Should Landlords Allow Pets in Rentals?

Should Landlords Allow Pets in Rentals?

February 20, 2020

11 Minute Read

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People love their pets. So much, in fact, that many pet owners won’t even consider a rental property that isn’t pet friendly. According to the Zillow Group Consumer Housing Trends Report 2019 survey data, 46% of renters live with pets — and 48% list allowing pets as a requirement for their next rental.

While allowing pets in your rental property gives you access to a broader pool of potential tenants, it also comes with additional risks. Because of this, planning ahead, establishing rules and requirements, and creating a pet agreement are essential for landlords who are renting to tenants with pets. If you find yourself wondering, “Should I allow pets in my rental property?” then you’re in the right place.

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Benefits of allowing pets in rentals

There are several benefits to allowing pets in rentals, including:

A larger pool of applicants. Many applicants are only interested in renting a house with pets and won’t even consider applying if you have a no-pet policy. If you allow pets, your rental will appeal to a larger audience and help ensure you find a great renter for your property.

Increased rental income. Many landlords who allow pets charge a pet deposit, pet fee or additional pet rent each month. And if there aren’t any pet damages, you’ll end up with additional rental income.

More renewed leases. Since pet owners often have a harder time finding a rental than those without pets, you may find that pet owners renew leases more frequently than renters without pets. Renters with pets fill out 1.6 times as many applications,1 on average, than renters who don’t own pets.

Reliable tenants. Since pets require maintenance and attention, a pet owner may be more likely to show the same care and responsibility when it comes to your rental property.

Happier tenants. Animals are known to reduce stress and can help a property feel like a home. Over a third (37%) of renters are single or never married2 — but 46% of renters have pets.

Decreased chance of unknown pets. Tenants are more likely to be upfront about their pets if you allow them from the start. You’ll have fewer instances of tenants sneaking pets onto the property and will be aware of the type and number of pets living on-site.

Risks of allowing pets in rentals

However, allowing pets in rentals does come with risks. There’s a chance your tenant’s pet may:

Damage your rental property. Animals like dogs and cats can chew, scratch and stain the surfaces in your rental. But any pet poses a risk — even an aquarium can cause damage if there’s an accident.

Disturb the neighbors or other tenants. If there are multiple units on the property, or if there are neighbors nearby, noise can be a concern.

Leave unwanted odors. Occasionally, pets can leave odors behind. From accidents to fur or hair, your rental may require extra cleaning to get rid of unpleasant smells.

Bother tenants with allergies. For multi-unit rentals, you’ll need to be aware of potential allergies among other tenants. This could be an issue in shared spaces like hallways or yards.

Injure a person or animal. As a landlord, you don’t want to be held liable for injuries caused by your tenant’s pets. Make sure your tenant has proper renters insurance that covers animal bites on the property.

Make sure your insurance allows pets in rentals

So you’ve weighed the benefits and risks and decided to allow tenants with pets. Before you do, you’ll need to ask your insurance company and homeowners association (HOA) if they have any restrictions or disclaimers about renting to tenants with pets.

Know what animals are restricted

Some insurance companies and HOAs have restrictions on certain breeds (or weights) of dogs, such as:

  • Pit bulls
  • Rottweilers
  • Doberman pinschers
  • Chows
  • Akitas
  • Alaskan malamutes
  • German shepherds
  • Siberian huskies
  • Saint Bernards
  • Wolf hybrids

The type of restrictions will vary depending on the HOA or insurance company. Make sure to check with your agent or HOA board and see what restrictions they have, if any.

Require adequate renters insurance

Be sure you are covered in the event of any injuries that may be caused by the animal. You’ll want to require tenants to purchase renters insurance and show you their policy to ensure it covers dog bites and other injuries.

How to make your property pet friendly

You can help minimize the costs associated with maintaining a pet-friendly property by making these improvements before renting to tenants with pets:

  • Install durable flooring. Linoleum or vinyl won’t collect pet hair, and they are more stain- and odor-resistant than carpet.
  • Landscape your yard. Consider designating a section of your yard as a pet potty area and covering it with small rocks or mulch.
  • Install a fence. A closed-off area will allow your tenant’s pet to play without worry of escape.

These minor changes will make your property desirable to pet owners, as well as make it easier for you to clean.

How to screen tenants with pets

You screen a tenant to determine if they’re a good fit for your rental property — by screening their pets, you’ll be able to help mitigate some of the risks associated with renting to pet owners. Before you approve the applicant and sign a lease, conduct a pet interview so you can:

  • Meet the animal in person and confirm that it’s well-behaved and friendly.
  • Take the pet’s picture and keep it for your records.
  • Ask tenants specific questions about their pets.

What to look for when meeting pets in person

When you meet an animal in person, you can observe its behavior and ensure it’s well-trained. You’ll also want to make sure the applicant is responsible, making note of whether they have necessary items like a leash and waste bags with them.

Questions to ask tenants with pets

  1. How many pets do you own?
  2. What is the pet’s breed and size?
  3. How old is the pet?
  4. How long have you owned the pet?
  5. Is your pet properly licensed?
  6. Has your pet ever acted aggressively toward another animal or person?
  7. Are you solely responsible for your pet?
  8. Is the pet trained?
  9. Does your pet have all of its necessary vaccinations?
  10. Is your pet spayed or neutered?
  11. Does your pet get along with other people, children and animals?
  12. Who looks after your pet when you’re away?
  13. How do you control fleas?

How to add a pet addendum to your lease agreement

A pet addendum, sometimes called a pet agreement, is a document added to your lease agreement that requires tenants to abide by specified rules, regulations and pet policies. By signing a pet addendum:

The landlord gives the tenant permission to live in the rental property with the animals specified.

The tenant agrees to be responsible for the pet and any damage caused by it.

If you allow pets in your rental, you’ll need to include the following in your pet addendum:

  • Pet policy
  • Tenant responsibilities
  • Pet rent amount
  • Pet deposit amount
  • Nonrefundable pet fees

Zillow Rental Manager offers free, state-specific, customizable online lease agreements for select locations. You can customize your lease to include the type, gender, name, breed, weight and license number of a tenant’s pet.

Adding details about a pet on a Zillow lease to create a pet lease addendum.

In a Zillow lease agreement, you’re also able to specify details about any required pet insurance or pet fees, if pets are allowed.

What to include in a pet policy for renters

Create a clearly written pet policy — as part of your lease or as a separate pet addendum — that limits your liability if an incident with your tenant’s pet should occur. A pet policy should include: 

1. The types of pets allowed

Be upfront about any limitations on the types of pets you’ll allow. According to Zillow Group research, 31% of renters own dogs and 22% of renters own cats,3 while 46% own other pets.4 If you’re OK with renters having fish, reptiles, birds or other caged animals but not OK with dogs or cats, you’ll want to let them know before they apply.

2. The number of pets allowed

For large animals like dogs and cats, it’s common to have a limit on how many can live on your rental property. Some city laws even require you to limit the number of animals in a residence. Include the type of animal with the limit so they know exactly what is allowed.

3. Any breed restrictions

Some insurance companies and HOAs classify certain dog breeds as more dangerous than other breeds. If this is the case, let prospective renters know which breeds are not allowed. However, accepting or denying pets based solely on their breed isn’t the best way to go. If you’re renting to tenants with dogs, you should meet the tenant and their dog to determine the dog’s temperament.

4. Any size requirements

Instead of restricting pets based on their breed, consider implementing weight or size restrictions. For example, if you’re renting a small apartment, you may want to place a weight or length limit on dogs.

5. Be mindful of service, assistant or emotional support animals

You may need to make allowances if a tenant has a service, assistant or emotional support animal. Service and assistant animals are not considered pets. There is some gray area with emotional support animals, so check with an attorney to make sure your policies are legal and in compliance with fair housing laws.

Tenant requirements to include in a pet addendum

Be sure to retain the right to remove the pet and tenant or terminate the lease if the pet or tenant is in serious violation of your agreement or is causing harm. You can work with an attorney to ensure you are compliant with state and local laws. Here are some policies you may want to specify in your pet addendum:

  • Tenants must pick up after their pet (or face a fine).
  • Tenants agree that their pet will not be a nuisance to other tenants or neighbors.
  • Tenants must submit current vaccination and licensing records and provide proof that the pet is spayed or neutered.
  • All dogs must be on a leash at all times when outside of the rental property.
  • Other animals, such as birds or hamsters, will be appropriately caged.
  • No unapproved animals will be housed on the rental property.
  • Tenant is required to pay for any damage caused by the animal.
  • Tenant is required to obtain renters insurance (with coverage for dog bites).

To avoid legal pitfalls, make sure you apply all rules equally to every pet-owning tenant while being mindful of those with service, assistant or emotional support animals.

Should you charge a separate pet deposit, pet rent or pet fee?

Allowing pets in your rental can put you at risk for pet-related property damage. Protect your investment by requiring renters to put down an additional pet deposit. It’s also common for landlords to charge an extra $25 to $100 per month as pet rent, depending on the size, type and number of pets. This additional income can help you cover the damages an animal may cause to the property.

  • Pet rent is a monthly fee paid in addition to the rent and may vary based on the amount and type of pets.
  • A pet deposit is a refundable fee paid by the tenant before move-in and typically ranges from $200 to $500. It’s held by the landlord (just like the security deposit) to cover any damage done by the pet during the lease.
  • A pet fee is a one-time, nonrefundable charge to the tenant in lieu of a pet deposit. Most pet fees are in the $200 to $500 range.

If you charge pet rent, consider lowering the cost of the pet deposit to keep the overall cost of renting your property competitive within your market.

What does the pet deposit cover?

A more substantial deposit can help cover the costs of cleaning stained carpets, repairing chewed surfaces or removing scratches when the tenant vacates the property. Some states have pet deposit laws and may limit the fees you can charge, so check with an attorney first. If there is no pet damage, you will return the pet deposit at the end of the lease, along with the security deposit balance.

How to document damages

Be sure to document the condition of your rental property before your tenant and their pet move in. Or, if your tenant is already living in your rental, make an appointment to do a walkthrough ahead of the pet’s arrival.

With proper rules and preparation, renting a house with pets allowed can make good business sense and keep your property filled for years.

Sources:

1, 2, 4. Zillow Group Consumer Housing Trends Report 2018 survey data

3. Zillow Group Consumer Housing Trends Report 2019

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