Pros and Cons of Allowing Tenants with Pets

Pros and Cons of Allowing Tenants with Pets

Sixty-eight percent of U.S. households own a pet, according to the 2017-2018 survey conducted by the American Pet Products Association (APPA).  Firepaw.org states almost 50% of renters own a pet.

This means about half of your potential tenants would have a pet.  Here, we discuss potential benefits and detriments that come with allowing pets in your rental property.

Potential Benefits of Allowing Tenants with Pets

Competitive Edge: Because about 50% of the tenants would have a pet, allowing pets would double the size of your potential tenants compared to landlords who will not accept pets.  This gives you a powerful advantage in a crowded rental market.

Higher Rent: It is likely that tenants who own pets would not mind paying a slightly higher rent for a property that allows pets, if no other pet-friendly properties exist in the desired price range.

Longer Tenancy: As finding pet-friendly properties can be a challenge, pet owners tend to stay longer in a rental property.  Also, having pets tend to reduce stress and make for happier tenants, which also contributes to longer stay.

Better Finances: You’ll of course need to verify income and run credit checks, but it is said that 65% of pet owners earn over $50,000 a year, making them more financially stable as tenants.

Potential Detriments of Allowing Tenants with Pets

Damages: Untrained animals can have accidents on the carpet, as well as scratch floors or chew on carpets.

Noise: Dog’s barking could be disturbing to the neighbors and lead to complaints.

Liability: There may be a risk of the animal biting the neighbors.

Pet Odors: Untrained pets having accidents will cause odor.

Helpful Tips When Deciding on a Pet Policy

While the potential negatives could discourage landlords from allowing tenants with pets, you can minimize your risk by following these tips:

• Liability Insurance: Check your insurance policy to make sure they include liability coverage for pets.  They may have certain exclusions for aggressive breeds, so that may need to factor into your pet policy.
• Pet Addendum: Make sure to include a pet addendum in your lease agreement, so that tenants are signing off on your pet policy before moving in (e.g., how many pets are allowed, restrictions in terms of weight/breed, and the amount of pet fee or pet deposit, etc.
• Obtain the Pet’s Information: If possible, meet the pet in person or at least get the current photo.  You will want to know how long the tenants have had the pet, how old the pet is, whether the pet has caused damage to a property in the past, whether the pet has bitten anyone in the past, and whether the pet has had the proper vaccination and licenses.  Also, you will want to know who will be taking care of the pet when the tenant is not home.
• Select the Right Tenant: Obviously, you will want to perform the standard background check for the owner.  You will also be assessing how responsible the tenant will be in regard to the pet’s behavior.
• Charge a Pet Fee or a Pet Deposit: A refundable pet deposit could motivate the pet owner to take extra care of the pet’s behavior, while a non-refundable pet fee also makes sense to compensate the landlord for the excess wear and tear that the property may endure due to having pets.

Know the Fair Housing Law: In recent years, many tenants began claiming their pets as emotional support animals.  The Fair Housing Act requires housing facilities to allow service dogs and emotional support animals, if necessary, for a person with a disability to have an equal opportunity to use and enjoy their home.  This is a gray area sometimes, and you will want to see some documentation to prove the tenant’s disability status as well as the emotional support animal status of the pet.