Nowadays, it seems like the majority of tenants tend to come with an animal of some sort. Whether it’s a dog or a cat or a pet fish, it’s important to have a policy in place. Over 50% of all tenants have pets, so having a “no pet” policy can cut your potential tenants in half, increase vacancy, and seriously cut into your cashflow.
In general, there are certains types of animals that tend to do less damage than others, such as small to medium sized animals. On the other hand, contrary to what most people may think, cats can cause more damage and repair cost than dogs, and can affect future tenants who may have cat allergies.
You may also want to consider the property itself. Does it have durable flooring? How expensive would the repair be if it was destroyed? For example, if you just put in brand new carpet, you may want to consider these things.
Make sure you have a pet section in your leasing contracts that specifically outlines what the tenant is responsible for if damage takes place.
PET DEPOSITS
We actually recommend NOT charging a pet deposit. Pet deposits can only be used for pet-related damages. Whereas, if you increase the overall security deposit, you can use it to cover all damages, including pet related. It’s better to classify the deposits this way so you can have enough funds to legally cover potential damages. Another option, especially in cities with strict security deposit laws (ie. Chicago with its Residential Landlord-Tenant Ordinance...aka RLTO), is a pet fee or pet rent. A pet fee is a one time non-refundable fee that gets passed through to the owner as income. Pet rent is a recurring fee charged along with the monthly rent that can help offset any repairs needed when the tenant moves out. This is also passed through as income so there’s no need to return it if there’s no pet related damage when the tenant moves out.
BREED RESTRICTIONS
Some insurance companies will require that you have breed restrictions if you are renting your property. It’s important to note also, that even if an insurance company does not have a breed restriction, certain buildings, neighborhoods, HOAs, and communities will still have breed restrictions, so it’s important to remain compliant to those policies. The only time a breed restriction is not applicable is when there is a legitimate service animal involved. For details specific to your rental dwelling policy, we recommend reaching out to your insurance agent.
SERVICE ANIMALS
There is a legal difference between “pets” and service animals. “An assistance animal is an animal that works, provides assistance, or performs tasks for the benefit of a person with a disability, or provides emotional support that alleviates one or more identified symptoms or effects of a person’s disability.” (ISBA.org) Service animals go through a special certification program that requires classes. The service animals are trained to perform certain tasks at certain times to assist their owners. Breed restrictions no longer apply when it’s a service animal. All animals can be considered for a service or emotional support animal.
When screening, placing and maintaining a tenant, service animals must be accommodated as long as they fit the required criteria. This means if you’ve been renting the property for any period of time, whether a week or 4 months, the tenant can request service animal status of their pet. There are a few questions we use as criteria to see if the pet truly qualifies as a “service animal”, of course we always recommend double checking with a lawyer if necessary.
Is there a disability? Whether it’s mental, emotional or physical, there must be a legitimate type of disability.
Does the request offset the disability? For example, a seeing eye dog to offset a visually impaired person.
Is the request reasonable? This where you may need to double check with a lawyer or a PM company to clarify.
You cannot charge more for a service animal whether it’s a pet deposit or increasing the price, service animals are exempt via HUD regulations. HUD is responsible for setting these guidelines, so make sure you are updated on their current policy. In fact, you can find yourself in major legal trouble if you do charge fees for Service Animals or deny a tenant based on having a Service Animal.
If you’re concerned or have questions about qualifying a service animal, feel free to give us a call. You can also call the Illinois State Bar Association for specific counsel in the Chicago Area.
