Should You Allow Pets in Your Rentals? Pros, Cons, and Policies

Allowing pets in your rental property is one of the most hotly debated topics among landlords. On one hand, it can attract a broader pool of tenants and boost profitability. On the other, pets can bring complications like property damage and noise complaints. So, should you allow pets in your rentals? Let’s break down the pros, cons, and smart policies to help you make an informed decision.

The Pros of Allowing Pets

1. Larger Tenant Pool

   More than 70% of U.S. households own pets. By allowing pets, you open your doors to a significantly larger group of prospective tenants, many of whom are willing to pay a premium for pet-friendly housing.

   
   

2. Higher Rent Potential

   Pet-friendly rentals often command higher rents. It’s common to charge pet rent (e.g., $25–$50/month per pet), non-refundable pet fees, or pet deposits, all of which can increase your bottom line.

   
   

3. Longer Tenancy

   Pet owners tend to stay longer in rentals because pet-friendly options are limited. This can help reduce tenant turnover and the costs associated with vacancies.

   
   

4. Increased Tenant Satisfaction

   Pet owners who find a welcoming rental are often more appreciative and more likely to treat your property with respect.

The Cons of Allowing Pets

1. Property Damage

   From scratched floors to chewed baseboards, some pets can cause serious wear and tear. Even well-behaved animals can have accidents that result in lingering odors or stains.

   
   

2. Allergies and Liability

   Future tenants may have allergies to pet dander, and certain breeds may pose liability risks. While you can require renters insurance, incidents like bites or injuries could still create legal headaches.

   
   

3. Noise Complaints

   Dogs that bark excessively or animals that are left alone for long periods can become a nuisance to neighbors, impacting your relationship with tenants or HOA regulations.

   
   

4. Cleaning and Maintenance Costs

   Even with security deposits, the cost of deep cleaning or repairing pet-related damage can add up quickly, especially if you allow multiple pets or larger animals.

Smart Pet Policies for Landlords

If you decide to allow pets, setting clear and enforceable policies is key to protecting your investment.

1. Creating a Strong Pet Agreement

   If you choose to allow pets, a solid pet agreement is your best defense against potential issues. This agreement should be a formal addendum to your lease, not just a verbal understanding. It sets expectations for pet behavior, outlines the tenant’s responsibilities, and protects you legally and financially.

   
   

   What to Include in a Pet Agreement:

   1. Pet Description

      • Type, breed, weight, age, name, and color of the pet(s)

      • Vaccination and license records

      • Any identification like a microchip number

   2. Approved Pets Only Clause

      • Clearly state that only the listed pets are allowed, no substitutions, replacements, or additional pets without written approval.

   3. Behavior Expectations

      • Pets must not disturb neighbors (e.g., barking, aggressive behavior).

      • Pets must be house-trained.

      • Pets cannot be left unattended for long periods.

      • Waste must be promptly removed from the property.

   4. Damage Responsibility

      • Tenants are fully responsible for any damage caused by their pets, including scratching, chewing, odor, and pest control if needed.

   5. Restricted Areas

      • You may prohibit pets in certain rooms or outdoor spaces (e.g., shared yards or flower beds).

   6. Insurance Requirements

      • Tenant must carry renters insurance with pet liability coverage.

      • You may require the policy to name you (the landlord) as an “additional insured.”

   7. End-of-Lease Conditions

      • Require professional carpet and upholstery cleaning.

      • Outline inspection procedures to assess for odor or damage.

   8. Breach of Agreement

      • State that violating any part of the agreement (unauthorized pets, damages, etc.) is grounds for lease termination or eviction.

   
   

2. Charge a Pet Fee, Deposit, or Pet Rent

   Offset potential damages with non-refundable pet fees or refundable pet deposits. Monthly pet rent adds extra income while helping cover wear and tear.

   
   

   • Pet Fee (Non-refundable)

     • Typical Range: $100–$300 per pet

     • This is a one-time fee to cover additional cleaning or wear and tear.

     • It’s not returned at the end of the lease.

   • Pet Deposit (Refundable)

     • Typical Range: $200–$500

     • Held like a security deposit; refundable if there’s no pet-related damage.

     • Some states limit how much you can collect, so check local laws.

   • Pet Rent (Monthly Charge)

     • Typical Range: $25–$50/month per pet

     • Ongoing income to offset increased maintenance and potential liability.

     • Tenants may be more comfortable with pet rent than a large upfront fee.

   • Tip: Avoid charging all three (fee + deposit + rent), as this may feel excessive to tenants. Most landlords choose either a pet deposit or a fee, plus monthly pet rent.

   
   

3. Screen Pets Like You Screen Tenants

   Ask for vet records, pet references, or even meet the pet if necessary. Knowing their temperament and history can help you avoid future problems.

Final Thoughts

Allowing pets in your rentals can be a smart move, if you go in with your eyes open and the right protections in place. The key is balancing risk and reward. If you’re in a competitive rental market, being pet-friendly could give you the edge you need. But if your property is high-end or hard to maintain, a no-pets policy might make more sense.

Whichever route you choose, consistent enforcement and a well-written pet policy will go a long way in protecting both your property and your peace of mind.