A tenant is asking me if I can install a fence in the backyard because his dog keeps running into the woods.  It's a rather big backyard and the costs to fence off the unfenced portion is 2x the monthly rent.  Wondering would anyone else install a fence or ask the tenant to try the electric fence solution ( I've heard some dog owners may not agree to this method ).  Thanks

No. The tenant knew the yard was unfenced when they rented the property. They need to keep their animal leashed or otherwise contained (electric fence, temporary fence, outdoor kennel, etc). If they don't want to and are unable to keep the animal on the property, tell them they need to move out and find a place with a fenced yard.

@Alex Tang , in short, it depends. As @Nathan G. said, they knew it was unfenced when they rented the place. A lot of times, tenants want to ask for things, not even thinking of the cost because it's not their money. So question is, do you want to keep this tenant? Has this been a long time tenant that pays on time? Of has this tenant been the one that always seems to have a request/problem?

If you want to keep them and believe they will be long term thus saving you turn over money, then I say put a fence in and keep the cash flow coming. If they are becoming an issue/headache, then tell them no and they will inevitably move out or figure it out with their dog. Good luck! 

You could ask if he wants to split the cost with you - I did this on one rental that was partially fenced with a tenant that had a dog. He gladly paid half and now I have a fully fenced yard.

Pet owners want a fence. Single females might feel safer with a fence. Ditto if you think you may rent to someone with a child. Would you want a fence if you were staying? if yes, then maybe prospective tenants will too. just points to ponder.

I would install a fence if he signs a new lease with a higher monthly rent that offsets the fence after a few years. That way he's happy and you've got a nice new fence paid for by your tenant.

@Alex Tang I agree with what @Dawn P. suggested. If they're willing to split the costs of the fence with you, then it would be worth getting it done.

No way. Now I will say that a fenced yard has always made my properties more desirable, easier to rent, and allowed me to bump the rent, so I try to fence mine whenever practical, but I would not do it at my cost because a tenant can't keep his dog under control. Now if the tenant wanted to pay for it - a fence that I approve, and including the ancillary costs such as a survey - I would be OK with that. 

A fence is always the first thing I add but prefer to buy a house with a fence already there.  I like renting to people with dogs and get more money for it.  I would give the tenant 3 options.

1 they can pay the full amount up front and rent will be locked for a few years if they stay.

2. You will split the difference and they can maintain their lease and maybe lock in the rate for a year.

3. They rented a house with no fence and there will still be no fence they are free to non renew.

I don’t like the idea of signing a new lease as if they want to leave they will and holding them to a long lease holds you more than them.   You paid for the fence to retain a tenant and they can leave at any point with little recourse.  Saying you will lock their rate let’s them know they aren’t paying more in return for them investing in the fence but still gives everyone an out.  

"Hi tenant. Similar properties with a fence rent for $XXX per month. If you would like a fence, I'd be happy to start work as soon as you sign this addendum agreeing to the new rent amount."

A much less expensive alternative would be to fence a small area--large enough for the dog to have some space to run around, but nothing on the scale of an entire yard. I have heard these areas referred to as "dog runs."

Thanks everyone for your suggestions/input.  I told the tenant that signing the lease accepting that the yard was not completely fenced off.  However, when I offered to split the cost of the fence, he declined and said he would find another way to keep his dog within the yard.

@Alex Tang , No.

The short answer is that it depends. Most of time it would increase value, unless you're ruining a great view from the house. I wouldn't expect it to increase value by the cost of a fence though, so I wouldn't do it to prep a house for sale.