There are several pros, as well as several disadvantages, to allowing tenants to have pets in your rental properties. The majority of landlords that ban pets do so because of the potential expense of repairing pet damage. There are many methods for offsetting these costs, including pet deposits, pet fees, and pet rent. Allowing pets on your property often allows you to charge more rent, as well as significantly expands the number of potential tenants. Studies have also shown that tenants with pets tend to stay at the same rental property for a longer average time.
Pet Deposits, Pet Fees, and Pet Rent
A pet deposit is very similar to a security deposit. They are intended to be refunded if there is no pet damage after the tenant has vacated. Just like a security deposit, pet damage repair expenses must be carefully recorded to justify keeping part or all of a pet deposit. A pet fee is a one-time fee that is not refundable. This fee is to be kept, whether or not there is pet damage after the tenant leaves. Finally, pet rent is a monthly addition to the rent to help offset potential repair expenses.
What Should you Charge?
Ultimately, what you charge (as well as whether or not you allow pets) is up to your discretion. There may be laws in your state that dictate what you can charge your tenants for pets. For example, 200-500 dollars is a relatively typical cost for a pet fee, though that will again depend on the relevant laws.
It is important to familiarize yourself with the laws in your state. Additionally, keep in mind that you must allow service dogs and companion animals in your property and you can’t charge a fee in these situations. To learn more about pet deposits and whether or not you should allow pets in your rental properties, contact us at the Keyrenter in Elite today!
