The Pros and Cons of Allowing Pets in Your Rental Property: A Landlord's Complete Guide

By PropsManager Team · Property Management · Apr 22, 2025

I'll be honest with you — I spent the first three years of my landlording career with a blanket "no pets" policy. Zero exceptions. Then I ran the numbers and realized I was leaving roughly $4,800 a year on the table across my units. That's when everything changed.

The pets-in-rentals question isn't a simple yes or no. It's a business decision that, when handled right, can boost your bottom line significantly. When handled wrong, you're staring at $3,000 in hardwood floor refinishing costs and a chewed-up door frame. I've experienced both sides.

Let's walk through the real pros, the real cons, and the strategies that separate landlords who profit from pet-friendly policies from those who get burned.

Why the Pet Question Matters More Than Ever

Here's a number that should get your attention: 72% of renters in the United States own at least one pet, according to the American Pet Products Association's 2024 survey. That's up from about 67% just five years ago. The pet ownership trend isn't slowing down — if anything, it accelerated after 2020 when adoption rates surged.

Meanwhile, only about 50% of rental listings allow pets. That mismatch creates a massive opportunity. Pet-owning renters are actively competing for a limited pool of housing, which means they're willing to pay more, stay longer, and put up with stricter lease terms just to keep their companion.

If you manage more than a couple of units, ignoring pet owners means you're voluntarily shrinking your applicant pool by half or more. That's a strategic choice, and it better be backed by solid reasoning.

The Pros of Allowing Pets in Your Rental

1. A Dramatically Larger Tenant Pool

This one's straightforward math. If you list a two-bedroom apartment at $1,400/month with a no-pets policy, you're filtering out the majority of prospective renters before they even call. I've seen pet-friendly listings pull in three to four times the inquiries compared to identical no-pet units in the same building.

More applicants means more options. More options means you can be pickier about credit scores, income verification, and rental history. You're not settling for the first warm body who qualifies — you're choosing the best tenant from a deep bench.

2. Pet Rent Is Essentially Free Cash Flow

Most markets now accept pet rent as standard. We're talking $25 to $75 per month per pet, depending on your area and the type of animal. That doesn't sound like much until you annualize it.

Quick math on a single unit:

• Pet rent: $50/month
• Annual pet income: $600
• Over a 3-year tenancy: $1,800

Now multiply that across multiple units. A landlord with 10 pet-friendly units collecting $50/month in pet rent is pulling in an extra $6,000 annually. That covers a decent chunk of your insurance premiums or funds a capital improvement project.

Some landlords also charge a one-time, non-refundable pet fee of $200 to $500 on top of pet rent. Check your state laws — not every jurisdiction allows non-refundable pet fees, but where it's legal, it's another revenue stream.

3. Longer Tenancies and Lower Turnover

This is the big one that most landlords overlook. Turnover is the silent killer of rental profitability. Between vacancy loss, cleaning, painting, advertising, and showing the unit, a single turnover can cost you $2,500 to $5,000 easily.

Pet owners stay longer. Period. The data from multiple property management surveys consistently shows that pet-owning tenants stay an average of 18 to 24 months longer than non-pet-owning tenants. Why? Because finding another pet-friendly rental is a pain. They've got a good thing going, and they know it.

A tenant who stays four years instead of two saves you one full turnover cycle. At $3,000 per turnover, that single avoided vacancy more than offsets the risk of pet-related damage.

4. Responsible Pet Owners Tend to Be Responsible Tenants

I know this sounds like a generalization, but hear me out. Someone who takes the time to properly care for an animal — vet visits, training, regular feeding schedules — tends to bring that same conscientiousness to their living situation. They keep the unit cleaner, report maintenance issues promptly, and follow lease terms.

Obviously this isn't universal. You'll find irresponsible pet owners just like you'll find irresponsible tenants without pets. That's what screening is for. But the correlation between responsible pet ownership and responsible tenancy is real enough that I've learned to pay attention to it.

5. Competitive Advantage in Your Market

In tight rental markets, a pet-friendly policy can be a genuine differentiator. If comparable units in your area are all "no pets," you've just cornered a huge segment of the demand. Your listing stands out. You fill vacancies faster. You might even command a slight premium on base rent beyond just the pet fee.

The Cons of Allowing Pets in Your Rental

Let's not sugarcoat this. There are real risks, and pretending otherwise would be irresponsible.

1. Property Damage Is a Real Possibility

Scratched hardwood floors. Urine-soaked carpet padding. Chewed baseboards and door frames. Claw marks on window sills. I've seen all of it and worse.

Here's what the damage typically costs:

The worst case I ever dealt with involved a tenant whose two cats had been urinating on the same carpet spot for over a year. The smell had soaked through the carpet, through the padding, and into the subfloor. We had to rip out the carpet, replace the padding, seal the subfloor with an enzymatic treatment, and then recarpet. Total bill: $2,200 for one bedroom.

2. Noise Complaints From Neighbors

A barking dog in a multi-family building will generate complaints faster than almost anything else. Neighbors get frustrated, they call you, they call the city, and suddenly you're mediating a dispute that's eating up your evenings.

Dogs with separation anxiety are the worst offenders. They bark and howl for hours while the owner is at work, and the owner genuinely has no idea it's happening. By the time you find out, three neighbors are ready to break their leases.

3. Liability Concerns

If a tenant's dog bites someone on your property — another tenant, a delivery driver, a guest — you could find yourself named in a lawsuit. While your landlord's insurance likely covers some liability, the legal headaches and potential premium increases aren't trivial.

Certain breeds carry higher bite-risk statistics, which is why many landlords maintain breed restrictions. Your insurance company may even require them. Always verify your policy's specific exclusions.

4. Allergen Issues Between Tenants

Pet dander is stubborn. Even with professional cleaning between tenants, dander can linger in HVAC ducts, carpet fibers, and upholstery. If your next tenant has severe allergies, you could face complaints or even habitability claims in extreme cases.

This is particularly relevant in multi-family properties where shared hallways and ventilation systems can spread allergens between units.

5. Wear and Tear Accelerates

Beyond obvious damage, pets simply accelerate normal wear. Lawns develop brown spots. Hallway carpets wear faster. Paint gets scuffed at pet height. Screens get pushed out. None of these are catastrophic individually, but they add up over time and can shorten the interval between major refreshes.

How to Allow Pets Profitably: Strategies That Actually Work

If you've decided the pros outweigh the cons — and for most landlords, they do — here's how to protect yourself.

Screen the Pet, Not Just the Tenant

Require a pet application as part of your screening process. This should include:

• Pet type, breed, weight, and age — A 12-year-old Labrador is a very different risk profile than a 6-month-old German Shepherd puppy.
• Vaccination records — Non-negotiable. Rabies, distemper, and bordetella at minimum for dogs.
• Veterinary reference — A pet that sees the vet regularly is a pet that's cared for.
• Photo of the pet — You want to know what you're approving.
• Training history or behavioral notes — Any bite history, property destruction, or noise complaints at previous addresses.

Some landlords use third-party pet screening services like PetScreening.com, which assigns a "FIDO score" — essentially a credit score for pets. It's not perfect, but it adds a layer of due diligence.

Write a Bulletproof Pet Addendum

Your standard lease isn't enough. You need a separate pet addendum that covers:

• Approved pets by name, breed, and description — No swapping in a different animal later.
• Maximum number of pets — Two is the most common limit.
• Weight limits — Many landlords cap at 40 to 60 lbs per pet.
• Breed restrictions — List them explicitly.
• Pet rent amount and pet deposit/fee terms
• Owner responsibilities — Waste cleanup, leash requirements in common areas, noise control.
• Damage liability — Clear language that pet damage beyond normal wear and tear will be deducted from the deposit, with the tenant liable for costs exceeding the deposit.
• Violation consequences — Including potential lease termination for repeated violations.

Using property management software like PropsManager makes it easy to generate and attach pet addendums to digital leases, track pet rent payments separately, and document any pet-related issues with timestamped notes and photos.

Charge the Right Amounts

Here's a framework based on what I've seen work across different markets:

Important: Several states and cities regulate what you can charge for pets. California, for example, caps security deposits at one month's rent for unfurnished units (as of 2024 legislation), and this includes any pet deposit. Know your local laws before setting fees.

Conduct Regular Inspections

Don't wait until move-out to discover pet damage. Schedule routine property inspections every six months — quarterly if the tenant has a large dog. Give proper notice (typically 24 to 48 hours, depending on your state), and document the condition of floors, walls, and fixtures.

Early detection lets you address problems before they become expensive disasters. A scratch on a hardwood floor caught early can be buffed and sealed for $50. Left for a year, it becomes a full-room refinishing job at $2,000+.

Require Renter's Insurance With Pet Liability

Make renter's insurance with a minimum liability coverage of $100,000 a lease requirement for tenants with pets. This shifts the bite-risk liability away from you. Most renter's insurance policies cost tenants $15 to $30/month, so it's not an unreasonable ask, and it protects everyone involved.

Pet Policy Checklist for Landlords

Use this checklist before implementing your pet policy:

• Research local and state laws on pet deposits, fees, and breed restrictions
• Update your lease with a comprehensive pet addendum
• Establish pet rent and fee amounts for your market
• Create a pet application and screening process
• Verify your landlord insurance covers pet-related incidents
• Require renter's insurance with pet liability coverage
• Set a schedule for regular property inspections
• Establish clear rules for common areas (leash requirements, waste cleanup)
• Document the property's condition before pet move-in with photos/video
• Know your obligations regarding service animals and emotional support animals

A Quick Note on Service Animals and ESAs

This trips up landlords constantly, so let me be clear: service animals and emotional support animals are not pets under the law. You cannot charge pet rent, pet deposits, or pet fees for them. You cannot apply breed or weight restrictions. You cannot deny them, even if you have a no-pets policy.

Under the Fair Housing Act, reasonable accommodations must be made for tenants with disabilities who require assistance animals. The only exceptions are if the specific animal poses a direct threat to safety or would cause substantial physical damage — and you need documented evidence, not just a hunch.

Violating these rules can result in HUD complaints, lawsuits, and fines ranging from $16,000 to over $100,000 for repeat violations. Get familiar with the rules or consult a real estate attorney. This isn't optional.

Real Numbers: A Case Study

Let me show you what allowing pets actually looks like financially over three years for a single unit renting at $1,500/month.

Scenario A: No Pets Allowed

• Monthly rent: $1,500
• Average tenancy: 18 months (two turnovers in 3 years)
• Turnover cost per occurrence: $3,000 (vacancy + prep)
• 3-year gross rent: $54,000
• 3-year turnover costs: -$6,000
• Net rent collected: $48,000

Scenario B: Pets Allowed

• Monthly rent: $1,500 + $50 pet rent = $1,550
• Average tenancy: 30 months (one turnover in 3 years)
• Turnover cost per occurrence: $3,500 (slightly higher due to pet cleaning)
• One-time pet fee: $300
• 3-year gross rent: $55,800 + $300 = $56,100
• 3-year turnover costs: -$3,500
• Net rent collected: $52,600

Difference: $4,600 more with pets over three years. And that's a conservative estimate with just one pet and modest pet rent.

The math gets even better with multiple units. Across a 10-unit portfolio, that's potentially $46,000 in additional revenue over three years. That's not pocket change — that's a down payment on your next investment property.

Managing Pet Policies With Technology

Tracking pet rent, documenting inspections, and managing pet addendums manually is a headache that grows with every unit you add. This is where PropsManager earns its keep. You can set up automated pet rent charges, store pet screening documentation, attach pet addendums to digital leases, and log inspection reports with photos — all in one place.

If you're managing more than a handful of units, doing this with spreadsheets and filing cabinets is asking for trouble. Check out our pricing plans to see how affordable it is to get organized.

Explore More PropsManager Resources

Looking for the right property management software? Check out our in-depth guides:

• Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
• Software for Small Landlords — Built for landlords managing 1–50 units without the enterprise price tag.
• AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
• Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

Can I charge a pet deposit and pet rent at the same time?

In most states, yes. A pet deposit is a one-time refundable or non-refundable charge, while pet rent is a recurring monthly fee. However, some states cap total security deposits or prohibit non-refundable fees entirely. California, for example, limits total deposits to one month's rent for unfurnished units. Always check your local regulations before structuring fees.

What breeds should I restrict in my pet policy?

Common breed restrictions include Pit Bulls, Rottweilers, German Shepherds, Doberman Pinschers, and wolf hybrids. However, base your restrictions on your insurance company's requirements first — many insurers maintain specific excluded breed lists. If your policy excludes a breed and an incident occurs, your claim could be denied entirely. Some jurisdictions also prohibit breed-specific legislation, so check local laws.

How do I handle a tenant who sneaks in an unauthorized pet?

Address it immediately with a written lease violation notice. Your pet addendum should specify that unauthorized pets constitute a lease violation. Depending on your lease terms and local law, you may charge retroactive pet fees, require immediate removal of the animal, or begin eviction proceedings for repeated violations. Document everything — photos of the animal, dates discovered, and all communications.

Should I allow exotic pets like reptiles or birds?

Reptiles and fish are generally low-risk — they don't cause floor damage, noise complaints, or allergies. Birds can be noisy but rarely cause physical damage. The key is being specific in your pet policy. Rather than a blanket "pets allowed," list approved animal types. Many landlords allow cats, dogs under a weight limit, fish, and small caged animals, while excluding snakes, ferrets, and any animal prohibited by local ordinance.

Can I change my pet policy for existing tenants mid-lease?

No. You cannot change lease terms — including pet policy — during an active lease without the tenant's written consent. You can, however, implement a new pet policy at lease renewal time. If you currently allow pets and want to stop, existing tenants with approved pets are typically grandfathered in for the duration of their tenancy. Always consult a local attorney before making policy changes that affect current residents.

Take the Guesswork Out of Pet Management

Allowing pets doesn't have to be a gamble. With the right screening, the right lease language, and the right tools, it's one of the most straightforward ways to increase rental income and reduce turnover.

If you're ready to streamline your pet policy alongside the rest of your property management workflow, request a demo of PropsManager and see how landlords across the country are managing pet-friendly portfolios without the headaches.

You might also find these guides helpful:

• How to Handle Security Deposit Disputes
• Understanding Wear and Tear vs. Property Damage
• How to Conduct a Move-Out Inspection Properly