About 70% of homeowners in the US own pets. As a landlord, you can’t simply ignore this number. If you restrict tenants with pets, you will find it difficult to keep your unit occupied. This is why you should think about allowing pets in your rental property. Read this guide, and we will share the benefits and drawbacks of doing it.
Pros and Cons of Allowing Pets in Rental Properties
All landlords want long-term tenants who take good care of their rental property. Your pet policy can help weed out many unsuitable applicants. There are pros and cons to allowing pets, so consider both sides before making a decision.
Pros of Allowing Pets in Your Rental
- You’ll have more applicants
The majority of renters own pets. By allowing pets in your rental, you significantly increase your applicant pool. More applicants mean you have more options, and your unit stays vacant for a shorter period of time.
- Pet owners often have longer tenancies
As mentioned before, it’s difficult for renters with pets to find a place that accepts them. When they do find a landlord who allows pets, they’re likely to stay longer. Fewer turnovers save you money on cleaning, ads, and repairs between tenants.
- You can charge pet rent
Pet-friendly rentals are extremely desirable nowadays. Many landlords charge their tenants a monthly pet rent on top of their regular rent. Even if you don’t charge pet rent, your rental will compete more for pet sitters.
- Pet owners are typically responsible
This isn’t always the case, but many pets take on the responsibility of caring for another living thing. Pet owners are typically more organized and aware of their responsibilities as tenants. If they take care of their pet, they’ll likely take care of your rental.
- You won’t fall behind your competition
Unless you live in a city where no one owns pets, chances are some of your competition allow pets. If your renter wants a dog, and the unit next door allows dogs, where will they choose to rent? Enforcing a no-pet policy may cause you to lose great tenants to your competition.
Cons of Allowing Pets in Your Rental
- Pets can cause damage to your property
This is the most common reason landlords deny tenants with pets. Pets can ruin carpet, scratch wood, and soil upholstery. Pets also have accidents from time to time. Urine can seep into the subfloor, causing odors and damage that goes beyond normal wear and tear.
- You may receive more noise complaints
Dog owners should be responsible enough not to let their dog bark all day. However, if your rental is in a large complex, one dog can cause problems for your other tenants. Noise complaints can be a hassle to deal with.
- Allergies could keep units unrented
Pet dander clings to carpets, walls, vents; you name it. If one of your future tenants is allergic to pets, you may need to deep clean your rental before they move in. Now you’ve just spent money and time you wouldn’t have if you hadn’t allowed pets.
- Your liability and insurance may cost more
Some insurance companies charge more if you allow certain breeds of dogs on your property. Also, dog bites are a legitimate legal risk you’ll need to consider. Make sure to check with your insurance company before you change your pet policy.
- Some pet owners are irresponsible
Some tenants allow their pets to mess up the rental and don’t clean up after them. They might not report damage that their pet caused, leaving you with a hefty bill at move-out.
How to Create a Pet Addendum
Can renters be evicted for having a pet, especially without prior written authorization from the landlord? No, but this is where the pet addendum would come into play. A pet addendum is an amendment to your lease that outlines pet-related rules in writing. The pet addendum can protect you and your tenant. If you allow renters to have pets, you should always use a pet addendum.
What to Include in a Pet Addendum
- Description of Pet Allowed: Include the animal type, breed, weight, name, and age. This keeps you from being generic like “dogs allowed”. It also stops tenants from bringing in unauthorized pets.
- Number of Pets: Specify how many pets are allowed. One or two pets are typical for most rental properties.
- Restricted breeds/types: Remember, some insurance companies restrict certain breeds of dogs. Decide whether you want any restrictions on size or breed, and note them here.
- Deposit and Pet Rent: Include specific dollar amounts. Clarify what is refundable and what isn’t.
- Tenant obligations: Make it clear that the tenant is responsible for their pet 100% of the time. They need to ensure the pet does not cause damage and will immediately notify you of any problems.
- Rules for common areas: If you have a multi-family lease, specify where pets are allowed to go and not allowed to go. You can require leases in common areas.
- Right to revoke clause: Include a clause that allows you to revoke tenant pet privileges if they violate lease rules.
- Damage caused by pet: State that any damage caused by a pet is the responsibility of the tenant, exceeding normal wear and tear.
Use easy-to-read and understand language. Have both parties sign and date the addendum. Make sure the pet addendum is attached to the lease.
Setting the Price for Pet Deposit
Don’t gouge your tenants with an excessive pet deposit, but don’t leave your rental vulnerable either. Finding the balance between the two can be tricky, but here’s how to price it correctly.
● Research local laws
Many states limit the amount a landlord can charge for a security deposit. This cap includes pet deposits as well. Other states have different regulations regarding pet deposits. Learn the laws in your state before deciding on an amount.
● Require a refundable pet deposit
A typical refundable deposit is $200-$500 per pet. If there is no pet damage at move-out, you’ll refund it. Charge this in addition to any monthly pet rent.
● Charge monthly pet rent
In addition to a refundable deposit, it’s common to charge a monthly pet rent of $25-$75 per pet. This fee isn’t refundable. Think of it as extra wear-and-tear money to help pay for having a pet on the rental.
● Factor in your property type
Carpet and fabric surfaces are more expensive to clean once damaged by pets. If your rental has tile or vinyl plank floors, you may charge less.
● Stay consistent
Charge the same fees to every tenant. This ensures you aren’t opening yourself up to fair housing issues.
Consult with a knowledgeable rental management team in Texas to understand your rights regarding pet deposits and other restrictions.
Final Words
Renting your property to pet owners can be a great boost to your business when managed properly. You can attract a larger pool of potential renters, make more money, and have longer tenant retention. However, you’re also increasing your risk as a landlord. That risk can be mitigated by setting clear rules and ensuring proper documentation is in place. The demand for pet-friendly rentals is high. If you have the proper infrastructure in place, you can capitalize on that.