A growing number of renters have pets, so allowing pets at your income property as a landlord can help increase your potential pool of tenants.
Allowing pets certainly has its pros and cons. However, there are a few things you can do to protect yourself and your property when permitting pets at your rental. These include having a clause about pets in your lease specifying the type and number of pets allowed and charging a pet deposit, pet fee, or pet rent to cover any potential damages.
It’s important to know the difference between pet charges to ensure you aren’t overcharging or restricting tenants too much, which could scare off potential renters. Here’s the difference between pet deposits, pet fees, and pet rent.
Pet Deposit: Money You Refund Tenants
A pet deposit functions like a traditional security deposit but is separate and reserved exclusively for damage that pets may cause to the property. Since it’s a deposit, if the pet has not caused any damage to the unit, you must return the deposit at the end of the lease term.
It’s essential to document your income property with photos before your tenants move in. This way, you can compare before and after photos to assess any damage and provide documentation to tenants should you need to keep some or all of their deposit.
The amount you charge for the pet deposit depends on the size and number of pets and can range from $100 to $500. For example, tenants with a cat would pay less than tenants with a large dog. A pet deposit can be charged in conjunction with pet rent, but not with a pet fee.
Pet Fee: A One-Time Non-Refundable Payment
A pet fee is a one-time payment that your tenants make to cover any potential damages to the unit by the animal or animals. Again, this fee will vary depending on the size and number of animals. A pet fee is like a security deposit but non-refundable.
Pet fees can be charged in addition to pet rent, but not in addition to a security deposit. Pet fees can be in a similar range to a pet deposit, such as $100 per pet or more if the animal is larger or has more potential to cause damage.
Pet Rent: A Monthly Non-Refundable Fee
Pet rent is a separate charge and is different from a pet fee or a pet deposit. Pet rent is typically on the lower side, anywhere from $10 to $50 or more per month. Many landlords charge a set fee per animal, such as an additional $10 a month per animal.
Your tenants would pay the pet rent in addition to their normal rent every month, and this extra amount is non-refundable. Landlords often charge a flat pet rent fee in addition to either a pet fee or a security deposit.
Remember Service Animals Do Not Apply
Although you can charge a deposit or fee in addition to pet rent as a landlord, remember that service animals are not considered pets. Therefore, you cannot charge additional fees or pet rent for service or emotional support animals. Even if you do not allow pets at your rental property, you must allow service animals.
What’s the Best Way to Structure Your Pet Policy?
Have you decided to allow pets but aren’t sure what the right restrictions are, or how much you should charge in pet rent or pet fees? If so, contact FAS Management to find out more about how we can help you structure your lease and appeal to tenants with your new pet policy. Call us at (202) 337-5080 today.
