Among a laundry list of other decisions you have to make when renting out a property–how much to charge, who to lease to, screening requirements–you also need to discern a pet policy, as well as any pet fees associated with it. If you are debating whether or not to lease your rental as a pet-friendly property, you should first understand the benefits and the drawbacks. To do so, we’ll examine the pros and cons of allowing pets, the difference between pet deposits, pet fees, and pet rent, and how to determine which is best for you.
Pros and Cons of Allowing Pets in Your Rental Units
Before diving into what kind of fees you may be able to charge to renters with pets, you should know what advantages and disadvantages are associated with renting to pet owners.
In recent years, the number of renters who own pets has increased significantly meaning the demand for pet-friendly places has also spiked. Not every landlord or property manager allows pets, so by allowing pets, you increase the size of your eligible applicant pool. Pet owners are also often willing to pay extra when they find a home that accommodates their pet, too, and are more likely to be long-term residents because of how difficult it can be to find a pet-friendly rental that checks all of their boxes.
That being said, renting to pet owners isn’t for everyone. Not only are pets likely to cause damage such as carpet stains, teeth marks, and scratches, but they are also known to be a nuisance to neighbors due to noise disturbances and sanity reasons. Well-trained pets may never cause any issues, however, in a worst-case scenario, some pets can cause physical harm to those around them.
Due to the risks involved with renting to pet owners, it’s important you specify which types of pets and even pet breeds you will allow on your property, any documentation the renter needs to provide, and how you will recover maintenance costs for any damage a renter’s pets may cause during their residency.
What You Need to Know About Pet Deposits
As you weigh the pros and cons of being a pet-friendly landlord, you are likely concerned about the potential damage caused by pets. Much like a standard security deposit, a pet deposit is an additional amount of money you can require a renter pay at the time of lease-signing, or at the time they acquire a new pet, to cover any potential pet-related damage.
Laws, rules, and regulations on pet deposits vary by state, so it’s important to first check what your state or city sees as legal and fair when it comes to charging pet deposits. If your state does allow pet deposits, you may have other options such as charging a one-time fee or collecting pet rent.
What You Need to Know About Pet Fees
While cats and dogs can cause considerable unintended damage to a home, which would be covered by a pet deposit, many landlords are just as concerned that pets will cause general wear and tear to a rental unit just as a person would. Because of the susceptibility to this type of extra and less obvious damage, many states allow landlords to charge an additional upfront cost called a pet fee.
A pet fee is paid upfront just like a pet deposit, however, a pet fee is nonrefundable and must be a reasonable amount that is specifically allocated for the repair of general wear and tear of your rental.
What You Need to Know About Pet Rent
The third form of coverage a landlord can use to protect their property from pet damage is pet rent. Unlike the one-time charges associated with pet deposits and pet fees, pet rent is a recurring monthly charge the landlord can collect. Similarly to pet fees, pet rent is used to cover typical wear and tear a property may incur due to its use by a pet.
Because rental properties come in many forms, pet rent can be a useful way to protect pet-friendly landlords, as pets often cause damage not only in the home but around the property, including outdoor areas and common spaces.
Pet rent is a great option for landlords and renters who desire flexibility, as prices can vary based on the type and size of the pet, or the number of animals allowed. Pet rent is charged as a small monthly fee rather than a sizable lump sum at the beginning of a renter’s lease.
What to Charge For Pet Deposits, Fees, and Rent
Much like deciding how much you should charge for monthly rent or a security deposit, deciding on the amount for pet deposits, fees, and rent shouldn’t be taken lightly. Each set of charges has its own legal restrictions dependent on the state of the rental unit and should be calculated accordingly.
- Pet Deposits – Since pet deposits are an add-on to a standard security deposit and pose a financial burden to renters, pet deposits are generally no more than $500.
- Pet Fees – Fees, of course, are non-refundable, so they are usually lower than pet deposits and typically range from $100-$400.
- Pet Rent – Pet rent acts much like a pet fee but divided up throughout the year, so anywhere from $20-$75 a month is standard.
Whichever option you decide is best for your rental property, understand that if you’re going to allow renters to have pets, then you should consider offsetting any risk with extra deposits or fees. The best first course of action is to learn what is legal in your state and discover what other landlords in your area are charging pet owners.
Now that you know the difference between pet deposits, fees, and rent, you can make the best decision as a landlord for the properties you have available to renters.
Collect pet fees and rent through Zumper
When you use Zumper to collect rent, you have the ability to request one-time charges. If in the event your tenant acquires a pet in the middle of their lease, you can process a one-time charge to collect any pet-related fees or rent. All you have to do is create a one-time payment, describe what the charge is for, and set a due date. Once your renter completes the payment request, you will have the funds in your account as soon as the next day.
Set up rent collection through Zumper today for fast, secure, online payments!
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