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Pros & Cons of allowing pets in rental properties

Pets in Rental Properties Making the decision to allow pets in residential rental properties should be not be taken lightly. As a landlord you may be taking on additional costs, responsibility and liability by allowing pets. However, you may also benefit from decreased turnover and a larger rental pool.

Here are few things that investors and/or landlords should consider before determining if they are going to accept pets in their rental units.

Pros

Decreased Turnover: Allowing pets has been shown to actually decrease turnover in tenants. Tenants with pets often have a hard time finding pet friendly rental units. This may discourage them from moving frequently. Because long term tenants can be very desirable, it may make sense to allow pets in your rental unit, providing you are adequately protected from liability and damage.

Larger Rental Pool: Many renters own pets and are therefore looking for rental units that will accommodate their furry (or sometimes not so furry) friends. By not allowing pets in your rental unit, you may be significantly decreasing your potential prospects. Having a larger rental pool, which includes pet owners, may mean lower vacancy rates.

Cons

Property Damage: Even small pets can cause large amounts of unwanted property damage. This may make it more difficult to re-rent or re-sell your property after your tenant has vacated. Because of this you should require a pet fee or pet deposit that can be applied towards correcting any property damage when the tenant vacates the property.

Insurability: Before determining if you will allow pets, it is a good idea to check with your insurance agent to see what your coverage is regarding pets. You will not want to be held liable if your tenant's pet attacks someone. To avoid this, ensure that you have adequate insurance coverage for pets, and check to see if certain types of pets or specific breeds are not covered under your policy. You should also consider requiring the tenant to have separate renter's insurance coverage for their pet and having you named as additional insured on the policy.

Crafting your Pet Policies

If you do decide that you are going to accept pets in your rental property, make sure that your pet policies are clearly outlined in the rental agreement or an addendum to the rental agreement. You should define the types of pets that are and are not allowed. Make sure to include as much detail as possible including breed, age, size, temperament, etc. You should also consider requiring proof of current vaccinations, neutering and licensing. Also, make sure to include stipulations for: tenants providing false information regarding their pets; excessive noise; and aggressive behavior.

Also, make sure to familiarize yourself with local and federal laws regarding rental properties. In Arizona you can find more information in the Arizona Residential Landlord and Tenant Act.

Posted by Bonny Puckett ~ REALTOR ~ Fountain Hills, Scottsdale, AZ on 04/21/2008 02:24 PM

Comments (7)

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7 Comments on Pros & Cons of allowing pets in rental properties

APR

2008

We do not allow pets in our rentals. I guess for us pets are more for home owners. It is hard enough to keep rentals nice.

Bonny,

I typically do not allow pets in my rental properties unles I acquire them with the tenants and pets already in them. Here is how my rental contract reads:

•1. PETS. TENANT WILL NOT keep any pets in or about the Property without the written permission of the Landlord.

THERE ARE ABSOLUTELY NO PETS ALLOWED SUBJECT PROPERTY. THIS WILL BE GROUNDS FOR BREACH OF LEASE AND IMMEDIATE EVICTION. IF YOU ARE CAUGHT WITH A PET IN YOUR UNIT, YOU WILL RECEIVE A FINE OF $______.____ FOR THE VIOLATION. TENANT AGREES TO PAY FINE AS ADDITIONAL RENT. IN ADDITION, IF THE PET IS NOT REMOVED PERMANENTLY FROM THE PROPERTY IN THE TIME FRAME GIVEN BY THE LANDLORD, THEN A ($______.____) PER DAY FINE WILL BE ASSESSED UNTIL SUCH TIME AS THE PET IS REMOVED FROM THE PROPERTY. THIS FINE SHALL BE CONSIDERED AS ADDITIONAL RENT HEREUNDER.

I do allow pets with a large pet deposit, and mainly only allow dogs and animals that live in tanks (turtles, snakes, fish ect)

I have a few rentals that I will allow pets in. Its usually on a case by case issue. Old carpets, yes on pets, new carpets, no on pets.

Carol - You make a great point. It can be very difficult to keep rentals in good condition, and with pets, like some tenants, it can be hit or miss. Some landlords prefer not to take the risk.

Brian - I have spoken with many investors who take an approach similar to yours, approaching the subject of pets on a case by case basis depending on property, the tenant, the pets, or any combination of the above. I recommend also taking into consideration the type of property, as apartment style condos, townhomes and patio homes may not be well suited to large pets or those who require outdoor space.

SQFC - Thanks for sharing the verbiage from your rental agreement. I definitely recommend addressing the possibility of unauthorized pets in the rental agreement. Also, for landlords who don't mind having pets, I suggest including a separate addendum that addresses all aspects of what is and what is not allowed, as well as consequences for violating the agreement.

APR

2008

We suggest to our clients to allow pets. Taking that much of the market offline will certainly reduce your rent and increase vacancy time. Bad pet owners are the problem, not the pets. I agree it is a good idea to limit pets to certain breeds or exclude the agressive breeds. Plus, get more deposit up front.

Robert - Thanks for sharing. I agree that often major challenges with pets are the result of bad, neglectful, or naive pet owners. However accidents do happen, and property owners should be aware of the potential issues before making their decision to allow pets or not.