Landlord Basics: Pooch or No Pooch?
If you are just getting into the long-term real estate investing business, you will need to decide if you want to allow your tenants to keep pets. You may decide on a blanket policy… like no pets, no exceptions… or you may opt to allow only certain types of pets.
Personally, I don’t allow pets. It only takes a few dog or cat accidents for a carpet to be ruined, and oftentimes the floor beneath it. Dogs and cats can also chew and claw doors and woodwork and can destroy landscaping. This can get very expensive. Aside from the repair issues, there may be liability issues as well. You would need to check your local laws, but a landlord could be held financially responsible if a tenant’s dog bites someone in certain situations.
However, there are arguments for allowing pets in your properties. If you don’t allow pets, then you are turning away a portion of prospective tenants. This could lead to longer vacancy periods depending on your local market conditions.
Another option is to limit the type and size of animals you allow. You could prohibit certain messy friends like birds and cats, and only allow goldfish or whatever other small, non-messy animals you are comfortable taking a risk with. Some landlords who do allow dogs restrict them to under 20 pounds, while others want to evaluate on a case by case basis to make sure the animal seems well behaved, isn’t vicious, etc.
If you do decide to allow pets, be sure to get a pet security deposit. In many states, it is legal to have a portion of this fee be nonrefundable. Check your local laws to see how much you can charge and if you can keep any part of the deposit as nonrefundable. Having a nonrefundable fee up front creates a nice guarantee that you can pay for carpet and other needed cleaning following a pet’s residence in your property.
Some landlords also choose to charge an extra monthly premium as pet rent. This gives them additional insurance against possible pet caused damages. Check your local laws to see if this additional rent is legal in your state. Whatever you decide to charge as a deposit and possibly extra rent, make sure to outline it clearly in the lease, and consider using a separate pet agreement. Lastly, make sure you know how many animals your tenant will be keeping, and be sure to do periodic inspections to enforce compliance with the lease… more than one tenant has been known to keep a pet in a “no pets allowed” property.
Until my next post,
James
P.S. While we are still offering it as a free download, you may want to download and listen to the real estate course: Secret Property Management Tips and Tricks. Or, consider upgrading to the Real Estate Investor Bronze Membership.
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