How much should pet security deposit be? in Maryland Elkridge

Investor · Ellicott City, MD · Member since 2016 · 22 posts · 10 votes

Hi all I own a Condo I rent out in Elkridge Maryland 21075. Im currently looking for a new tenant and i have one from the miltary that has two small dogs 10 LBS and 18 LBS. i normally say no to pets but its now been two months looking for a tenant and I like how this person is form fort Meade base because i know she will be able to pay rent each month. I have two questions. What amount of pet security deposit do you recommend and how long does it topically take to find a new tenant in MD for you?

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John Thedford

Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes

Be careful. Using pet "deposit" may mean returning it if no damages. If you are charging a pet "fee" make sure you put that in the lease as a non-refundable pet fee. Other wise, you could be liable for return of a pet "deposit".

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Jeff B.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
9y
Security should always be > Rent. This stops them from moving out and saying "take it from the deposit".
Pets? Separate agreement, $50 per PLUS $20/month rent - - pets WILL damage the flooring.
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Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
9y
Check your state landlord-tenant laws for security deposit and pet deposit.
This will define what you can and can't do for the pet deposit. For my state 25% of rent is the max I can get for pet deposit. This can be non-refundable. A monthly fee can also be charge for all pets or per pet. I've seen fees $20-30 a month range. I would add the carpets need to be professionally cleaned at moved out. If you know the carpet is old and you are replacing them when they move out then don't worry about it (personal choice). Small dogs typically are not able to hold there bladders all day.
As for security deposit, my state does not allow this to be more than the rent price. Always get as much $$$ as you can up front. After than you play hell getting your money back.
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Jamie Mathieu
Investor · Baltimore, MD · Member since 2015 · 20 posts · 13 votes
9y
I advertise "pets okay with landlord approval" and take a $250 non-refundable pet deposit. I think it opens up your rental pool quite a bit. I have been able to turn around a rental in two weeks max for mine in Maryland. I would think you would get a large renter pool in that area. Depending on your traffic, you might need to re-think your price vs. similar comps.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
A pet deposit will not come close to covering damages in many cases,. You would be best to simply charge a higher rent and assume there will be damage. Charge them an additional $100/month since you do not want pets anyway. If they agree OK, if not stick to your no pet policy and keep looking.
The cost of a empty unit is less than having to evict.
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Kenny Ness
OP
Investor · Ellicott City, MD · Member since 2016 · 22 posts · 10 votes
9y
Thanks for all your inputs right now I'm charging $1,450 in rent and ask for the usual 1 extra month rent as security deposit. Im leaning more to saying $500 extra pet deposit. Im worried about not getting a tenant soon because winter and the holidays are around the corner and i know it will be much harder to find a tenant once November hits. I do agree with you Greg I'm sure the $500 will most likely not cover the damages the pets will cause which makes me hesitant.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
Be careful. Using pet "deposit" may mean returning it if no damages. If you are charging a pet "fee" make sure you put that in the lease as a non-refundable pet fee. Other wise, you could be liable for return of a pet "deposit".
3 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
9y
Got carpets ? Figure on replacing them , if you dont have to great .....but you probably will . Charge a pet fee per pet .
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Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
9y
no pet deposit! you will have to return it, or prove that specific damages were caused by the pet. simply charge higher rent and/or nonrefundable pet fee.
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Bryan Crow
Investor · Panama City Beach, FL · Member since 2015 · 22 posts · 2 votes
9y
My standard policy is to allow pets up to 25 lbs with my approval required. I charge $300 non refundable pet fee for each pet. I am considering pulling up carpets in my properties as they become vacant and installing tile through out as an alternative to carpet in the bedrooms. Good luck!
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Chris Egan
Real Estate Agent · Omaha, NE · Member since 2016 · 43 posts · 46 votes
9y
I took a continuing education call a few years back from one of the big property management companies in my area and he totally changed my opinion of pets. He said that they found they were turning away really well qualified tenants due to their no pets policy. So they decided to start allowing pets but charge for them. Of course this is state specific but here you can only charge 25% of the deposit as additional pet deposit and the security deposit can not be more than 1 months rent. However fee's are not regulated. They said they charge the normal security deposit and then an additional upfront pet cleaning fee plus pet rent. I have adopted this policy and have found it to work really well. I charge $200 upfront and then $35/month pet rent.
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Rawley Winstead
Portland, OR · Member since 2016 · 1 post · 2 votes
9y
Chris Egan has a great point. During my stint as a third-party residential property manager I almost always found that properties with strict pet policies had significantly longer vacancy periods. According to Gallup 44% of Americans own a dog and 29% own a cat, that is a very large portion of the population to completely exclude. Large initial pet fees ($500) may discourage renters from executing as you're asking for nearly $3,400.00 up front including first-month's rent, security deposit, and $500 pet fee/deposit. $200 initial pet fee and $35/month pet rent is usually more than adequate.
Also as a side note on the 25 lb limit some Landlords elect to utilize, I have seen significantly more damage to flooring, walls, and doors from small and medium size dogs over large dogs. The quality of your tenant will be the most important factor, not the size of the pet.
Good luck renting!
-RW
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Kenny Ness
OP
Investor · Ellicott City, MD · Member since 2016 · 22 posts · 10 votes
9y
This is great input! Yes I do sadly have all carpet which is not great if there will be pets. I'm debating doing pet fee instead of pet deposit but i honestly don't mind giving back the deposit if it turned out the pet does not do any damages after one year, ill be so happy i won't mind at all giving it back. Im hoping if its a pet deposit and not a pet fee the tenant will be more carful with not causing damages so they can get the full deposit back.
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Jeanne J.
Investor · New Orleans, LA · Member since 2015 · 32 posts · 5 votes
9y
I charge $40 a month for each small pet. No tenants have admitted to large pets yet, but I'll charge $100 under special circumstances, but I really don't want them.
I have a wonderful renter now, but the one before (who was asked to leave) left the place a mess and left behind two large dog crates after lying about having dogs.
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Gini Vidal
Real Estate Agent · Groton, NY · Member since 2016 · 22 posts · 8 votes
9y
When I rent to pet owners I require a $300 pet deposit on top of the normal security deposit and an additional $25/month rent per pet. I also have a pet policy agreement the tenants most sign. It does make the tenant come up with a lot of cash up front but if they can do it then I feel more comfortable renting to them. The extra $25 a month in rent gives me another $300 to go towards repairs if I need it when the tenant moves out. It also increases the amount of possible tenants looking at your rentals because it is hard to find places to rent with pets. I found really great tenants for my rental that have two cats. And hope they stay a while as I have heard pet owners tend to stay longer due to limited rentals that allow pets. Good luck.
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Liz Gagne
New York City, NY · Member since 2016 · 1 post · 0 votes
9y
Most responsible, quality tenants will be fine with an extra deposit and monthly fee. Depending on the law in Maryland anything up to one months rent is fair game as a refundable deposit + a modest monthly fee ($10-$25 per pet).
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JR T.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
9y
We only allow one pet and charge a one time 350 pet fee. For two I would probably charge a $500 fee. I identify the pets in the lease with as much detail as possible. New pet, new fee. Also have a clause that states tenant will pay us $300 additional rent in any month any of my staff observes an unapproved pet in their home. That clause I've prevailed on in court.
Chem Dry does wonders on carpets. It takes us 2-3 months to find a QUALIFIED tenant in Frederick 3-4 in Hagerstown. If you rent below market you get more applicants faster.
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Kenny Ness
OP
Investor · Ellicott City, MD · Member since 2016 · 22 posts · 10 votes
9y
Thanks for the input i am currently using an agent to find me a tenant since with a full time job i don't have the time to do walk throughs and the credit check and everything needed per tenant interested. The agent will charge me a fee of 1 months rent after i get a tenant but i think it is worth it since i just don't have the time. I manage the property myself once a tenant is in. Due to all this info on how each of you act toward pets i am going to call my agent and have her change the add to say pet friendly but pet deposit and extra monthly pet fee required. Also just as an update the Potential tenant from Fort Meade that was interested and had 2 dogs decided to rent a different place with 3 bed rooms for storing her items since my condo is only a 2 Br 2 full Bath.
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Levi T.Pro Member
Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
9y
Originally posted by @Kenny Ness:

Thanks for all your inputs right now I'm charging $1,450 in rent and ask for the usual 1 extra month rent as security deposit. Im leaning more to saying $500 extra pet deposit. Im worried about not getting a tenant soon because winter and the holidays are around the corner and i know it will be much harder to find a tenant once November hits. I do agree with you Greg I'm sure the $500 will most likely not cover the damages the pets will cause which makes me hesitant.
We have a "non-refundable pet deposit" (yes that's how our attorney wrote it) of $250, and charge $35 per month, per pet.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
If it took you 2 months to find a tenant, your rent was way too high. Elkridge should take about 2 weeks to find a tenant.
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Gini Vidal
Real Estate Agent · Groton, NY · Member since 2016 · 22 posts · 8 votes
9y
Good luck Kenny. I hope you have a great agent that does follow through on the credit and background checks. Screening the tenants is the most important part of the process and if they are not screened well you could be in for many headaches.
When I was looking for an apartment to rent before I bought my duplex I had an agent show me an apartment that I decided to rent. She did not do a credit check, background check or even confirm my income and references. I signed a lease with her the day I met her and picked the apartment. She was with me the whole time and never left to confirm any of my information.
Just be careful and confirm your agent is doing the checks.
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Kenny Ness
OP
Investor · Ellicott City, MD · Member since 2016 · 22 posts · 10 votes
9y
Yes Gini Vidal i agree. My agent is doing credit checks i have already had to turn down 3 potential tenants because they did not have a good credit score. Im considering telling my agent to lower my asking rent from $1,450 to $1,400 because it is getting closer and closer to thanksgiving and the winter holidays and i know it will be vary hard to find a tenant then. My agent has yet to recommend i lower it herself and i am still getting 1-2 walkthroughs a week minimal. However it will have been 3 months vacant by the end of Oct.
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Kenny Ness
OP
Investor · Ellicott City, MD · Member since 2016 · 22 posts · 10 votes
9y
Just to update all of those who have helped me out giving advice, I finally got a Tenant its a young Married couple. They have 2 kids a 4 and 5 year old and a 5 pound dog. I ended up charging an extra $500 security deposits only for the dog. They moved in the 25th of November (11/25/16). Also due to them moving in between thanksgiving and the winter holidays i suggested to my agent that they might want to do an 18 month lease instead of 12 months. So they will be moving out during a better time of the year if they don't renew for another year. They accepted the offer of 18 Month lease! So i just want to say thanks everybody for you input and advice i appreciate it. Bigger Pockets is such a great resource one of the best resources is its members helping out. Thanks again! -Ken
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Gini Vidal
Real Estate Agent · Groton, NY · Member since 2016 · 22 posts · 8 votes
9y
Ken, Great job on the 18 month lease!
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