This has been a subject that has been debated for as long as I can remember; whether or not to allow your tenants to have pets. What I have always found, is that it really doesn’t matter what your policy is. They are probably going to bring them whether or not you actually allow pets.
When I bought my first couple of rental properties, I was very clear that I didn’t want pets in my houses. I didn’t want to have to replace the carpet after each tenant because of pet damage. It was always in the lease, and I always discussed my policy with the tenants. I learned pretty quickly, that there is a segment of the population that will agree to anything in the lease while they continue to do whatever they want to do.
Pet Damage
While having to replace the carpet was the biggest problem and the biggest expense, pets can do many types of damage to your property.
They have:
- Chewed the corners off cabinets
- Chewed the vinyl flooring in kitchens and baths especially at the seams and doorways
- Doors, window sills and screens have been damaged by clawing and chewing
- One tenant removed the receptacle covers to paint, and the dog chewed a hole big enough to go into the next room.
Re-thinking my policy
It didn’t take very long for me to figure out as a new landlord, that my “policy” wasn’t working. So I had to either be unhappy all the time, or change my policy. That’s what I did. I changed my policy.
If you don’t allow pets, you will lose a certain group of potential tenants before they even look at your house. Those folks that love their pets almost as much as they love their children won’t rent your property in most cases if they can’t bring their pets. That may be a choice that some landlords make.
What is even worse in my opinion is that some of these same folks will just say they don’t have any pets and bring them anyway upon hearing you don’t allow pets. When this happens, you often end up with a lot of damage you didn’t count on having to repair. And, you won’t have that damage deposit to help pay for it.
How I solved the problem
In the end, each landlord has to decide for himself whether or not to allow pets in their rental property.
Ultimately I decided to allow pets since the tenants always ended up with them anyway. If I told them that their pets were welcome that gave me the opportunity to charge for them. I could also have “the talk” with the tenants. I wanted them to understand that while the pets were welcome, they would be responsible for any damage that they did above and beyond the upfront or monthly fees I charged. They were also told that they were getting a “flea free home” to move into, so if there were fleas when they moved out, those charges would also be their responsibility.
Another thing that I did was to make some changes in the lease. I put in clauses that said that if they acquired a pet after they moved in that wasn’t on the lease, they had to pay the entire up-front pet fee plus the additional monthly fee of $20.00 from the beginning of the lease. What this did was lead to a lot of confessions at the lease signing — confessions about the pet(s) that they actually had, and I was able to go ahead and get the lease set up properly from the very beginning.
Whatever you decide is right for your business, will be the right answer for you. This might also be one of those times where a little trial and error is involved before you reach a decision.
What’s your pet policy for your rental property?
Photo: Wendy
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Article Author: Sharon VornholtSharon has written 25 articles for us.
Visit Sharon's Website: http://LouisvilleGalsRealEstateBlog.com
Sharon has been investing in real estate since 1998. She owned and operated a successful home inspection company for 17 years. In January of 2008 she took the leap of closing her business to become a full time real estate investor.
Joshua Dorkin
{ 32 comments… read them below or add one }
I agree. I allow pets, but charge extra fees for them. If potential tenants have dogs I tell them they must either show me proof of obedience training or they need to bring the dogs at the time of application so I can see they are well trained. You’d be amazed at how many tenants turn down their own pets because they know they aren’t behaved.
That’s a great idea. I always ask what type/breed of dog it is also since insurance companies won’t cover some of breeds of dogs. Having the potential tenant bring the dog in lets you see for yourself exactly what type of dob it is.
I would also check with the potential tenants as to the breed/age of the dog as well. As Sharon mentioned, most insurance companies won’t even insure homes with certain breeds (with more aggressive histories). Also, a teething/potty training puppy is a lot more likely to cause damage to a property than a matured dog. One possible solution to this: allow dogs (with an additional deposit, of course), but not puppies. This doesn’t alienate the majority of pet-owners, but will deter renters from using your income property as a potty-training grounds.
Jamie – Puppies are definitely bad news. Like Keith said, you can learn a lot about the dog just by having the tenants bring it by.
They sign a Pet Policy and Pet Rider which is attached to their lease. This form can be gotten from Office Supply Stores or o Online. The Pet Policyh spells outall terms and conditions. I also kept the pets to “cats” as dogs can attack other humans
Carole – I had a “Pet Addendum” right in my lease. Everyone should be sure to address pets in some manor.
I completely agree with allowing pets. Like you said, most people think of their pets as part of their family and you could lose a great tenant if you deny them because they have an animal. Of course you should have extra fees etc. Being an owner of three large dogs, I don’t like the breed restriction idea because some of the sweetest and well mannered dogs are considered “dangerous,” and I would have to do it on a case by case basis unless there was an insurance issue.
Stephen – I never found that big dogs were really more of a problem than smaller dogs. It’s more about the owner and what they expect from the dog.
I do know that if you don’t let them have their pets, they’ll just sneak them in anyway. So you might as well get some cash from them to help take care of the damage. My insurance company won’t insure tenants that have some breeds of dogs that they consider aggressive. Everyone should check with their insurance company to see if they have any restrictions.
Also, cat urine was a big problem for me.
Unfortunately breed restrictions have a lot to do with the insurance companies. I personally own a Rottweiler who is the sweetest animal on earth. My insurance company will allow me to have a Rotty in my personal residence. However, they will not cover “dangerous” breeds under my landlords policies.
Keith – I think that is pretty standard.
i found out that 8 out of 10 people that come to see the houses have pets. it amazes me that people that try to bargain to reduce the price of the rent go ahead and get a dog, which actually increases their lease and makes it harder for them to find a nice place.
but anyway, i quickly learned that i have to accept pets or else i would lose 80% of the calls. so, we started charging $25/month extra, but that’s not enough. a new carpet in a 1k sq. ft house costs around $1100 and $25*12 is only $300. so if they leave in one year, you are spending $800 out of your pocket.
then i started asking for $55 for one pet and $80 for 2 or more monthly fee. but now i have on house with no takers. My realtor tells me that that’s because of the high pet fee. They recommended a one time cleaning fee of $350.
I had the same problem. I had a one time pet fee of 1/2 the deposit ( that wasn’t enough) in addition to the deposit, plus $25.00 a month. The only way you broke even was if they stayed a couple of years. It’s usually a “lose lose” for landlords.
I don’t have a problem with pets. I have 2 dogs and they are a part of my family. Why to pay more for the dogs?
I have dogs also Lucie, but I am a responsible pet owner. We spent a great deal of time housebreaking them and keeping them from chewing the house down. When they were puppies and wanted to chew everything, I crated them when I left the house.
I can tell you from experience, the vast majority of tenants aren’t that way. I have had dogs chew big holes vinyl flooring in the kitchen and bathroom. One dog chewed the whole corner of the kitchen cabinet and the door. They can really do a lot of damge.
This is an eye-opener for me. Pets are not yet a big issue in the our country (Philippines) but is likely to become one as the pet industry grows. This is a great idea to add to our lease contracts.
Good thing carpets are not popular here…
Ronald –
Pets are definitely a big issue here. Folks love their pets.
A lot of landlords have been putting different types of flooring in their rentals other than carpet such as laminate and tile. If you can get away from carpet, it will save you money in the long run for sure.
How is the rental market in the Philippines?
the only problem with that is when dogs pee on the laminate and if it gets in between the joints and under the laminate, then the laminate floor needs to be torn out. i am not certain it can get underneath the laminate, but if it does, it’s bye bye laminate.
George – Someone else told me that they also had a problem with laminate.
I know one section 8 landlord that got so fed up with the whole flooring issue, that he put the old fashioned 12×12″ rubber tiles (they used to use in offices) throughout the entire house in each one of his houses. He bought boxes and boxes of the tiles the same color. He used them in all his houses, and he got rid of all his flooring issues.
The very worst problem I had with a tenant and carpet was one guy that brought his motorcycle into the living room and changed the oil right on the carpet. He did this just before moving out of the house without paying his rent for the month.
I do not allow cats period. Never had any luck with those overgrown rats (cat urine is one of the hardest odors to remove) Dogs are allowed with a $250 deposit for each dog and $20/mo fee per dog. I have one tenant with 3 dogs in a 700 sq ft house. That place is very clean and only minor damage which the deposit will cover. That said, they snuck the dogs in. Random inspections caught that real quick. Sec8 can be very helpful when resolving this issue.
Another option I have heard of is telling tenants via lease disclosed pets are $20/mo, discovered pets are $40/mo. I haven’t tried it, but have heard it works to get them to tell you right away.
Jason
Jason –
Your pet charges were similar to mine. They helped cover the damage, but there was almost always more damage that the deposit they paid. I like your idea about “discovered” pets. Just by telling them you have that policy will cause some of them to “confess” before they move in. And yes, cat urine is almost impossible to remove. A lot of tenants hide their cats. It’s easier because they can keep them inside.
Totally agree! Pets are great but extra fees should be charged for potential damages. In my country, there are no such surcharges. I think it necessary to create a clean and comfortable neighborhood.
Jason – Extra fees should definitly be charged. It has been my experience that there is almost always damage.
I recently reviewed the lease contracts my company is using. We resolved the issue almost identically to the way you described! Only thing I would add is that in Ohio, whether you call the up-front fee a “deposit” or a “fee” is very important. I make sure our tenants understand that the “Pet Convenience Fee” is not refundable and that this is clear in the lease. If it were a “Pet Deposit” they would be entitled to the return of the money–above and beyond damages, as you pointed out. Good read!
Andrew-
I’m glad you pointed that out. We have to do the same thing here. It should definitely be a “fee” not a deposit.
We spent quite a bit of time in our office discussing pet policy. In our market (Chicago Suburbs) most investors are not allowing any pets at all. Due to this being the case there is a large demand for rental units that do allow animals. Therefore, we usually suggest to our investor clients that they do allow animals. We especially recommend this when a client that has carpeting that already could use to be replaced. “What are you trying to protect, when the carpet is already in poor condition”. We also suggest that our investors ask applicants with pets to give a larger security deposit as appossed to a pet deposit. What happens when that pet no longer lives there? Well, the tennant wants their deposit returned… With the increased security deposit, the investor gets to keep that money as long as the family is in the residence. Thank you from Chicago!
Hi Rob –
Thanks for your input. I always charged a deposit and a non-refundable pet “fee” in addition to $25.00 per month per dog or cat like Andrew. It was just a given that there would be more damage with pets. It shouldn’t be that way, but unfortunately it is. I had the same opinion about carpet that was in poor condition.
Maybe you’ll get a snow day out of the snow coming your way. We dodged this one.
I see the pet fee is a hot topic. I have a bunch of tenants with apartment buildings. I agree with Sharon that tenants will sneak them in regardless and lie on the application.
I take a pet fee which is non-refundable for any reason.Even if the pet is perfectly kept you will need to clean carpet,paint,etc. I also have a property manager and maintenance man living onsite.We do inspections every month.I tell tenants the day a pet is discovered we will immediately start eviction.
We do not accept aggrresive breeds of dogs either.Insurance will drop coverage for all of the buildings. I like pets and have some of my own.However what I fault tenants for is trying to confine a large animal in a small space. Example we have 2 bed 2 bath town houses. A big dog HAS TO HAVE a big yard to move around in.
I can understand an older dog on it’s last leg will do less damage but those dogs cause other issues.They can’t hold it anymore and then the carpets get ruined because the tenant is never home.
Cats are fine as long as they have been fixed and the cat litter boxes are changed and claws are clipped little to no damage will occur.Sadly many people that have pets do not deserve them.
One item you really have to keep an eye out for is other people GIFTING free animals to your tenants. We will do an inspection and the gifted animal is always an aggressive breed or a puppy that does massive damage and barks constantly. We tell tenants they will face immediate eviction for it. Had them get rid of an animal the other day.
Joel-
Monthly inspections are a great idea, if you have the man power to do that. I believe that you have to have policies and stick to them in your business. Pets are always tough to deal with in rentals.
Sharon,
I also accept pets and have started charging a $500 pet FEE. I make it clear this is a non-refundable pet fee and not a deposit. So far I have collected 2 of these fees. The $500 is not really enough to cover the damage pets can cause, but it helps.
What you really need is tenants that will stay a long time. I always ask my tenants how long they plan on staying? The answer i am looking for is “The rest of our lives”. In any event, I am really looking to get them to stay at least 30 months. If they can make it 2.5 years, I have made some money and can afford to fix some damage. I would like to think pet owners stay longer, but can’t really prove that yet..
Enjoying your blog – Take care,
Ch.
Chuck –
I didn’t have any luck getting a pet fee that was that large althought I think it’s a great idea. What percentage of tenants with pets are willing to pay that amount? I think it’s great if you can get tenants to stay several years. Like you said, it sure helps with the financial end of the equation. Thanks for stopping by my blog. I’m glad you are enjoying it.
There are a lot more considerations than the tenant is going to do what they want to do. The single biggest thing the aurthor did not address about pets, especially dogs, is insurance. Most insurance compamnies have a very long list of prohibited breeds of dogs. Therefore, allowing a dog on the insurance company’s prohibited list in the house,could render the insurance null and void. Also, if the “prohibited dog” bites someone you are going to be drawn into the up coming law suit. In Texas evictions are very easy, 21days from the mailing of the 3 day letter to getting a writ of possession. So, eviction for a prohibited pet is fast.
Jim -
I did have that addressed in my lease. My insurance company had a list of breeds they did not allow. I had everyone sign off on this clause because you are right about the fact that they can cancel your insurance if you allow those types of dogs. Thanks for your comments.
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