice regarding my tenant’s recent request. Your perspectives have been incredibly helpful as I navigated how to handle the situation.

Here’s how I just responded to the tenant:

I expressed sympathy for their situation and the loss of their pets. I explained that the pet deposit is held until the end of the lease to cover potential damages, so it cannot be reimbursed or credited toward rent at this time. However, I emphasized the importance of open communication and encouraged them to reach out proactively if they foresee any challenges with future rent payments. Additionally, I mentioned that I had sent them a small holiday gift card as a token of appreciation (which I send to all of my tenants) and wished their family a peaceful and warm holiday season.

Your insights helped me craft a response that balanced kindness with maintaining boundaries, and I truly appreciate it. I wish you all continued success in your real estate journeys and hope you have a wonderful holiday season.

Best regards,Rob

Chris Seveney · Answer

If you are gonna say no you can say it's policy to not provide deposits back until the end of the lease and we don't make exceptions unfortunately.

you also did not note but how much is the pet deposit ?

Robert Williams · Answer

Thanks again for the feedback all!

For perspective, the rent is $2,500 and the pet deposit is $500.  We also have a security deposit of one month’s rent.  Typically, we steer away from pet deposits in preference of pet rent / fee.  However, we are taking over from a PM to self-manage and are inheriting the current setup.

Our biggest concern is that this first communication from the tenant was a sob story asking for $500 back/off rent.  This tells us that the tenant may be struggling financially and will have even more trouble paying the rent in the future.  If the tenant is truly struggling due to a life event, the sooner we can work together to get her somewhere she can afford (and not have an eviction or negative credit report on record), the better for all.  Hopefully, this will be a non-event.  Either way, we’ll know in a week, and I’ll keep this forum updated.

Andrew Syrios · Answer

Our pet deposit is non-refundable which is what I generally would recommend (assuming your state and local laws allow that). Generally, I would recommend not making any such changes to your leases and the way rent is handled for humanitarian reasons. I would say the same for employees who need say a second advance on their wages (we allow one).

I am willing to make a personal loan if an employee really needs it and you could consider doing it that way with a tenant in need. It would certainly be a nice thing to do. But you want your policies to be fairly firm. Indeed, to stay in compliance with fair housing, you need to treat each tenant the same, so that's something to keep in mind.

Tenant Request to Refund Pet Deposit for the Holidays —How Would You Handle This?

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