Having a furry, four-legged tenant might not be what you pictured for your rental property, but it actually could be what’s best for your business. Not only does it widen your pool of tenants, but it also allows you to boost income by charging pet rent or pet fees.
Depending on your state and local laws, you may be able to charge these pet-related fees and increase your rental revenue. However, if you’re new to renting to pet owners, it’s important to first understand the difference between these different expenses and what they mean for both you and your tenants.
In this article, we’ll break down the difference between pet deposits, fees, and rent so you know exactly what to expect when renting to pet owners. Here’s a preview of what’ll cover:
- What is a pet policy?
- What is a pet deposit, and how much does it cost?
- What are pet fees, and how do they differ from a pet deposit?
- What is pet rent, and how much does it cost?
- Can security deposits be used to cover pet damage?
What Is a Pet Policy?
Before getting into the details of each form of pet payment, let’s talk about pet policies. If you allow pets in your rental property, you must add a pet policy to your lease agreement. This will serve as a general set of rules for pet-owners and their respective companion to abide by throughout their tenancy.
Your pet policy should clearly state the types of pets allowed, any weight limits, and the number of pets a tenant can have. The pet policy should also state any additional requirements, including vaccines and spay/neuter status. After stating general pet rules, your policy should then go into specific information about pet fees, deposits, or rent.
Here’s an example of what a pet policy might look like in a lease agreement:
Tenants are not permitted to keep pets on the Property without the Landlord's prior approval. If permission is granted, the Tenant will be required to provide an additional deposit of $[X Amount], held in trust by the Landlord, to cover any potential property damages caused by the pet.
It’s important to note two exceptions to pet policies and required fees: emotional support and service animals. Tenants with emotional support or service animals are protected under the Fair Housing Act and cannot be denied admission or charged additional fees for their pets. However, they may still be required to follow general pet guidelines outlined in the lease agreement.
What Is a Pet Deposit?
A pet deposit is an upfront, one-time fee imposed on tenants to cover potential pet-related property damage and losses. Like a security deposit, this fee incentivizes renters to train their animal to behave and respect the property. Otherwise, they might be held responsible for pet-induced damage like carpet stains, scuffed floors and walls, or unwanted pests.
Are pet deposits refundable?
Pet deposits work similarly to security deposits, allowing for full, partial, or no refund, depending on the condition of the property. To maximize their chances of a full refund, tenants should keep the property in good condition and ensure their pet is well-behaved. Any damage caused by pets may lead to deductions from the deposit.
When deducting from a pet deposit, it’s essential to thoroughly document any damage during the move-out inspection. If the tenant is not receiving a full refund, provide them with an itemized list detailing the damage and associated repair costs. For pet damage that exceed the amount of the pet deposit, landlords should consult their state laws to determine the proper course of action.
How much are pet deposits?
The average pet deposit can cost anywhere from $100 to $600. Before you decide how much to charge, check your state and local laws for potential restrictions. From there, you can choose the amount based on your preferences. For example, you may charge a larger deposit for bigger pet types or breeds, accounting for the potential for more damage. Just make sure you’re being fair, reasonable, and compliant with local regulations.
What Are Pet Fees?
A pet fee is essentially an admission charge for a pet. Like a pet deposit, it’s a one-time fee that tenants must pay in addition to other upfront costs like a security deposit, application fee, and first month’s rent.
What do pet fees usually cost?
The average pet fee is $250-$500 per pet. Like a pet deposit, you can determine this price by the type/breed of pet as long as you adhere to local regulations. That said, a tenant with a large dog and a low-maintenance rodent may receive two different-sized pet fees based on the potential for pet-related damage.
What’s the difference between a pet deposit and a pet fee?
The main difference between a pet deposit and a pet fee is refundability. While pet deposits can be fully or partially refunded, pet fees cannot. The pet fee pays for the privilege of having a pet in the home, whereas a pet deposit specifically covers the costs of pet-related damage. Like we said, a pet fee is like an admission ticket, while a pet deposit acts more like a security deposit.
Another difference between pet deposits and pet fees is that pet fees apply to each animal, while pet deposits account for all. If a tenant has two dogs, they would likely have to pay a pet fee for each one. However, their pet deposit would cover both animals.
What Is Pet Rent?
Pet rent is a monthly fee tenants pay on top of their standard rent. Like a deposit, this expense accounts for any potential property damage or loss inflicted by a pet. However, unlike a pet deposit, pet rent is a recurring charge that tenants must account for throughout their lease.
How much should I charge for pet rent?
The average pet rent costs anywhere from $10 to $60 per month. You can calculate this in several ways: taking a percentage off the regular rent (usually 1-2%) or charging a flat fee based on factors like location, pet size/breed, and your history with pets on the property. If you’ve had poor experiences with pets on the premises, you may air on the side of caution with higher pet rent. Or, if you’re not worried about pets, you may charge lower rent or waive the costs altogether.
Can I charge pet rent, a pet deposit, and pet fees?
Depending on your state and local laws, you may be able to change pet rent, pet deposits, and pet fees. However, just because you can doesn’t necessarily mean you should. While imposing some of these costs can boost revenue, it also comes with risks. Too many pet-related costs may seem excessive and deter tenants from renting your property. Plus, charging multiple pet-related fees is not always ethical as they all serve a similar purpose.
Can I Use a Security Deposit to Cover Pet Damage?
If you don't charge a pet deposit or pet fee, you can use the security deposit to cover repair costs for pet-related damage. However, if you do require a pet deposit or pet fee, be aware that some states prohibit landlords from using the security deposit for pet damage. In such cases, all repair costs must be deducted from the pet deposit or fee instead.
To protect your property and finances, consider charging a security deposit along with at least one pet-related expense. Security deposits are often higher than pet deposits or fees, which can be a disadvantage if significant damage occurs in the rental property. By combining a security deposit with an additional pet-specific fee or coverage, you create an added layer of protection, ensuring your property is better shielded against potential risks.
Manage Your Pet-Friendly Rental on Apartments.com
Allowing furry friends in your rental property can benefit your business. However, it does add an extra layer of responsibility. Managing a pet-friendly rental requires clear policies, open communication, and a fair approach. From understanding pet rent and deposits to complying with legal regulations, there’s a lot to consider. But luckily, Apartments.com is here to help.
With our valuable suite of Rental Resources, you can list, promote, and manage your pet-friendly rental with ease. Plus, our expansive database of listings and advanced search options makes it easy for responsible pet owners to find your property. List your pet-friendly rental today and find the perfect tenant-pet duo for your property.
This article was originally published on April 23, 2020, by Jamia Kenan.
FAQ
Can landlords deny a pet?
Yes, landlords have the right to deny pets on their property. Unless it’s a service animal, landlords are within their rights to prohibit certain breeds, animals, or pets over a specific weight (or pets of any kind).
Is pet rent normal?
Pet rent is common, but it’s up to the landlord whether to charge a tenant for pets. Landlords typically charge some fee associated with pets, whether it’s rent, a deposit, a one-time pet fee, or a combination of the three. As a landlord, be mindful of not overcharging as you could lose potential tenants.
What happens if your tenant is hiding a pet?
If a tenant has an unauthorized pet, the landlord may be able to evict the tenant. If the situation is rectified, the tenant may still be responsible for paying a fee. The penalties for an unauthorized pet should be clearly stated under the pet policy in the lease agreement.
Are emotional support animals excluded from pet fees and deposits?
Service animals, including emotional support animals, are excluded from upfront pet fees. The only time a landlord can charge a tenant for a service animal is if the service animal causes damage to the property outside of normal wear and tear.
