Imagine if you will. You are in the process of signing up your home with a property manager while you move across the country to take on a new role at work. She walks through your home, taking copious notes about all the little details of your home, and then she asks, “Will you be accepting pets?” You never thought about it. Should you accept pets? Well, this is a common question for landlords, and there is a lot you need to consider before you answer.
Should You Accept Pets?
You don’t have to be in the rental business long before being asked, “Do you accept pets?” It might be the most common question you get and has been that way for years. It often depends on the landlord’s outlook, but it really depends a lot on the property.
Here we are going to look at the pros and cons of leasing to people with pets to help you come up with the best policy for you and your property.
Reasons To Accept Pets
There was a time when it was hard to rent a home if you had a pet, but times have changed. Now we are seeing modern luxury apartment communities with amenities like dog parks and pet washing stations to attract people with pets. Here are seven reasons to accept pets.
- Easier to Rent – The majority of people have pets. It is estimated that approximately 66% of U.S. households have a pet. 45% of households have a dog, and 32% have a cat. If you don’t accept pets, you are excluding a full two-thirds of the market.
- Less Turnover – Research suggests that people with pets move less often. This may be attributed to it being more difficult to move with pets or the tenant being happier. Either way, less turnover is good for the landlord’s bottom line.
- Assistance Animals – Service Animals and Emotion Support Animals (ESAs) are not considered pets in the eyes of the law and are more popular than ever. Tenants cannot be turned down or charged extra for having an assistance animal. You may be limiting exposure to the market by not allowing pets only to end up with a 60-pound emotional support dog. You might as well have accepted pets.
- Surprise Pets – You may not allow pets, but you could still find one on the property. This happens more than you think. If it does, you will be faced with the decision of whether to enforce your pet policy or not. It may result in an eviction. Is it worth it?
- Higher Rent – Many landlords look at accepting pets to achieve higher rent, while some go as far as to charge pet rent, which is extra rent for a specific pet. Either way, accepting pets can help you increase your monthly revenue.
- Pro Pets – Some landlords simply like pets. You may be surprised how many landlords accept pets because they have pets themselves and want to be pet-friendly. Landlords are people too, and not everything is just about the bottom line.
- Changing Attitudes – Pets have become a bigger part of people’s lives, almost like surrogate kids. People are taking better care of their pets. There are dog walkers, pet sitters, doggie day care, and pet hotels. The hospitality industry is more welcoming to pets, and now so are housing providers.
Reasons Not to Accept Pets
There are some situations where it is best not to rent to tenants with pets. This may be because a particular property does not work well for pets or some other landlord-specific reason. Here are some reasons not to accept pets.
- Fragile Features – Some properties have special features that don’t work well for pets. Examples include historical homes with delicate wood floors and antique built-ins that could be permanently harmed or modern homes with high-end finishes that are easy to damage and expensive to repair. Sometimes it is just not worth taking the chance.
- Inappropriate Conditions – Some apartment buildings are not appropriate for pets. They may have small living spaces, poor sound insulation, and feel congested. These properties are generally at the most affordable price points. Pet noise like barking and pacing, along with the lack of a suitable area to take the pet outside, can be unconducive to peaceful living. Some properties are just not ideal for pets.
- Special Circumstances - Some landlords may have special circumstances, like a strong pet allergy. This does not matter if the landlord is not going to move back in. However, if they are highly allergic to cats and plan on moving back in, then it may matter a lot. This is not typical, but under our current laws, it is the property owner’s prerogative.
If you are going to accept pets, do it right.
More landlords are accepting pets. If you are going to do it, you need to do it right. You need to figure out what pet policies are appropriate for you and your property. This will be a great topic for a future blog.
Some things to consider include pet screening, size limits, breed restrictions, insurance requirements, pet rent, additional deposits, maximum number of pets, additional inspections, and whether you will have a special pet addendum included in your lease.
A professional property management company can help if needed. They will have experience to draw from and should have whatever forms or verbiage ready to insert into your lease agreements.
Know the Laws Regarding Pets!
Whether you accept pets or not, you need to know the law. For example, you need to know how to treat service and emotional support animals. These assistance animals are technically not considered pets, so you can’t charge extra or decline tenants for having them.
You also must be careful about how you handle any “pet deposits” if that is something you do. Pet deposits are essentially additional deposits with a stipulation restricting use only to pet-related damage. That is why we prefer to use an “additional deposit” without the pet stipulation. Either way, those deposits are still subject to the maximum limits set out in AB-12.
The laws are always changing and can vary depending on the type of property and its location. Just remember that people can get very emotional regarding their pets and will often go to extremes to get their way regarding a pet.
This is another reason why so many landlords are enlisting the services of a property management company.
Bottom Line
One of the most basic and longstanding questions landlords are asked is whether they accept pets. Some do and some don’t. Should you accept pets? Well, it depends on you and the specific property. Reasons to accept pets include easier to rent, less turnover, assistance animals, surprise pets, higher rent, pro-pet, and changing attitudes. Reasons not to accept pets include fragile features, inappropriate conditions, along other special circumstances you may have.
There may be more pros than cons, but you need to consider them all when deciding what is best for your specific situation. If you do decide to accept pets, you'd better do it right. Some things to consider include pet screening, size limits, breed restrictions, insurance requirements, pet rent, additional deposits, the maximum number of pets allowed, additional inspections, and whether a special pet addendum will be included in your lease.
Follow the law and be aware of things like the difference between pets and assistance animals. You need to comply with AB-12 regarding deposits and be aware of any new laws that apply to pets. This is one more reason people are choosing to enlist the help of a professional property manager.
Thank You
Thank you, and we hope that you found this helpful and informative. Remember, we are not attorneys, so we don’t give legal advice. Laws are always changing and vary depending on the specific municipality in which the property is located. For legal advice, please consult a real estate attorney familiar with the laws in your area.
For Real Estate Advice
If you are looking for a reliable property management company to help you handle a rental property or a real estate broker to guide you through the sales process in Long Beach, Los Angeles, or Orange County, California, or you are just considering it and have a few questions about real estate, contact the Mike Dunfee Group today! We are happy to help.
Dunfee Real Estate Services, Inc. DRE # 02026232
