Do I Charge Pet Rent or Deposit?

Should You Go Pet-Friendly? Why Saying 'Yes' to Tenants with Tails Pays Off

One of the most debated decisions a landlord faces is whether to allow pets. At first glance, a "no pets" policy feels like the safest route—no scratches on the floors, no surprise carpet stains, and no late-night barking complaints.

But the truth is, while the risks are real, opening your rental to pets often brings more significant benefits than drawbacks to your bottom line and your peace of mind.

The Power of the Pet-Friendly Market

Nearly 70% of households in the U.S. have a pet. By automatically saying "no" to pets, you instantly cut out the vast majority of prospective tenants.

Pet-friendly rentals are a highly sought-after commodity. They stand out in a competitive market, which usually translates to:

1. Fewer Days Sitting Vacant: Demand is higher, allowing you to fill units faster.
2. A Stronger Applicant Pool: More applicants mean you can be pickier and choose the most qualified tenant.

Stability and Higher Revenue

It’s not just about filling vacancies quickly; it's about keeping them filled.

Pet owners tend to stay longer because it’s much harder for them to move frequently with their furry friends. That stability means fewer turnovers, reduced vacancy loss, and lower re-leasing costs for you.

Financially, tenants are often willing to pay a premium for the convenience of keeping their companions. This can come in the form of:

• Higher Monthly Rent: A small increase (often called pet rent) adds consistent, recurring revenue.
• Non-Refundable Pet Fees or Deposits: This upfront capital helps offset potential future wear and tear.

The Reality of Emotional Support Animals (ESAs)

Here's another crucial reality check: a "no pets" policy is rarely a guarantee against having animals on your property.

Under federal law, tenants can bring in Emotional Support Animals (ESAs) with the proper documentation, and landlords generally cannot deny them, regardless of a written policy.

In practice, a strict "no pets" policy often doesn’t prevent animals—it just forces a tenant who needs an ESA to use their legal right, bypassing your standard rules. This means you have a pet without any upfront fees or deposits, and with less control.

Allowing pets up front gives you more control and transparency:

• You can set clear lease rules regarding pet behavior.
• You can collect deposits and recurring pet rent to mitigate risk and increase revenue.

By embracing pets, you move from a restrictive, often unenforceable, policy to a profitable and manageable strategy. You cater to a massive segment of the market, secure more stable tenancy, and protect your investment with a solid, comprehensive pet addendum.