Opening your rental home up to pet owners is a great way to increase your potential rental pool. However, it also comes with risks. It’s important to weigh the potential increase in profit with the risks to determine if allowing pets is right for you. If you allow a pet that causes a lot of damage, then the tenant ends up costing you more than what you made in net profit.
This guide will show you how to mitigate your risk when renting to pet owners.
1. Charge a Pet Deposit
In addition to charging a security deposit, you should also charge a pet deposit. Texas does not have any laws that specifically speak to pet deposits, but most rental property owners stick to the guidelines set out for the security deposit. Owners typically charge a few hundred dollars. You’ll want to consider charging one primary pet deposit, then an additional amount for additional pets.
If you decide to charge a pet deposit, clearly outline in the lease that this deposit is not refundable. Typical tenant deposits are refundable, but you don’t want to do this with the pet deposit. Explain to potential tenants that this non-refundable deposit is required to clean and de-pet the home when they move out.
Some landlords also charge a higher monthly rent. You’ll see this term often called “pet rent”. You could charge an additional $30 to $100 per month. The amount you charge could be based on the type or size of the animal.
2. Place Restrictions on Allowed Pets
Your lease should contain an overall “no pet” policy. Then create exceptions for the pets that you will allow. This enables you to exclude all pets except the one that the applicant is applying with. This type of lease structure is crucial because otherwise, your lease would generically allow pets. If your lease openly allows dogs, pet owners could apply with one dog and then get another without your permission once they are a tenant.
You can also consider adding a small pet exception. These are small animals that typically live in cages and won’t present a big damage risk to the property. Tenants could have fish, small birds, rodents, or reptiles.
3. Require Paperwork for Pets
Require tenants to provide you with vet-issued documentation that their pets have the required vaccines. You can also require that pets be spayed or neutered. This helps reduce aggressiveness and unwanted litters.
Putting these requirements in place ensures you choose tenants that are responsible pet owners. You want tenants that are going to be actively engaged in the care and training of their pets. This results in better-behaved animals and less damage to your home.
4. Furnish With Durable Materials
When you decide that it’s time to update the home. Focus on choosing durable materials. This includes tough paint for the walls that can withstand high traffic areas and heavy cleaning. Choose a flooring material that isn’t susceptible to water and won’t get easily torn up from dog claws.
5. Ask For References
Ask applicants for pet references from previous landlords. This will give you a better idea of what to expect. A previous landlord can tell you about how the property was kept and the condition it was left in. A former landlord can also give you a third-party opinion about the animal’s training and temperament. Animals with a history of aggression or biting will present an increased liability for you.
6. Proactive Enforcement
If you find that a tenant has violated their lease’s pet policy, be proactive about enforcing the terms. This means notifying the tenant of the violation and requesting that they correct the situation. If they fail to do so, then you may pursue eviction proceedings.
Contact our team of property managers and let us help you protect your property while also allowing pets.
