We are talking today about how a no-pet policy can cost you money on your rental property in the East Bay. First – take a look at how many people have pets. About 50 percent of people looking for rental properties have a family pet. So you’re eliminating half of the rental market by not renting to people with pets. That means it’s going to take you a little longer to find a tenant that doesn’t have a pet. If it takes you a month to find that tenant, you lose the rental income and that’s a month of rent you could have received from someone who has a pet.
Extra Pet Deposit
Another reason to allow pets is that you can collect a larger deposit. Remember that tenants may not have a pet when they move in, but they could possibly get one after they have settled into their new home. They might decide to add a pet to the family. Nine times out of ten, they won’t call you to tell you they are getting a pet. So they’re going to do it anyway, which means you lose the money you could have collected for the extra deposit. If you miss out on the opportunity to bring in an extra security deposit, there could be pet damages when they move out that the security deposit doesn’t cover.
Some landlords charge a pet rent every month, but we don’t recommend it. This creates a scenario at the end of the lease that tenants will feel they don’t have to pay for any pet damage. They have an argument that they paid for that damage already by paying pet rent every month. They could say it’s normal wear and tear for dog or cat to urinate in the house, and if they paid a premium with pet rent, they will have an argument that might stand up in court. Pet rent could indicate they’ve already paid for that damage and then you can’t take it out of the deposit.
It’s much better to allow pets so that you rent your home quickly and everyone knows about the pets when they move in with the tenants. You’ll be able to collect an extra deposit which allows you to comply with landlord tenant law and also preserves your asset.
If you have any questions about pet policy and pet deposits, contact us at Total Property Solutions, and we’d be glad to tell you more.