Pet fee, or pet rent. Preference?

Question

We have always taken a non refundable pet fee, varying between 200-300 bucks.   But I've talked to fellow landlords in the area and they mostly add additional rent for pets, between 25-50 bucks a month.  Which do you guys see as preferable?   Or maybe a little of both?  100 dollar fee and 25 bucks a month?

Nathan Gesner · Answer

A pet fee is one time and typically not large enough to mitigate damages.

I charge monthly pet rent based on the type/size of the animal. If someone wants to rent a house with two large dogs, it will cost them $100 a month. If they leave the home in great shape, it's extra money in my pocket. If they cause damage, I apply the deposit first, then I use the extra pet money to cover anything left over. I still go after the tenant to recover those expenses but at least I haven't eaten into my base rent income.

While you get a $350 fee up front, I get an extra $1,200 a year or $3,600 in three years. Big difference!

Do some research and see what your local market can support. In many markets you will find a slew of curmudgeons like @Thomas S. (kidding) that reject pets under any circumstance and this should be seen as an opportunity for you to make some extra money.

Bab Adetiba · Answer

I recently discovered landlords charge a monthly fee and since then, we do also. In addition to a non-refundable deposit. You'd be amazed - or not - what tenants are willing to pay for their pets on a yearly basis and how that really improves your first year return.

Steve R. · Answer

@Roger Sandmann I charge a $25.00 pet fee, per month, per pet. Charging per pet discourages those who want to have their 7 cats.

JD Martin · Answer

Neither. I don't charge extra and make the determination on pets based on the applicant and the pet. We are local to all properties and visit the properties on occasion and we have never had an issue.

John A. · Answer

I used to charge a one-time pet fee but now charge pet rent.  Like @Steve R. said, it discourages tenants from getting too many pets.  Also, it's awkward to ask for another pet fee at lease renewal.  The pet rent/fee is a motivator for me to accept pets.  If I can't continue to collect it for as long as the pet is in the property, I have no motivation to accept pets.  Finally, the pet rent/fee is not to cover damage from the pets.  Pet damage is charged to the tenant.  I make that clear to the tenants.

Andrew Kerr · Answer

@Roger Sandmann when I allowed pets, I did both. A while back I decided to just go with a no pet policy.

Brendon Pishny · Answer

@Roger S.

I charge $30/month per pet. That seems to be fair to the tenant and makes enough money for me each year to cover any costs of wear and tear. Most people don’t even blink an eye at this. And when they live there long enough they don’t even remember. It just becomes part of their rent payment. A non refundable deposit is just not enough of the tenant stays long term.

Mike Klingshirn · Answer

this post was amazingly helpful. Thanks!

Thomas S. · Answer

I do not allow pets however if I did I would definatly charge a monthly pet rent. Probably $50.  A one time fee will not come close to covering damage that can not be repaired.

I purpose of a fee or monthly charge is a punishment to discourage tenants from having pets and for the landlord to benefit when they do. If they want a pet make them pay every month.

Finding landlords that allow pets is becoming more difficult. Tenants are having difficult finding receptive landlords in some areas meaning that landlords should be charging as much as the market will bear. Worse case scenario is you get a tenant without pets.

Sharlene Mulchandani · Answer

We charge a one time, non-refundable pet fee - most landlords usually charge anywhere between $50-$500 for pet fees, which you can use for any damages. You can charge this fee, depending on the amount of risk presented by the pet. Additionally, we charge a small monthly amount for pet rent, where you can charge anywhere from $10-$80 each month. Pet fees (whether one time or monthly rent) are not legal in every state, so I suggest you refer to your state laws as well.

Pet fee, or pet rent. Preference?

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