Heroic Investing
Welcome! If this is your first time visiting Jason Hartman's website, please read this page to learn more about what we do here. You may also be interested in receiving updates from our blog via RSS or via email if you prefer. If you have any questions about first responder finance feel free to contact us anytime! Thanks!

Pet Policies Boost Income and Save Landlord Headaches

HI4-30-14v2People love their pets. And renting to people with animals creates an additional income stream for rental property investors in the form of pet deposits. But in order to avoid the many headaches that can come with pet issues in rental housing, landlords need to know the law – and know their limits.

Not every investor will want to open the doors to animal owners. Some will – but only with limits. With some exceptions, it’s a landlord’s right to have a no pets policy – unless the animal in question is a service animal. It’s legal to establish a policy for renters who bring their animal families along. And getting these things clear from the moment a renter signs your lease or rental agreement is essential for protection down the line.

Pet deposits cover damages and wear inflicted by renters’ animals, whether a dog who rips up a rug or an exotic bird that chews cabinets. Some landlords impose a single deposit upon move-in that covers all animals a renter might have; others itemize with different rates for dogs, cats and their animals. Others place a monthly surcharge on the rent.

Whatever structure you choose, it’s essential to put it in writing up front. A landlord who doesn’t have a policy may end up in trouble if a longtime renter suddenly acquires a new animal companion. It’s too late then to demand a deposit. It’s important too to establish clear restrictions on what kinds of animals you’ll allow – only dogs under a certain size, for example.

Local ordinances also affect a landlord’s decisions about pets. Some animals can’t be kept within city limits, or the city might impose a limit on the number of animals a household can have. Likewise, check your insurance. In some areas, certain kinds of animals can’t be kept for liability reasons, such as pit bull dogs or certain kinds of snakes. Look carefully at your policy with an eye to contingencies such as a renter’s animal creating a neighborhood nuisance or harming someone. If that happens, you may be faced with initiating eviction proceedings, or going to court in a lawsuit.

Careful screening of tenants should help a landlord realize income from pet deposits – but damage does occur. The renter is responsible for those kinds of things – and the pet deposit is intended to cover them.
But expenses can rise, sometimes far exceeding the deposit, from unintended consequences such as a lost mouse or two taking up residence in walls or a rabbit’s habit of chewing electrical cords setting off a fire.

You can’t anticipate everything, but looking ahead to potential problems can help to protect you and your investment. And renting to responsible pet owners can open new doors for building wealth from income property, as Jason Hartman advises. (Top image:Flickr/Elsieesq)

Read more from Heroic Investing:

New Technology Protects Bitcoin Privacy

Can Inflation Be Too Low?

The Heroic Investing Team

Heroic Investing logo

 

 

 

Tags: , , , , , ,