Pet Deposits vs. Pet Fees: What’s the Difference and How to Prepare

As a property management company serving the community of Los Angeles, EGL Properties understands that many tenants are pet owners who seek accommodation for their furry companions. For property owners, renting to tenants with pets can be a beneficial arrangement, but it also comes with its considerations, including pet deposits and pet fees. In this comprehensive guide, we’ll delve into the key differences between pet deposits and pet fees, and provide essential tips on how to prepare for renting to tenants with pets.

Understanding Pet Deposits

A pet deposit is a refundable amount of money collected by property owners to cover any potential damages caused by the tenant’s pet during their lease term. Here’s what you need to know about pet deposits:

1. Refundable: Unlike pet fees, pet deposits are typically refundable, meaning that if there are no damages beyond normal wear and tear at the end of the lease term, the tenant is entitled to receive their pet deposit back.
2. Purpose: The primary purpose of a pet deposit is to provide property owners with financial protection in case the tenant’s pet causes damage to the rental property. This can include scratches on floors, chewed-up furniture, or other types of damage.
3. Amount: The amount of a pet deposit can vary depending on the property owner’s discretion and local regulations. In Los Angeles, pet deposits are often equivalent to one month’s rent or a percentage of the rent amount.
4. Documentation: It’s essential for property owners to document the condition of the rental property before the tenant moves in, including any existing damage or wear and tear. This documentation can help resolve disputes over pet-related damages at the end of the lease term.

Understanding Pet Fees

In contrast to pet deposits, pet fees are non-refundable charges collected by property owners or property managers to cover the costs associated with allowing pets on the property. Here’s what you need to know about pet fees:

1. Non-Refundable: Unlike pet deposits, pet fees are non-refundable, meaning that tenants are not entitled to receive the fee back at the end of the lease term, regardless of whether there are damages caused by their pet.
2. Purpose: Pet fees are often used to cover expenses such as additional cleaning, maintenance, or repairs that may be necessary due to the presence of pets on the property. They help offset the potential risks and costs associated with renting to tenants with pets.
3. Amount: The amount of a pet fee can vary depending on factors such as the size and type of pet, the rental property’s location, and the property owner’s policies. In Los Angeles, pet fees typically range from $100 to $500 or more per pet.
4. Transparency: It’s important for property owners to be transparent about pet fees and clearly communicate them to tenants before they sign the lease agreement. This helps avoid misunderstandings or disputes later on.

How to Prepare for Renting to Tenants with Pets

Now that we’ve explored the differences between pet deposits and pet fees, let’s discuss some essential tips for property owners to prepare for renting to tenants with pets:

1. Establish Clear Policies: Before renting to tenants with pets, it’s crucial to establish clear pet policies that outline the rules and expectations regarding pets on the property. This includes specifying whether pet deposits, pet fees, or both will be required, as well as any restrictions on the type, size, or number of pets allowed.
2. Screen Tenants Thoroughly: When screening potential tenants with pets, be sure to ask for information about their pets, including their breed, size, age, and behavior. Consider conducting pet interviews or requesting references from previous landlords to assess the pet’s suitability for your rental property.
3. Include Pet Addendums in Lease Agreements: Be sure to include pet addendums in your lease agreements that detail the pet-related terms and conditions, including any required pet deposits or pet fees, as well as any additional rules or restrictions regarding pets on the property.
4. Educate Tenants About Pet Responsibilities: Before tenants move in with their pets, take the time to educate them about their responsibilities as pet owners, including keeping their pets under control, cleaning up after them, and respecting the rights of other residents.
5. Perform Regular Inspections: Schedule regular inspections of the rental property to assess the condition and cleanliness of the unit, as well as any potential pet-related damages. Address any issues promptly and communicate with tenants about their responsibilities regarding pet-related maintenance and care.

By understanding the differences between pet deposits and pet fees and following these essential tips, property owners can effectively prepare for renting to tenants with pets and create a positive rental experience for both pet owners and non-pet owners alike.

Renting to tenants with pets can be a rewarding experience for property owners, but it requires careful consideration and preparation. By understanding the differences between pet deposits and pet fees, establishing clear pet policies, screening tenants thoroughly, including pet addendums in lease agreements, educating tenants about pet responsibilities, and performing regular inspections, property owners can effectively navigate the challenges and reap the benefits of renting to pet owners. At EGL Properties, we specialize in property management services for property owners in the Los Angeles area. Contact us today to learn more about our comprehensive property management solutions.