Pet-Friendly Rental Policies That Actually Increase Your Income

About 66% of U.S. households own a pet. Among renters under 40, that number is even higher — closer to 72% (APPA 2024 survey). Yet nearly half of all rental listings still say "no pets allowed."

That's a massive mismatch. And it costs landlords real money.

Pet-friendly properties rent faster, retain tenants longer, and generate additional income through pet fees. The trick is structuring your pet policy to capture that income while protecting your property from damage.

Here's how to do it right.

The Financial Case for Allowing Pets

Let's start with the numbers that matter.

Larger applicant pool

Banning pets eliminates 50–70% of potential tenants. In a competitive market, that might not matter. In a soft market, you're looking at longer vacancies and lower leverage on rent.

A property that sits vacant for an extra 2 weeks because you refused a qualified tenant with a cat costs you roughly $750 on a $1,500/month unit. That's more than any pet would damage.

Pet fee income

Structured properly, pet fees add $600–1,800/year per unit:

• Monthly pet rent: $25–75 per pet
• One-time pet fee: $150–300 (non-refundable)
• Pet deposit: $200–500 (refundable)

Two pets at $50/month pet rent = $1,200/year. That's pure income above your base rent.

Longer [tenant retention](/blog/tenant-turnover-cost-guide)

Pet owners stay longer. The American Apartment Owners Association found that tenants with pets have an average tenancy of 46 months compared to 18 months for pet-free tenants.

Why? Moving with pets is hard. Finding another pet-friendly rental is stressful. So pet owners tolerate minor inconveniences and stay put. Every year a tenant renews saves you $2,000–5,000 in turnover costs.

Higher rent tolerance

Pet owners are accustomed to paying more. They're already budgeting for vet bills, food, and pet insurance. A $50–75/month pet premium doesn't faze most pet-owning renters — especially when the alternative is a "no pets" market with limited options.

How to Structure Pet Fees

There are three types of pet-related charges. Use all three for maximum protection and income.

1. Pet Deposit (Refundable)

Amount: $200–500 per pet Purpose: Covers pet-specific damage beyond normal wear and tear Refund: Returned at move-out if no damage

The pet deposit is your insurance policy. It's separate from the standard security deposit. Some states cap total deposit amounts ([California](/blog/california-heloc-guide) limits total deposits to one month's rent as of 2025), so check local laws.

Pro tip: Do a detailed move-in inspection with photos of all flooring, doors, and trim. This makes it easy to document pet damage at move-out and justify deposit deductions.

2. Monthly Pet Rent

Amount: $25–75 per pet per month Purpose: Ongoing income that covers wear and tear Not refundable — this is rent, not a deposit

Monthly pet rent is the biggest income driver. It's straightforward, recurring, and tenants expect it. Most landlords charge $35–50/month per pet.

Pricing by pet type:

• Dogs (under 40 lbs): $35–50/month
• Dogs (40–80 lbs): $50–75/month
• Dogs (over 80 lbs): $65–100/month
• Cats: $25–40/month
• Small caged animals (hamster, fish): $0–15/month

Charging different rates by size is fair and reflects actual risk. A 90-pound dog creates more wear than a 10-pound cat.

3. One-Time Pet Fee (Non-Refundable)

Amount: $150–300 per pet Purpose: Covers administrative costs and initial property prep Not refundable

This fee covers the extra cleaning and inspection you'll do when a pet-owning tenant moves in and out. Some landlords skip this and rely on pet rent alone — either approach works.

Important: Some states don't allow non-refundable fees. Check your local tenant laws before implementing.

What Your Pet Policy Should Include

A clear, written pet policy prevents disputes. Include these elements:

Approved pet types

Specify what's allowed:

• Dogs: yes, with breed/size restrictions (if any)
• Cats: yes, indoor only
• Small caged animals: yes (hamsters, guinea pigs, fish)
• Reptiles: case-by-case
• Birds: case-by-case (noise concerns in multifamily)
• Exotic animals: no
• Livestock/farm animals: no

Maximum number of pets

Two pets is a reasonable limit for most units. Three or more increases wear, noise, and odor issues significantly. For studios and 1-bedrooms, one pet may be more appropriate.

Size and weight limits

Common limits:

• Under 25 lbs: almost universally accepted
• 25–50 lbs: widely accepted
• 50–80 lbs: accepted with higher pet rent
• Over 80 lbs: case-by-case

Weight limits are more defensible than breed restrictions. A well-trained 70-pound lab causes less damage than an untrained 20-pound terrier.

Breed restrictions

This is controversial. Many landlords ban "aggressive breeds" (pit bulls, rottweilers, German shepherds, etc.), but research shows breed alone is a poor predictor of property damage or incidents.

Insurance consideration: Your [landlord insurance](/blog/landlord-insurance-guide) may exclude certain breeds. Check your policy before allowing any dog. If your insurer excludes a breed, you have a legitimate business reason to restrict it — regardless of your personal views.

Alternative approach: Instead of breed restrictions, require:

• Proof of renter's insurance with pet [liability coverage](/blog/homeowners-insurance-complete-guide) ($100,000 minimum)
• Veterinary records showing vaccinations are current
• A meet-and-greet before approval

This screens for responsible owners rather than discriminating by breed.

Tenant responsibilities

Spell these out clearly:

• Pick up waste immediately (for houses/yards)
• Keep dogs leashed in common areas
• Prevent excessive noise (barking complaints = lease violation)
• Pay for any damage beyond normal wear and tear
• Maintain current vaccinations and licensing
• Notify landlord of any additional pets
• Carry renter's insurance with pet liability coverage

Violation consequences

Define what happens when rules are broken:

• First violation: written warning
• Second violation: $50–100 fine
• Third violation: pet must be removed or lease terminated
• Severe incident (bite, major damage): immediate lease review

Service Animals and Emotional Support Animals

This is critical: you cannot charge pet rent, pet deposits, or pet fees for service animals or emotional support animals (ESAs). Federal Fair Housing Act prohibits it.

Service animals: Trained to perform specific tasks for a person with a disability. No breed or size restrictions allowed. No [documentation](/blog/heloc-documentation-requirements) beyond a reasonable accommodation request.

Emotional support animals: Provide comfort through companionship. Require a letter from a licensed mental health professional. You can verify the letter but cannot demand specific medical details.

What you can still do:

• Hold the tenant responsible for any damage the animal causes
• Charge for actual damage from the standard security deposit
• Require the animal to be well-behaved (you can deny if the specific animal poses a direct threat)
• Deny fraudulent ESA letters (online-only mills with no real patient relationship)

What you cannot do:

• Charge any pet-related fee or deposit
• Restrict breed, size, or species
• Require pet insurance specifically for the animal
• Deny housing based on the animal alone

Get comfortable with these rules. Violating Fair Housing laws leads to complaints, fines, and lawsuits.

Protecting Your Property from Pet Damage

Allowing pets doesn't mean accepting destruction. These measures reduce damage significantly:

Flooring

Carpet is the #1 casualty of pet-friendly rentals. Replace it with:

• Luxury vinyl plank (LVP): $2–5/sq ft installed. Waterproof, scratch-resistant, easy to replace individual planks. This is the best flooring for pet-friendly rentals, period.
• Tile: Indestructible but cold and hard. Best for bathrooms and kitchens.
• Laminate: Cheaper than LVP but less water-resistant. Acceptable for low-risk areas.

If you keep carpet, use it only in bedrooms and choose a commercial-grade, stain-resistant option. Budget $200–400 to replace carpet between tenants if needed.

Doors and trim

Dogs scratch doors when left alone. Protect high-risk areas:

• Install kick plates on interior doors ($15–30 each)
• Use semi-gloss or high-gloss paint on trim (easier to clean and touch up)
• Consider door scratching shields ($10–20, adhesive plastic sheets)

Yards and outdoor areas

If your rental has a yard:

• Require waste cleanup in the lease
• Consider artificial turf in small yards ($8–15/sq ft but lasts 10+ years)
• Install a dog run or designated pet area to contain wear
• Check fencing for gaps and weak spots

Odor prevention

Pet odor is the hardest issue to fix after the fact. Prevent it:

• Require tenants to have carpets professionally cleaned at move-out (or deduct from deposit)
• Use enzyme-based cleaners between tenants (not regular cleaners — enzymes break down pet proteins)
• Check for damage to subfloor if odor persists after cleaning
• Consider an ozone treatment ($100–200) for severe cases

Pet Screening Services

You don't have to evaluate pets yourself. Third-party pet screening services do it for you:

PetScreening.com:

• Tenants create a pet profile with photos, vet records, and behavior history
• Each pet gets a "FIDO score" (like a credit score for pets)
• Also handles ESA/service animal verification
• Free for landlords; tenants pay a small fee

Benefits:

• Standardized, fair process
• Documentation trail
• ESA fraud protection
• Reduces your liability

Many [property management](/blog/property-management-complete-guide) companies now require PetScreening or similar services as standard practice.

Pet Policies by Property Type

Single-family homes

Most flexible. Yards make dogs practical. Allow larger dogs and multiple pets. Charge accordingly.

Typical pet fees for SFH:

• Pet deposit: $400–500
• Pet rent: $50–75/month per dog, $25–40/month per cat

Apartments and condos

More restrictions needed due to shared walls and common areas. Noise and waste management matter more.

Typical pet fees for apartments:

• Pet deposit: $250–400
• Pet rent: $35–50/month per pet
• Weight limit: 50 lbs is common
• Maximum: 1–2 pets

Multifamily buildings

If you own the building, create consistent pet policies across all units. Designate pet relief areas, provide waste stations, and address noise in common area rules.

Consider a "pet-friendly floor" approach if you have tenants with allergies — keeps everyone happy.

Real Numbers: How Pet Policies Affect Your Bottom Line

Scenario: 4-unit apartment building, $1,200/month base rent per unit

No-pets policy:

• 2 of 4 units vacant an extra month per year (limited applicant pool): -$2,400
• Base annual income: $57,600 - $2,400 = $55,200
• Average tenant stay: 18 months → 2.7 turnovers/year at $1,500 each = -$4,000
• Net: $51,200

Pet-friendly policy:

• All 4 units rented within 2 weeks: no extra vacancy
• Base annual income: $57,600
• Pet rent: 6 pets across 4 units × $40/month = $2,880
• Pet fees: 6 pets × $200 one-time = $1,200 (year one)
• Extra cleaning/repairs: -$1,500/year
• Average tenant stay: 46 months → 1 turnover/year at $1,500 = -$1,500
• Net: $57,480 (year one), $56,280 (subsequent years)

Difference: $5,080–6,280/year more with a pet-friendly policy. That's a 10–12% income increase with minimal additional effort.

FAQs

Should I allow all pets or just cats?

Allow both dogs and cats. Dogs generate more pet rent income (higher fees), and dog owners are often the most stable long-term tenants. Use size limits and screening rather than blanket restrictions.

How much pet rent should I charge?

$25–75/month per pet is the standard range. Charge on the lower end for cats and small dogs, higher end for large dogs. Check what competitors in your area charge and match or slightly undercut to attract tenants faster.

What if a pet damages the property beyond the deposit amount?

You can pursue the tenant for damages exceeding the deposit, same as any other lease violation. Document everything with photos and receipts. Having renter's insurance with pet liability as a lease requirement gives you an additional recovery path.

Can I change my no-pets policy on an existing property?

Yes. Implement the new policy at lease renewal. Existing tenants without pets keep their current terms. New tenants and renewing tenants sign the updated pet addendum. You can start collecting pet rent immediately from new pet-owning tenants.

Do pet-friendly rentals get damaged more?

Some additional wear is normal — expect minor scratches, possible carpet staining, and occasional door damage. But with proper screening, LVP flooring, and appropriate pet deposits, the extra income from pet fees more than covers repair costs. The net effect on your finances is strongly positive.

What about pet odor in the unit?

Require professional carpet cleaning at move-out (written into the lease). Between tenants, use enzyme-based pet odor eliminators. If you've replaced carpet with LVP flooring, odor is rarely an issue since vinyl doesn't absorb smells the way carpet and carpet padding do.

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At HonestCasa, we believe pet-friendly policies are one of the easiest ways to [increase rental income](/blog/increase-rental-income-guide) while attracting better, longer-staying tenants. Structure it right, and everyone wins — landlords, tenants, and their pets.

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