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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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.
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.
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.
Some insurance companies and HOAs have restrictions on certain breeds (or weights) of dogs, such as:
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.
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.
You can help minimize the costs associated with maintaining a pet-friendly property by making these improvements before renting to tenants with pets:
These minor changes will make your property desirable to pet owners, as well as make it easier for you to clean.
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:
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.
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:
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.
In a Zillow lease agreement, you’re also able to specify details about any required pet insurance or pet fees, if pets are allowed.
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:
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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
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