Should you allow pets?
Here is a list of things to do before approving new pet friendly residents or letting them move in.
Get a list of pet species and breeds NOT permitted by your insurance company. Get it in writing and get it on their letterhead.
Make sure the species and breed of pet owned by your applicant are permitted by your insurance carrier before signing the lease or letting them move in.
Require your pet owning applicants to obtain renters insurance with a minimum of $500,000 of liability coverage. Do this before you give them the keys. You want to be listed on their policy as an additional interest in order to be notified if their policy lapses for non payment or gets cancelled altogether. You do not want to be an additional insured.
Establish a "WRITTEN PET POLICY". Run it by your attorney before letting anyone sign it.
Not all pets are dogs and cats. There are fish, rats, snakes, tarantulas and more. Each and everyone of which is available in a pet shop. Have you ever smelled a ferret infested home? To quote Dorothy, "Lions and Tigers and Bears oh my", have been owned as pets at one time or another. One of my residents snuck in a pygmy goat. We considered roasting him on a spit when they left it behind after their eviction.
Just because someone has a pet cat does not mean a bobcat is an acceptable house guest in your rentals. One tenant I read about kept a pet alligator under the sink, until it ate its way out. Let the applicant know which animals your insurance company prohibits by handing them a copy of the letter from your insurance company. Make sure you specify that the insurance company refused to allow those breeds and not you.
Cap the number of pets permitted in your property at two. If you don't you may end up finding the body of a crazy old cat lady with 50 cats in one of your units.
All pets need to be spayed and neutered to prevent a house full of puppys/kittens that they finds to cute to give away.
Request applicants provide a letter from their Veterinarian. Get it on letterhead that includes the following items at a minimum: proof of spay/neuter, sex, breed, shots, vaccinations, county of registration, age, height, weight and color
Proof of annual pet license. Many counties require registration and tagging of pets. If it is required in your county get the annual records sent to you as well. Ask the vet to include you on their reminder to get shots list but keep track of it yourself as well.
Establish inspection schedules. Primarily to look at maintenance and housekeeping. The other thing here is look for and collect all pet damage assessments.
Do not confuse "Service Animals" with pets. They are a whole "nother passel" of headaches. Go to some fair housing classes before you allow pets so you don't get sued for a violation of someone's rights.
Check with all existing tenants to determine if they have allergies to dogs, cats, anacondas or whatever. If your multi-family is an allergen free sanctuary, that opens up another whole market of residents for you. Smoke free / Pet Free is a great advertising sign.
Your "Pet Move in Fee" is a non refundable payment. You notice I said fee and did not use the word deposit. Deposits are inherently refundable. This is an up front cleaning fee. It can be $150 or more at your discretion.
Charge a pet rental fee. $25.00 minimum plus $1.00 per month per pound adult weight over 20 pounds is not unheard of. You do not want horses after all.
Code Words: "My dog is a Lab Mix". This can mean Rottweiler or Doberman depending on who you talk to. Find out the code words in your area.
Good Luck and Good Investing!
Thanks George! I appreciate the thorough reply and got a lot of little gems out of that! I see you are pretty close to me - I'd love to buy you coffee/lunch sometime (I will drive to you) to pick your brain a little more on Pets and everything else! May shoot you a PM. Thanks again for the help and advice, I really appreciate it!
