Landlords who allow pets at their rentals often collect a pet deposit or pet fee. For many landlords, though, collecting this additional money might not be the best way to address concerns about pet-related damage. In some states, landlords who collect pet fees or deposits might even be breaking the law.
Security deposits, pet deposits, and pet fees are three of the most common charges landlords assess. Some landlords also collect pet rent. Different laws apply to each of these practices.
Security Deposits. Landlords everywhere collect a security deposit (often equal to one months’ rent) at the beginning of a tenancy. In general, landlords can use security deposits to cover unpaid rent and repair tenant-caused damage, so long as they comply with state security deposit laws. Landlords must also follow their state's law on returning security deposits, and refund any unused funds to the tenant.
Pet Deposits. In addition to security deposits, many landlords charge pet-owning tenants a separate deposit. This money is to be used by the landlord to pay for repairing any damage the tenant’s pet causes to the rental. Like security deposits, any amount the landlord doesn’t use must be returned to the tenant after the end of the tenancy.
Pet Fees. Unlike pet deposits, pet fees are non-refundable. Typically, a pet fee is a one-time charge landlords assess at the beginning of the tenancy.
Pet Rent. Some landlords specify that if a tenant has a pet, the rent will be a certain amount more than the stated rent. Just like regular rent, pet rent is non-refundable, and failure to pay it might give a landlord grounds to end the tenancy. It’s not unusual for landlords to collect a pet deposit in addition to pet rent.
Collecting a general security deposit is legal everywhere, subject to the limits and other conditions imposed by state and local (such as rent control) laws.
Charging a pet deposit or pet fee isn’t always legal, though. In some states, such as California, and under most rent control laws, landlords cannot charge more than a specified sum as a deposit. This sum covers all types of deposits. So, when the total amount of deposits for a rental is already at the state maximum, a landlord cannot tack on an additional pet deposit. Some states also prohibit non-refundable fees such as pet fees (or restrict landlords’ ability to collect them). Landlords considering charging a pet deposit or fee might want to consult with a local landlord-tenant attorney to make sure they comply with state and local laws.
Higher rent for pet-owning tenants is legal—rent is rent, no matter how the landlord divvies it up. However, landlords with property subject to rent control still must keep their total rent at or below the legal maximum allowed by the rent control ordinance.
No matter whether it’s called a pet deposit, pet fee, or pet rent, though, landlords cannot charge additional amounts to tenants with disabilities who have a service or assistance animal.
Designating a fee or deposit for pet-related damages has some pitfalls. Many laws prohibit landlords from using a pet deposit for anything other than pet-caused expenses. For example, if a pet is well-behaved, but the owner destroys all the cabinets in the rental, the landlord can apply only the security deposit to the repairs—not the pet deposit. Likewise, if repairing damage clearly caused by a pet—such as scratch marks on all the doors—costs more than the pet deposit, the landlord can’t dip into the security deposit to cover the expense.
It’s likely that most courts would apply the same rules for pet fees: When a landlord charges a pet fee, the pet fee will be the landlord’s only recourse when a tenant’s pet causes damage.
So what does this mean? Landlords who charge a pet deposit or fee should be confident that the amount they collect will cover any and all pet-related repair costs. Otherwise, they might be left footing the surplus expenses themselves.
Finally, additional deposits and fees could turn off solid renters who might be stretched thin after putting down a standard security deposit (and possibly first and last month’s rent). A good alternative might be to charge pet rent.
Before assessing a pet fee or pet rent, landlords should research what other landlords in their market are charging for pets. Consider contacting a local landlords’ association to get information about the going rates, or peruse for-rent postings on apartment rental websites.
You can also arrive at a reasonable fee by drawing on your own experience or the experience of other landlords who have had to repair pet damage. For example, try to find out how much other landlords have spent to remove pet odors from their rentals or refinish claw-scratched hardwood floors.
Not only will unreasonably high amounts turn away potential renters, but they also pose a collection risk for landlords: In the event of a later dispute over unpaid rent or damages, a judge might not be willing to enforce a fee that seems unfair. (However, if you can back up your charge with concrete support of why you collected that much, a court will be much more inclined to find in your favor.)
More often than not, charging a pet-specific fee or deposit isn’t the best option for landlords with pet-friendly rentals. Rather, landlords who are concerned about pet-related damage are better served by requiring a higher security deposit (but still within the limits of their state or local laws). A higher security deposit can then be applied toward unpaid rent as well as all human- and pet-caused damage.
Alternatively, charging pet rent might be a better option than a pet deposit or pet fee. The effects of dirty paws, sharp nails, and occasional bathroom accidents add up over time. By collecting more in rent, landlords can set aside some money to address the additional wear and tear that wouldn’t result from human occupancy alone.
