The Property Owner's Guide to Pet Rent

Did you know that more than half of American households, including rentals, now include at least one pet? This surge, partly fueled by the pandemic, has sparked a significant shift in the housing market​​.

With Millennials and Gen Z leading the charge, representing the largest share of pet owners in the U.S., the demand for pet-friendly apartments has never been higher​​. This trend isn't just a fad; it's reshaping how property managers approach their rental policies. Pet rent has become a common solution, balancing the demand for pet-friendly housing with the need to manage potential property damage and maintenance issues.

Embracing pet-friendly policies comes with notable benefits. Properties that welcome pets tend to see lower tenant turnover, as pet owners often find it challenging to locate suitable pet-friendly accommodations. Once they do, they're more likely to stay put, bringing stability and continuous occupancy for property owners​​.

In this article we'll cover the legal landscape, different pet rent models, and strategies for managing pet-related wear and tear, providing you with a comprehensive guide to navigate this increasingly important aspect of the rental market.

What is pet rent?

Pet rent is an additional monthly charge levied by rental property owners on tenants who own pets. This fee is designed to cover potential costs associated with wear and tear, maintenance, and any additional risks pets might pose to the rental property.

For example, a rental property owner in a city apartment complex might charge $25 per month for a cat and $50 for a large dog, reflecting the varying impacts different pets can have on a property.

The difference between pet rent, pet fees, and pet deposits

• Pet rent: A recurring monthly fee charged by property owners to tenants with pets, serving as a recurring source of income to cover costs and potential damages caused by the animals. It's generally lower than regular rent and is charged per pet.
• Pet fee: A one-time, non-refundable fee paid by the tenant at the beginning of the lease. This fee typically covers cleaning and general maintenance related to pets, such as repairs needed due to pet damages. The amount can vary between $50 - $500.
• Pet deposit: Typically a refundable payment, for example, 40-80% of the monthly rent, similar to a security deposit which is paid at the start of the tenancy. If no pet-related damages occur, the deposit is returned at the end of the lease.

Pet rent vs. regular rent

While regular rent covers the cost of occupying a rental property, pet rent is specifically designed to address potential pet-related issues. It helps property owners manage the additional expenses of allowing pets on their premises, such as more frequent carpet cleaning, replacing flooring, or repainting walls. Pet rent is often determined by factors such as location, number of pets, and type of pets allowed in the rental property.

Is pet rent legal?

Pet rent legality depends on state and local laws, which may vary. For example, in California, landlords are allowed to charge pet rent but must adhere to a total deposit limit (security deposit plus pet deposit). In contrast, some states might have stricter regulations or even prohibit the charging of pet rent altogether.

Legal debates and changes in legislation regarding pet rent are ongoing. As pet-friendly housing becomes more in demand, some jurisdictions are re-evaluating their laws to ensure fairness for both tenants and property owners while accommodating the growing number of pet owners. For instance, recent discussions in New York City have revolved around fair housing laws and the need to update regulations to better reflect the city's high number of pet-owning renters.

Pet rent: A tenant's perspective

Pet-owning prospective tenants should weigh the advantages and disadvantages of renting from a landlord with a pet rent policy and be aware of their local laws and regulations.

Advantages for tenants

Pet-owning tenants can enjoy several advantages when they choose a rental property with a pet rent policy:

• Allows tenants to keep pets in their living space without any hassle.
• Pet rent reduces the upfront costs associated with non-refundable pet fees. Instead of paying a large lump sum fee, tenants can spread the cost over several months, enabling them to more comfortably handle their pet-related expenses.
• Properties that allow for pet rent may offer other pet-friendly amenities or services, providing more value for the tenant.
• Pet rent policies often have specific guidelines in place that outline the obligations and responsibilities of both tenants and property owners, ensuring that the needs of all parties are considered.

Disadvantages for tenants

Despite its advantages, pet rent presents certain challenges and considerations for pet-owning tenants.

• There are higher monthly costs associated with pet rent. Throughout a lease, these additional fees can add up, putting pressure on a tenant's budget.
• Non-refundable pet fees can still be levied on top of pet rent, resulting in additional upfront costs for tenants.
• Property owners might limit the size, breed, or number of pets allowed in a unit, which can limit the housing options available to certain pet owners.

Pet rent: A property owner's viewpoint

Pet rent from a property owner's perspective is a complex balance of financial benefits and challenges associated with accommodating furry friends in rental properties.

Benefits for property owners

• Pet rent serves as a supplementary income stream, offsetting the associated costs of allowing pets in a rental home.
• A study by the American Pet Products Association shows that 66% of U.S. households own a pet, indicating that pet-friendly properties experience higher demand, leading to increased occupancy rates.
• Charging pet rent provides a consistent monthly revenue stream, allowing property owners to mitigate pet-related expenses without requiring substantial upfront pet deposits or fees. This makes the property more desirable to a wider tenant base, attracting long-term potential tenants and ultimately minimizing tenant turnover.

Potential drawbacks for property owners

Despite the potential financial benefits, there are certain drawbacks for property owners who opt to allow pets and charge pet rent.

• The primary risk involves potential property damage by pets. While pet rent can help cover these costs, there is no guarantee that the monthly fees for pet rent will be sufficient to cover all expenses related to pet damage.
• Legal constraints are another consideration — some jurisdictions cap the total amount that can be charged for pet rent and deposits.
• Managing pet-related complaints or issues among tenants can be challenging, requiring clear guidelines and effective dispute-resolution mechanisms.

To ensure a successful pet rent policy, property owners should consider drafting a detailed pet addendum as part of the lease agreement. This addendum must clearly outline the pet-related responsibilities of the tenant, any restrictions on breeds or sizes of pets, and any fees or deposits required.

Alternatives to pet rent fees

Property owners who wish to accommodate tenants with pets can explore several alternatives to pet rent fees. By considering different rental options, they can minimize the potential risks and costs associated with having pets on their properties.

• A non-refundable pet fee: A one-time charge not returned at the end of the lease, covering initial pet-related expenses.
• Pet deposits: A refundable deposit, similar to a security deposit, used to cover any pet-related damages created during the tenancy.
• Renters insurance with pet liabilities: Requiring tenants to obtain insurance that covers pet-related damages, reducing financial risks for property owners.
• Specific pet policies in rental agreements: Implementing detailed policies regarding pet behavior, hygiene, and tenant responsibilities to encourage responsible pet ownership.

The impact of pets on rental properties

Property owners face the challenge of managing the additional cost of pets in rental properties as well as potential noise complaints. This involves a comprehensive approach that addresses the physical impact on the property, financial implications, and the importance of clear policy guidelines within lease agreements.

To effectively manage these challenges, property managers and owners adopt a range of strategies:

• Implementing higher pet rent or requiring pet deposits from tenants to cover the additional maintenance costs.
• Establishing a detailed pet policy within the lease agreement. This includes setting out an additional pet-related fee or responsibilities related to pets and outlining specific rules about pet types, breeds, size limits, and the number of pets allowed.
• Ensuring the pet policy complies with laws like the Fair Housing Act, particularly regarding accommodations for service animals and emotional support pets (more about this below).

This strategy helps maintain the balance between offering pet-friendly accommodations and preserving the quality and value of the rental property.

Special considerations and state-specific laws

In addition to federal laws, property owners should also consider state and local laws regarding pet rent and pet policies. These regulations can vary significantly from one region to another, affecting everything from pet rent to breed restrictions.

Regional variations

In some states, like California, regulations limit the total security deposit a landlord can charge, including for pets. For example, in California, landlords can request a security deposit of up to two months' rent for unfurnished units and three months' rent for furnished ones.

Furthermore, some local governments have specific regulations regarding the breeds or number of pets that can be kept in rental properties. These limits are crucial for rental property owners to consider when deciding on pet deposit amounts.

Balancing legal requirements and property policies

Property owners must be aware of the legal rights and exceptions associated with service animals and emotional support pets. Under the Fair Housing Act, property owners must make reasonable accommodations for tenants with disabilities, including allowing service animals and emotional support pets, even if there are pet restrictions or additional pet fees in place.

These animals assist their owners in various ways and are not considered merely pets, so typical pet rent and fees should not be applied. This accommodation is a legal requirement and not subject to the usual pet policies of rental properties. Property owners are advised to research local laws thoroughly to ensure that their pet policies are compliant with both state and municipal regulations.

It's a common misconception that all rental properties must allow pets. While it is true that property owners must accommodate service animals and emotional support pets, they still have the right to establish their pet policies, which can include restrictions or prohibitions on specific breeds or types of pets.

The future of pet rent

Advocacy groups and tenant rights organizations play an essential role in shaping pet-related policies. They're pushing for more inclusive and accessible housing for responsible pet owners, ensuring that property owners implement fair policies that protect both the tenant and the property. They're also fighting against breed restrictions and advocating for more pet deposit legislation across different states.

As a result of their efforts, some industry best practices have emerged:

1. Detailed pet policies: Property owners should establish a comprehensive pet addendum that outlines responsible pet ownership expectations, pet rent fees, and pet restrictions.
2. Pet interviews or assessments: Property owners may consider conducting pet interviews to assess a pet's behavior, compatibility with other residents, and suitability for the property.
3. Pet amenities: Providing pet amenities, such as dog parks or pet washing stations, can increase tenant satisfaction and the overall attractiveness of the property.
4. Regular inspections: Performing periodic inspections allows property owners to assess any pet-related damages and address potential issues promptly to avoid violating the lease.

Navigating pet-friendly rentals

The rental market is evolving with the increasing demand for pet-friendly housing. Property owners are adapting by integrating flexible pet policies and innovative amenities. Key to success in this changing landscape is balancing tenant needs with property maintenance and legal compliance.

Azibo offers valuable support in managing these aspects efficiently. As we embrace this shift, staying informed and proactive is essential for a harmonious and successful pet-friendly rental environment.

Pet rent FAQs

Is pet rent legal in NYC?

In NYC, many landlords charge pet rent, and its cost ranges depending on the property. It's worth noting that this additional charge is legal.

Are pet fees legal in Oregon?

In Oregon, rental property owners can legally charge pet fees, often as a one-time fee or part of a pet addendum in the lease.

Can landlords in Oregon charge pet rent?

Yes, landlords in Oregon are allowed to charge pet rent, which may vary depending on the rental property.

Can landlords refuse pets in the USA?

Most landlords in the USA have the right to refuse pets, with the exception being service animals and emotional support animals due to federal laws.