Renting to pet owners can be both rewarding and challenging. As of 2023, pet ownership in the U.S. has risen to a new high, with 70% of households owning a pet. This surge, highlighted by the American Pet Products Association (APPA), reflects a shift in lifestyle priorities, with pets playing an increasingly vital role in many Americans’ lives, especially during the pandemic.
This increase in pet ownership presents a significant opportunity for landlords. By allowing pets, landlords can attract more potential tenants—nearly three-quarters of U.S. households. Here are the benefits:
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Happy Tenants: Tenants who are pet owners often appreciate the opportunity to have their pets with them, which can increase satisfaction and reduce turnover.
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Longer Stays: Pet owners tend to stay longer, minimizing vacancy periods and reducing costs associated with turnover.
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Responsible Tenants: People who take on the responsibility of caring for a pet often exhibit more responsibility in other aspects of their lives as well.
However, renting to pet owners also comes with its challenges. Pets can cause property damage and increase wear and tear. Let’s explore how to mitigate these risks while enjoying the benefits.
Managing the Cons of Renting to Pet Owners
1. Collect a Pet Deposit
A pet deposit is an effective way to mitigate potential damage. Landlords can assess a higher deposit from tenants with pets, which provides security in case the property is damaged. This deposit is refundable as per the terms outlined in the lease agreement. Just ensure that the deposit is reasonable and complies with local laws.
2. Consider “Pet Rent”
In addition to a pet deposit, landlords may opt for “pet rent”—a monthly fee that pet owners pay on top of their regular rent. While some tenants might balk at the extra cost, others will find it a small price to pay for the privilege of having their pets live with them. This rent can also offset the increased maintenance costs associated with pets, such as cleaning carpets or fixing scratched surfaces. While we don’t generally recommend charging pet rent, it can be a useful option in certain situations.
Before implementing a pet rent, make sure to check state and local regulations, as some areas may have restrictions on additional fees for pets. Also, keep in mind that service, guide, signal, or support animals are not considered pets under the Americans with Disabilities Act (ADA) and cannot be charged extra fees.
3. Create a Detailed Pet Policy Addendum
Having a clear pet policy is essential to protect both landlords and tenants. A well-written pet addendum to the lease agreement can help set expectations and address common concerns. Key points to include are:
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Pet Limitations: Specify the maximum number of pets allowed and any restrictions on size, breed, or species (e.g., no exotic animals).
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Noise Clauses: Outline acceptable noise levels and consequences for excessive noise, which could disturb neighbors.
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Periodic Inspections: Include terms for periodic inspections of the rental unit to ensure the pet is not causing damage.
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Pet Damage: Clearly define what constitutes pet damage (e.g., scratched floors, chewed furniture) and outline the process for addressing such damage.
4. Pet-Friendly Policies for Specific Types of Pets
While dogs and cats are commonly allowed, some landlords may want to set more specific rules regarding other animals, like reptiles, birds, or exotic pets. Be sure to outline what is permissible in your policy.
A Win-Win Situation When Managed Proactively
Allowing pets in your rental properties can be a win-win if handled with care and foresight. By establishing clear policies upfront, you can ensure that both your property and your tenants’ pets are well cared for.
About Rentals America
Rentals America provides full-service property management for residential properties. Our dedicated team helps landlords navigate the complexities of renting to pet owners, ensuring both the tenants and the property are well taken care of. Reach out to us today for guidance on managing your rental property effectively.
