Things to consider when renting to a tenant with a dog…or cat

Things to consider when renting to a tenant with a dog…or cat

A landlord may not want a dog or cat on a rental premise. It is legal for a landlord to deny a tenant’s application if they have an unwanted pet.  However, in many states it is unlawful for a landlord to deny a tenant’s rental application if a dog is assisting a blind, deaf, or otherwise disabled tenant.  In addition to causing unwanted property damage, a landlord may be liable for injuries caused by a renter’s pet.  Although it is not easy to hold a landlord responsible if the pet does not belong to the landlord, there are certain things every landlord should consider when leasing to renters with a pet.

Home Owners Insurance & Renters Insurance

Your home owner’s insurance policy may have a dog exception in it. Always check your insurance policy for restrictions that apply to dogs in rental housing. Unfortunately, dog attacks are a growing and serious problem. Since the 1990s, dog attacks have become one of the biggest single reasons for home insurance claims, with claims running to more than $300 million a year!  Some dogs are almost uninsurable and breed and weight restrictions are common. If your insurance policy does not cover you for your renter’s dog, then require any tenant with a dog, and possibly a cat, to obtain adequate Renters Insurance and add yourself to their renters policy as an additional insured.

Decreased Turnover

On the other hand, allowing a pet can actually decrease your turnover in tenants.  Tenants with a dog or cat often have a hard time finding a “pet friendly palace” and this can discourage them from moving. There is nothing better then a long term renter and, if allowing pets decreases turnover, it makes sense to allow them as long as you are adequately protected from liability and damage.

 

 

GO8 Tip:  Personally, as a Section 8 landlord, I do allow pets with some restrictions. I do not accept any pet that is banned by insurance….no dangerous or banned breeds and a 40 pound weight limit. To protect myself, I add the specific type of pet, the breed, the animal’s weight, and even the name to the pet agreement.  A sample Pet Agreement form that includes indemnification language and covers most of the basics is available from in FORMS.  I also require a $200 non-refundable pet fee, not a security deposit.  Finally, I do require proof of Renters Insurance naming myself as an additional insured. The unit I am renting also has a lot to do with my decision on whether to allow a renter to have a pet.  Obviously, a $200 fee does not cover new carpeting and damage to wood floors.  For this reason, I typically don’t allow pets in homes with wood or carpet flooring.  I have found that limiting pets to rental homes with fenced yards and tile flooring greatly minimizes risk and headache.