Security Deposit & Pet Deposit - Can one supplement the other?

Question

Scenario 1:  The wood floors need to be refinished because dog urine has ruined them and the pet deposit doesn't completely cover the damage.  Can part of the security deposit be used to cover the rest?

Scenario 2:  You have holes in the ceiling and walls (obviously not from pets) and the security deposit doesn't completely cover the damage.  Can part of the pet deposit be used to cover the rest?

None of these cases have happened to me, but I'd like to know how this works in case I'm unfortunate enough to be in a situation like this.

Thanks!

Jon Holdman · Answer

Make the pet deposit non-refundable and state that it is for cleaning and deodorizing.  Any damage comes from the security deposit, whether cause by man or beast.  I'd set the pet deposit high enough to be sure you can give the place a through cleaning and carpet cleaning (if applicable).  If the cleaning is more than the pet deposit, it comes out of the regular deposit.  When you give the security deposit accounting, include the cleaning and anything else, and show the pet deposit as a credit.  Then, take the remaining amount from the security deposit.

Terrence Robs · Answer

Has anyone ever heard of charging over US $950 to rid an apartment of pet odor? (1br/1bath, 800sq ft.) And is removing the laminate flooring a common practice to achieve this?

Thanks!

Deborah Mettler · Answer

I presently charge a $100 non-refundable deposit for each pet and am planning on raising the pet deposit due to the fact that one of my tenants just vacated and left me urine drinched carpet.  $100 is not going to cover the damage from the urine.

The pet deposit is just for that..if stated within your lease.  You can go back to the security deposit to deduct for additional pet damage.

I would recommend case by case when considering pets.

Boris Psakhis · Answer

Check your local laws.  In state of Michigan, any deposit that is refundable, no matter what you call, is considered security deposit.  Total security deposit is limited to 1.5 of monthly rent.  Meaning that if you charge 1.5 month security deposit and a "pet" deposit that is refundable, you are violating state law and if you need to go to court...it could get ugly.

If you make a pet deposit non refundable, then it is not a deposit but a fee :) but that would solve an above problem.

Personally, in my properties, if I cannot get a strong applicant without pets into the house within a month or so, I open it up to pets based on case by case basis.  So far I only had to do that in 1 out of 4 SFR I have for lease.

In the end, make sure you screen well, charge security deposit large enough to cover most of the damage (1.5 month for all my properties, no exception).  If you get a good quality tenant, it will better for your property and bad tenant, no amount of deposit will save you.

Steve Babiak · Answer

Pet deposit is usually called "non-refundable", so you keep that to take care of "normal wear and tear" due to the pets.  Some places don't allow for collecting different types of deposits (they allow just the one called security), so check whether that is permitted by law in your area.

The security deposit is intended to cover any and all damages due to occupancy by the tenant, including their pets; you'll first have to use up that non-refundable pet deposit amount before tapping the regular security.

Normally, after a pet move out, you might have to fumigate for fleas and ticks, and have a heavy cleaning of carpet to get fur out.

Sharad M. · Answer

Shane,

I am new landlord and none of these situations have happened to me (I sincerely hope that they never happen in the future either), but I don't see why wouldn't you be able to use both the security deposit to cover the damage.

You get security deposit to cover the damage against your property, but IMO security deposit is not the cap for the damage loss you can receive. Let's say in Scenario 1, you had $800 deposit + $200 pet deposit for total deposit of $1,000. And lets say the damage caused by the pet comes out to $400. From what I understand, you will deduct $400 from the total deposit and return $600 (assuming no other damage).

Now let's say the damage comes out to $1,500, in this case, you will keep the full $1,000 security deposit and take the tenants to small claims court for the remainder of $500 damage.

Security Deposit & Pet Deposit - Can one supplement the other?

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