Roommate Switch Out - Pet Fee Return?

Question

I have to perform a roommate switch out in one of my properties.  The tenant lived there 3 months and paid a non refundable pet fee.  I am trying to figure out if I should return a prorated amount or keep the fee.  Any help would be appreciated.

Marcia Maynard · Answer

I agree with @Phillip Syrios. Another reason to keep the fee... you probably will not be able to fully see damage caused by the pet until long after they are gone and the unit is vacant.

Also, for the security deposit, if you are thinking about returning a portion to the out-going tenant, don't. When we accommodate a change in the make up of a household, we let the tenants know the full security deposit stays in our trust account, earmarked for that unit, until the final departure of all occupants and we have received return of possession of the unit. We let the tenants work it out amongst themselves to reimburse the outgoing tenant for their share and to collect a new share from any incoming tenant.

Phillip Syrios · Answer

If its non refundable I stick to that as my rule. Non-refundable means it doesn't get refunded no matter what, as soon as it hits my bank account it is income, not a deposit. If you don't want that then make it a pet deposit not a non-refundable fee.

Phillip Syrios · Answer

Agreed, many people are mad about pet rent or pet fee's and I always tell them the same thing.

"There are two kinds of pet owners. Good Pet owners and bad pet owners, you are probably one of the good pet owners and your pet wont cause any damage, but because bad pet owners exist and do so much damage to properties we have to charge everyone. Basically the good pet owners have to pay for the bad pet owners. It sucks and its unfair to responsible people but that's the only way we can allow pets in general otherwise we wouldn't be able to allow any."

Its a way of letting them know they are not the problem and you understand its frustrating while helping them understand the increased liability you are taking on even if they don't see themselves as an increased liability to you.

Daniel Mohnkern · Answer

I would look at a pet fee as being payment for the risk I am taking that your animal is going to cause damage to my property.  Taking risk should always be rewarded.

Marcia Maynard · Answer

We don't charge an administrative fee, but certainly could. The situation doesn't come up that often for us. I'm in the process of revising how we document changes in household make-up and clarifying our policies and procedures about that. Maybe I will add an administrative fee because it certainly takes a bit of my time an effort! I would probably make it a nominal amount, such as $20.

The incoming person needs to complete an application process and pay the application fee for that (ours is $40). If the person moves in without doing this, we would charge an unauthorized occupant fee of $50.

Tyson Luthy · Answer

@Rich C.   Definitely keep the fee. And in my opinion, you should charge a lease initiation fee as well (or something similar). Switching out roommates causes you additional work, you should get paid for it.

Rich C. · Answer

Thank you for the responses.

@Marcia Maynard

What do you typically charge as an administrative fee in roommate switch situations?

Roommate Switch Out - Pet Fee Return?

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