1st time renewing lease, do I ask for another pet deposit?

Question

Hi all, I am renewing lease for my tenant for the first time. They paid $250 pet deposit last year. I am not sure if I should take pet deposit of $250 per every lease of 12 months or it it a one time pet deposit. Secondly, pet deposit paid by tenant needs to be put in escrow account with their security deposit or not? Thanks for helping out a newish landlord.

Thomas S. · Answer

Pet deposit is a one time payment in most cases. You should actually be charging a higher monthly rent so that you benefit long term and have enough money to actually do repairs.

When you raise their rent on the new lease add some extra to allow for the privilege of them having a pet. Double what ever you were going to raise it by.$50/month would not be unreasonable and have them sign a M2M lease to protect yourself.

Ally Kumar · Answer

Thank you all for valuable advice. Original lease was by a PM company that I was using at that time. It did say non refundable pet fee/deposit in the lease. I have increased the rent but its still little below market as they are good tenants and take good care of the house. Lynn, I like the idea of larger but fully refundable pet fee. John, great point! Kim and Greg, thanks for sharing your knowledge.

Lynn McGeein · Answer

If the tenant is staying, then you shouldn't charge them any additional deposits. If, however, you've noticed the pet damaging the property, that would change the circumstances. While I charge a fairly large pet deposit, it is fully refundable and I do not charge any pet fee or pet rent. I believe this gives a much better incentive to actually maintain the property in order to get their full deposit back. I know when I rented, I was much less careful in the rentals that I paid a nonrefundable fee versus the ones where I could get all my money back if I cared for the unit.

John A. · Answer

If you don't plan on returning the $250, it was a fee, not a deposit. If it truly is a deposit, why would you need to increase what you are holding every year? It's OK to charge a pet fee at every lease renewal. But I find it awkward. I just increase the rent per month to account for a pet. $25 per month sells better than $250 every year, even though you are making more at $25 a month.

Kim Meredith Hampton · Answer

Deposits are usually paid upon move in , one time only. Do an interior inspection of the property prior to renewing the lease. Run rent comoarables, then you can decide if a rent increase is needed, if they are not keeping the property in good close futon, you may want to terminate, or ask for a higher rent and pet rent

1st time renewing lease, do I ask for another pet deposit?

1st time renewing lease, do I ask for another pet deposit?

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