Should You Allow Pets in Your Rentals?: A Guide for Landlords in the Folsom and Greater Sacramento Area

As a landlord, one of the key decisions you’ll face is whether or not to allow pets in your rental property. San Francisco Assemblyman Matt Haney has said that 70% of California renters have pets, but only 30% of available rentals accept them. That leaves a significant gap in supply and demand for pet-friendly rentals, and an opportunity for landlords to reduce vacancy and maximize the return on their investments. However, making sure these pet-friendly rentals are managed effectively and are equipped with the proper legal disclosures and pet-policies is key to mitigating the liabilities that come with pets. This article was written to help you make an informed decision regarding pet-friendly rental policies that benefits both you and your tenants.

What are the Benefits to Landlords for Allowing Pets?

Allowing pets in your rental property can have several advantages:

1. Increased Tenant Pool: Most potential tenants in the Folsom and surrounding areas are pet owners. By opening your property to them, you significantly increase your pool of applicants. This can lead to shorter vacancy periods and less time spent on the market. With the rising demand for pet-friendly housing, properties that accommodate pets tend to attract more interest.
2. Higher Rental Income: Pet-friendly properties often command higher rents. Tenants are generally willing to pay a premium for the opportunity to keep their pets, which can translate into higher income for you. This extra income can help offset the potential wear and tear caused by pets.
3. Longer Tenancies: Pet owners are typically more stable and less likely to move frequently, as finding pet-friendly housing can be challenging. This stability can result in longer tenancies, reducing turnover costs and minimizing the stress of frequently finding new tenants.
4. Positive Tenant Relationships: Allowing pets can foster goodwill between you and your tenants. Tenants who feel their needs and those of their pets are considered are likely to be more cooperative and respectful, creating a more positive rental experience for both parties.

The Downsides of Allowing Pets: What to Consider

While there are clear benefits to allowing pets, it’s essential to weigh these against the potential downsides:

1. Property Damage: One of the most significant concerns landlords have is the potential for property damage. Pets, particularly dogs and cats, can cause scratches on floors, chew on fixtures, or have accidents that stain carpets. Repairing this damage can be costly, and even well-behaved pets can unintentionally cause wear and tear over time.
2. Noise Complaints: Pets, especially dogs, can be noisy. Barking can disturb neighbors and lead to complaints, creating tension in multi-unit properties or closely-knit neighborhoods. This can affect the overall harmony of your rental property and may require intervention.
3. Allergies and Odors: Pets can introduce allergens and odors into the property. While these can be addressed with proper cleaning and maintenance, they can still be a concern, particularly when transitioning between tenants. Future tenants who are allergic to pets may be deterred from renting your property.
4. Insurance Considerations: Some insurance policies may have restrictions or higher premiums for properties that allow pets, particularly certain dog breeds. It’s crucial to review your insurance policy and ensure you have adequate coverage before allowing pets.

Crafting a Pet Policy: Protecting Your Investment

If you decide to allow pets, establishing a comprehensive pet policy is essential. This policy should clearly outline the rules and expectations for tenants with pets, protecting your property while accommodating their needs. Here’s what to include in your pet policy:

1. Types of Pets Allowed: Specify which types of pets are allowed in the property. Common pets like cats and dogs are typically allowed, but you may want to restrict certain types, such as exotic animals or large reptiles. You might also want to specify any breed or size restrictions for dogs. California does not have a standardized list of restricted breeds, but insurance companies have the rights to refuse coverage to dog breeds they deem to be aggressive. Forbes published a list of the most commonly-banned dog breeds by insurance companies, which you can use as a guide.
2. Pet Deposits and Fees: To cover potential damages, charge a refundable pet deposit. In addition, consider implementing a monthly pet rent. This additional income can help offset any extra wear and tear caused by the pets.
3. Limit on Number & Size of Pets: To manage the potential impact on your property, you may choose to limit the number of pets allowed per unit, as well as the size of the pets. Larger pets can make larger problems. By reducing the size and number of pets, you can reduce the likelihood of damage and keep the environment more manageable.
4. Required Documentation: Request documentation such as proof of vaccinations, obedience training, or a reference from a previous landlord. This can help ensure the pet is well-behaved and healthy, reducing the risk of issues arising.
5. Behavioral Expectations: Clearly outline expectations for pet behavior, such as rules regarding barking, waste disposal, and supervision. Make it clear that tenants are responsible for their pets’ actions and any resulting damages or disturbances.
6. Regular Inspections: Conduct regular property inspections to identify any issues early on. This proactive approach allows you to address potential problems before they become significant, helping maintain your property’s condition.
7. ESA Pet Screening: Emotional Support Animals are a special category of pets that provides therapeutic benefits to a person with a mental health or psychiatric disability. These pets are excluded from the typical restrictions and rules, and landlords cannot charge extra fees to owners of ESA or service animals. That said, it is best practice for landlords to utilizing pet screening services to ensure that ESAs and service animals are properly registered and qualified.

Implementing Your Pet Policy: Best Practices

Once your pet policy is in place, it’s essential to implement it effectively. Here are some best practices:

1. Screen Tenants Thoroughly: During the tenant screening process, inquire about any pets the prospective tenant has. Ensure they understand and agree to your pet policy before signing the lease. This can prevent misunderstandings and ensure compliance from the start.
2. Document Everything: Keep detailed records of any pet-related agreements, including the pet policy, deposits, fees, and any communication related to pets. This documentation can be invaluable in case of disputes or legal issues.
3. Educate Tenants: Provide tenants with resources or tips on how to maintain the property with pets. This might include information on cleaning techniques, noise reduction strategies, or local pet services. Educated tenants are more likely to take better care of your property.
4. Maintain Open Communication: Encourage tenants to communicate any pet-related concerns or issues. Open communication can help address problems early and prevent them from escalating. It also fosters a positive relationship between you and your tenants.

The Role of Property Management in Pet-Friendly Rentals

Managing a pet-friendly rental property requires careful planning and oversight. If you’re a landlord in Folsom or the Greater Sacramento area, partnering with a professional property management company like Keyrenter Folsom Property Management can make this process smoother. Here’s how we can help:

1. Professional Lease Policies: We have created a robust pet policy that protects your property while attracting responsible tenants. Our experience in the local market ensures that our policy is competitive and effective against liabilities.
2. Comprehensive Tenant & Pet Screening: Our thorough 21-point tenant screening process includes vetting tenants with pets to ensure they meet your property’s standards. We check for previous rental history, pet behavior, and any red flags that could indicate potential issues. We also utilize a pet screening service to cross reference Emotional Support Animals against a national database.
3. Property Inspections: Regular property inspections are crucial in maintaining your investment. We conduct these inspections on your behalf, providing detailed reports and addressing any concerns promptly.
4. Handling Disputes: If any pet-related issues arise, we manage them efficiently, ensuring your property and tenant relationships are protected. Our team is experienced in conflict resolution and legal compliance, minimizing the stress for you as a landlord.

Conclusion: Weighing the Decision

Allowing pets in your rental property can be a strategic decision that enhances your property’s appeal and profitability. However, it requires careful consideration and the implementation of a strong pet policy. By partnering with Keyrenter Folsom Property Management, you can confidently navigate the complexities of managing a pet-friendly rental, ensuring that your property remains in excellent condition and your tenants are satisfied.

For more information about our comprehensive property management services, contact us today.