Tenant was “gifted” a dog

Real Estate Agent · San Diego, CA · Member since 2014 · 338 posts · 176 votes

My property manager contacted me to let me know a tenant in one of my duplexes has been given a dog. They asked me if I would consider collecting a 200.00 pet deposit and 25.00 a month for pet rent or if I wanted to evict them. It’s a c class property with mostly hardwood floors. I’m waiting to hear back on what type of breed the dog is. If it’s an ‘aggressive ‘ breed I might ask them to get rid of the dog or start the eviction process. What’s everyone’s thoughts? In a perfect world the tenant would have asked first but the dog is already in the house. Does a 200 pet deposit and 25 pet rent a month sound fair? I’d like to keep the tenant in place and not deal with eviction and and temporary vacancy.

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John Warren

Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes

@Mark Frattini My partner and I recently decided to accept pets into one of our new projects in Berwyn. The reasoning was that we could get an extra $25 per month for the pet rent. If you have a larger building, that extra $300 per year starts to make sense. Each pet is worth $4,285 in building value... My building has 19 units, so if I collect pet rent in 10 units I can refinance 70% of that $42,850 out when I pull cash out...

Little things like this can make a big difference over time!

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Cassi Justiz
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
7y
Depending on what your state laws are, if possible I would go with a one time pet fee instead of pet rent and deposit. Depending on your state, you may also be able to require them to get a renters insurance policy to cover the new doggo if you don't already require this. Deposits are refundable, so if you do a deposit you have to evaluate whether or not to give it back. If you do a one time pet fee that covers "additional wear and tear" there isn't a question about it. I think that any damage that occurs (whether from the pets or the humans) while the tenant lives in the property should come out of the security deposit.
You may also check into your state laws on the collectability of fees. In my area non-payment of fees is different than non-payment of rent. So that may be something to keep in mind.
I wouldn't evict someone because they acquired a dog. But I would let them know what my pet policy is. And I would make sure they have a deadline to be in compliance with the pet policy.
*Edited to add: Our pet fee is a one time $300 fee per pet. That seems to be pretty common in my area.
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Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
My policy on pets is a 500 refundable deposit and no pet rent.
My reason for doing refundable is they want the deposit back so they really work to keep their money.
A fee is money spent so they will natirally think “i already paid for damages so i am not going to worry about stuff since i am paying for it anyway”. Its just basic human nature.
I have a stringent pet policy and i enforce it (no pet waste on the property- no letting dogs pee on the property etc)
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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
7y
@Mark Frattini My partner and I recently decided to accept pets into one of our new projects in Berwyn. The reasoning was that we could get an extra $25 per month for the pet rent. If you have a larger building, that extra $300 per year starts to make sense. Each pet is worth $4,285 in building value... My building has 19 units, so if I collect pet rent in 10 units I can refinance 70% of that $42,850 out when I pull cash out...
Little things like this can make a big difference over time!
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
I accept pets, no extra fee. But my rentals are also class A/B. I might have a different policy if I were in class C
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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
Besides the breed you should also inquire about the age of the pet. If its a puppy, it will not be potty trained and your floors will bear the brunt of that process. Ask directly if it is potty trained, obedience school, shots up to date, etc.
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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Mark Frattini the fact that they brought the dog in without permission is a lease violation and I would request formally that the dog be removed or they move out. If would not filter based on breed, but rather weight. Such as no dog over 20 pounds adult weight. I have friends who had a sheep dog. It was the sweetest most loving dog ever, but BIG. They are great owners, very responsible, but still their wood floors were completely destroyed by the dogs nails. It cost them thousands to refinish when they moved out. That $200 pet deposit and $25 rent will not even cover a fraction of potential damage from a big dog. If the tenant came in with good credit, then I may not be so concerned about damage because they would cover it most likely.
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Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
7y
As @Joe Splitrock eludes to- I do not allow tenants to manipulate me into changing my policies.
The tenant just violated the terms of the lease in a very very big way. You and your so called property manager are going to give him a pass... bad move.
I would serve the tenant with a notice to cease/quit and look for a new property manager.
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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
@Patrick M. Yes agreed 100% I don’t know why people are talking about accepting pet deposits and other nonsense . The dog is not permitted and it’s a clear willful breaking of the lease agreement . The dog isn’t allowed plain and simple ! The property manager is a total pushover and should not be suggesting such things . He should be promptly fired and replaced with someone who actually upholds your lease
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Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
Do you allow pets otherwise? My new policy is $250 pet fee (non-refundable) and $50 per month pet rent.
1 Reply
Marci Stein
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
7y
Ta ke a fair deposit from them and see how it goes . It might be fine.
0 Reply
Richard Sherman
Rental Property Investor · Salem, OR · Member since 2017 · 696 posts · 660 votes
7y
@Mark Frattini We do a deposit (varies by a number of animals and property) and pet rent. Check CA laws but I ALWAYS go for pet rent as there will be incremental wear and tear and things that are not easily identified and we require ALL renters to have renters insurance (I believe only a couple of states do not allow that requirement.)
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Bryce LitwinPro Member
Danville, PA · Member since 2015 · 58 posts · 58 votes
7y
Notice to cure or quit.
2 Reply
Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
7y
That is fair additional charge.
0 Reply
Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
7y
In Ohio, any deposit over one month's rent must pay 5% interest after 6 months. So we do a non-refundable pet fee + pet rent. Pet damages may be deducted from the security deposit just like any other damage.
1 Reply
Casandra M.
Rental Property Investor · Janesville, WI · Member since 2016 · 87 posts · 42 votes
7y
Setting precedence with a tenant is everything... if you're a landlord by business, tell them they need to remove the animal or risk eviction.
If you want to consider allowing dogs, another option would be to require the tenant to sign a new year-long lease for the property with a pet addendum. In our area of Wisconsin, it's difficult to get a rental unit that allows dogs, especially large dogs, so we personally chose to allow them knowing we could charge additional rent. For dogs, we require rental insurance (minimal cost to the tenant), proof of the dog being registered with the city and up to date on shots, a $250 security deposit for the first dog + $100 security deposit for a second dog, $25 extra in rent per month, per dog (up to 2 dogs), with no pitbulls or pit mixes.
Our pet addendum also outlines that if the dog is ever a nuisance or has clearly caused damages in excess of the pet security deposit, that we have the right to request that the pet is removed from the property and if that situation occurs, it does not allow the tenant to break the lease (essentially, just because you can't have your pet anymore, doesn't mean you aren't responsible for the original lease).
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Scott Schultz
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
7y
We allow pets in all of our units, we require renters insurance that names the pet, breed, sex, and weight. we generally charge pet rent, vs a deposit, for us it works out better to collect more rent vs trying to sue blood out of a turnip if they have a $200 deposit at the animal damages the property, over the portfolio, the pet rent is much more money in the big picture.
1 Reply
Mitch Coluzzi
Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
7y
@Mark Frattini if you don't normally accept pets, don't start now mid-lease. If you normally accept pets then follow your standard of practice. If you decide you want to accept pets, determine the perimeters for such, independent of this tenants request, and implement a global policy change. A lease breach is a lease breach. They didn't ask, they broke lease terms and thereafter are requesting concessions. This is akin to not paying rent, then your property manager asking if you'll accept payments for the unpaid amount. Don't waiver in your policies, unless it is an independent decision to make a change. Sidenote: your PM should know better... Plain and simple. :)
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Brock Bowen
Member since 2018 · 24 posts · 5 votes
7y
@Mark Frattini first let me say I am not a landlord YET. So take this as you want.
1st. Consider how you feel about pets in your rentals. All else aside it all comes down to you.
2nd. I owning a aggressive breed "rottweiler" can say she is very gental and loves everything. My personal stance is meet said dog. If at any point it is aggressive it has to go. I am in the opinion if the dog is in the back yard alone I should be able to walk in without reservation at any point. If I cant it has to go.
3rd. I agree your PM should have handled this without you based on the lease in question. Something you should consider moving forward regardless of what you decide.
4th. Also consider if you allow or not will effect the other rentals you have. Allowing pets in whatever form does open up a lot more perspective renters. Most willing to pay more to have there pets. BUT there are reasons most places do not allow pets. Whether its Insurance or damage or just general dislike.
There is a lot more to consider both positive and negative but in my opinion if you do allow...and I plan to I would force a new lease agreement and add in at least a 250.00 non-refundable pet fee and at least 25.00 a month pet rent.
I don't know if this helps but keep in mind like I said in the beginning I am just getting started and I DO NOT own a rental at the time of writing this.
Good luck no matter what you decide.
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Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
7y
I would say your prices are too low. If you really don't want pets make the prices steep. I call it the Trump Effect, I will give you options but you may not like them and then you can decide on what to do.
I am considering a pet fee of $300 and $50 pet rent. I don't want pets but everyone seems to have one.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
What you can do and should do depends entirely on your lease. This is not a question you should even be asking on here. Enforce your lease without exception otherwise your lease will be null and void. A contract that is not enforced and adhered to is not a contract.
Your decision is not optional. If you have no pet policy in the lease then that means you allow pets without a fee. If you have a pet policy apply it to the letter. It is not acceptable to make up rules as you go along. A lease is a legally binding contract.
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Joe Arida
Rental Property Investor · Fitchburg, WI · Member since 2016 · 91 posts · 60 votes
7y
I'd shy away from a "pet deposit", as it can be confusing and you can get pushback when time comes to collect. Also don't like the term "Pet Fee", instead collect "Pet Rent." Write/obtain a very strict pet policy and have a lawyer review it and enforce it. Read through it line by line and have them initial every line and sign at the bottom. Make sure you have a clause stating you can revoke the permission for the pet to stay at the premise at any time for any reason you choose.
Make sure they understand their liability. Give specific examples of what would happen in various damage scenarios, if the dog had issues with going potty in the house (they would be charged to replace the carpet, etc.), if the dog scratched up or ruined the door (they would be charged to replace the door), etc.
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Jason Totty
Member since 2018 · 1 post · 0 votes
7y
"Make sure they understand their liability. Give specific examples of what would happen in various damage scenarios, if the dog had issues with going potty in the house (they would be charged to replace the carpet, etc.), if the dog scratched up or ruined the door (they would be charged to replace the door), etc." (Crucial)
One always wants to not deal with temporary eviction and loss of cash flow. I think you also need to evaluate the tenant or have the property manager evaluate your tenant. Do they pay on time? What type of person are they? This is a multifaceted issue.
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Morgan Klein
Rental Property Investor · Jefferson, GA · Member since 2017 · 95 posts · 145 votes
7y
@Mark Frattini
Is this an eviction situation? Are they drawing a line in the sand? Sounds like they’re just asking if you’ll accept a pet deposit and monthly payments in exchange for keeping the dog. If you simply said “No”, would they find another solution for the dog, or would they move out? If it’s the latter, they’ll be breaking the terms of their lease and I’m guessing you have a clause keeping deposit, last month’s rent, etc. If you can fill the vacancy quickly and depending what your PM charges to find new tenants, you might make money saying “No”.
Personally, I allow dogs for a $500 refundable deposit, but it’s limited to certain breeds. I don’t have a size restriction. I like the $200 + $25/month pet fee, as that $25 goes directly into your pocket, guaranteed.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
7y
Tenant wasn't gifted a dog, tenant got a dog. However the dog came into this person's life, they accepted and chose to have a dog.
People have tried to gift me a dog. I didn't accept it because I don't want a dog.
With hardwood floors, I'd say no.
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Jason Bowles
Rental Property Investor · Columbia, TN · Member since 2015 · 22 posts · 9 votes
7y
Firing the PM is a knee jerk reaction. It’s your money and I would respect a PM who asked for help making the decision for long term tenants. If the tenant is new (less than 12 months) or has been a poor steward of the home, I suggest giving them the options of removing the animal from the home or voluntarily terminatingvthe lease per the lease termination terms. If the tenant has a respectable history of tenancy with you and you’re willing to consider allowing the pet, I like the idea of a prepaid pet cleaning fee of $250 and additional $250 refundable (motivation for the tenant to manage their pet’s behavior) deposit.
However, none of this matters if you can’t be comfortable with pets in the home. Always allow an option for the tenant to voluntarily terminate the lease without an eviction judgement on their record. Don’t be the investor known to the local courts
All my rentals are SFH. I do not allow any indoor pets. If the tenant wishes to keep any outdoor pets, I require (with an addendum to the lease) that they be kenneled at the tenant's expense and that they obtain (and show it to me...I already have my own copies on record) a printed copy of and follow all local laws (for feeding, watering, leashing, and sheltering the pet) and ordinances pertaining to pet ownership. Other existing terms of my lease make clear that community nuisances (excessive barking, scaring the neighbors, etc) on my properties are a terminatable violation.
Know that whatever decision you make should be based on documented facts about your lease terms and tenant policies and the tenant’s history with you. If you can’t document it, you can’t lean on it in court.
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