Pet deposit or rent premium?

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This topic contains 3 replies, has 3 voices, and was last updated by  JennR 9 months, 3 weeks ago.

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  • #1312

    JennR
    Participant

    Hi. I recently purchased my first multi-family, and am in the process of renting out one of the units. One of the applicants has a small dog.

    Do you allow dogs? If so, do you charge a refundable or non-refundable deposit? If so, how much?

    Or, do you charge more in rent in lieu of a deposit?

    Other thoughts here?

  • #1321

    Chelizno1103
    Participant

    It would all depend on what you are comfortable with. If you are comfortable allowing pets then that will open up a larger pool of potential renters. It will also open up the possibility of damage being done to the rental as well as more required cleaning between tenants. But again it’s more of a prefernece. Definitely check with your insurer and see what pets will be covered because some don’t allow certain breeds. There is a great article on nolo.com that goes over a list of what you need to do if you do allow pets, such as making up a pet agreement for all tenants (in case other decide to get a pet in the future) to let them know what kind of pets they can get, weight limits etc. Also making sure they know that it’s only their pet and not to he caring for others pets or fostering animals. It also talks about imposing a pet fee and does and don’ts. It says some states it may be illegal to charge over certain amounts, if you do require one make it reasonable, or it may be a good idea to just make it an overall fee instead of a pet fee. Might be useful to take a look at it.

  • #1323

    RayBan
    Participant

    JennR- first, decide whether you’re comfortable having the dog in your property. I’d set some breed and size restrictions.

    If the choice is between a $100 pet deposit and a $20 rent premium, go with the premium. That ends up being $240 a year for every year the tenant remains, vs just $100 the other way.

    Whatever you charge, it has to be competitive with nearby properties.

  • #1324

    JennR
    Participant

    Thanks Guys, this is helpful!

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