Should You Allow Pets in Your Rental Property?

Megan Bullock/Apartments.com • May 2, 2021

It’s no secret that most pet owners treat their pets like family, so when it comes time to find a new home, these renters will be looking for pet-friendly rentals. This begs the question, should you allow pets in your rental property? If this question is weighing on your mind, you’re in the right place. It’s true that allowing pets in your rental gives you access to a larger pool of interested renters, but this decision also comes with a few risks. Before you decide where your rental fits in the mix, let’s weigh the benefits and risks of having a pet-friendly rental. 

Benefits of Allowing Pets in You Rental Property

If you decide to list your rental online as “pet friendly,” you’ll enjoy several benefits, including the opportunity to:

Make more in rental fees

By allowing pets in your rental property, you are essentially adding another tenant (or a few, if you allow). Although this furry tenant won’t be responsible for splitting the rent, their presence will require some additional payments. Pet fees, pet deposits, and pet rent are a few of the ways you can make more in rental fees by allowing pets.

You will collect a non-refundable pet fee from your pet-owning tenant before or on move-in day. You can also collect a pet deposit at the same time in addition to the pet fee. The only difference is the pet deposit is refundable and will be returned to the tenant in full if there are no pet-related damages to the unit, including soiled carpet, chewed blinds, or scratches on the floor, walls, and moldings. Pet rent is a fee that renters will pay once a month in addition to their base rent.

Depending on your state laws, you can charge one of these rental fees, all three, or a mix. These rental fees will automatically boost your rental income, as well as provide a bit of cushion for potential damages. Be sure to check what competitors in your market are charging for pet fees so that you aren’t under or overselling your rental.

Increase your lease renewal rates

Not every rental allows pets, so if you choose to allow them, your tenants may be incentivized to renew their lease. Many renters will feel more comfortable in a pet-friendly rental, even if they haven’t committed to a furry friend of their own just yet. It gives them the option to do so in the future. If your rental is not pet friendly, and your tenant decides they want a pet, they will have to wait until their lease is up or potentially break their lease early, leaving you to find a new tenant once they’re gone. Avoid these potential vacancies by giving pet owners what they want — a good home for their fur family.

Expand your list of potential tenants

As discussed, not all rentals allow pets, which automatically limits those landlords to only renters without pets. If you choose not to allow pets in your rental, you risk losing some potentially great tenants simply because they are pet owners. Your list of potential tenants will expand immediately if you list your rental as pet friendly. As more and more renters become pet parents, your pool of potential tenants will continue to grow.

Risks of Allowing Pets in Your Rental Property

Allowing pets in your rental is a great way to show tenants your flexibility, but it’s important to consider the risks of doing so before you proceed.

Increased chances of property damage

It’s common for pet damage to occur in pet-friendly rentals, even if it only involves minor issues. Soiled carpet, scratched floors and walls, and chewed blinds are just a few examples of common pet damage. Accidents happen, especially with younger pets, but if your tenant isn’t a responsible pet owner, small issues may become bigger problems over time. If a pet is continuously left home alone or not properly taken care of, damage will likely occur.

Potential noise complaints

Pets left alone for several hours at a time, even during normal work or school hours, can be a problem. Incessant barking, howling, or meowing can lead to frustrated neighbors and subsequent noise complaints. In some situations, pet owners may be trying their best to deal with a pet’s separation anxiety, while others may be unaware of the problem. Noise complaints are never ideal, especially when it’s about lonely, bored, or anxious pets. Handling pet noise complaints can prove to be difficult because there is not always a solution to the problem. Pets’ behavior may improve over time, but that’s not always the case.

Abandoned pets

Even worse than a howling pet left home alone is an abandoned pet. By allowing pets in your rental, you run the risk of having a tenant who not only abandons their lease and your unit, but their pet as well. If the pet is left alone for a lengthy period of time, there could be severe damage to your property. Dealing with an abandoned pet and potential damage to your property can be upsetting for both you and the pet. If this happens in your rental and you cannot get in touch with your tenant, call your local animal rescue. This will at least allow the pet to have a second chance for a good home.

Additional Considerations for Allowing Pets in Your Rental

Although benefits and risks are important to think about, there are other pressing issues to consider as well before making your final decision.

Does your insurance company cover all pet breeds?

Not every landlord will have an insurance policy that covers all pets. In fact, many insurance companies have restrictions on what animals and breeds they allow in the policy. For instance, pit bulls and rottweilers are two common dog breeds that are excluded. Before you sign a lease with a pet owner, be sure your policy covers their pet.

How to legally handle service and emotional support animals

Tenants who have service animals or emotional support animals are protected by the American Disabilities Act (ADA). Because of this, landlords are required to allow these animals in their rental whether their unit is pet friendly or not. If your rental is pet friendly, be aware that tenants with a service or emotional support animal are not legally required to pay pet fees, pet deposits, or pet rent. Before your tenant (or their pet) moves in, they are legally obligated under the ADA and Fair Housing Laws to provide you with proper documentation that details their need for the animal.

How to screen tenants with pets

When screening a pet-owning potential tenant, the process will be very similar to screening a tenant without pets. Your tenant screening should include a background and credit check (conveniently provided by TransUnion® if your unit is listed on Apartments.com), as well as professional and landlord references, proof of income, etc. The only additional requirements for pet owners would be to answer a list of questions, such as:

  • How many pets do you have?
  • What type of pet(s) do you have?
  • What breed?
  • How much does the pet weigh?
  • Is your pet up to date on shots (specifically rabies)?

You also have the option to set up a pet interview with the potential tenant and their pup. By meeting their pet before move-in day, you can make sure they’re friendly and well behaved.

How to make your rental pet friendly

Allowing pets in your rental is the first step towards growing your pool of potential tenants, but a great way to retain your pet-owning tenants is to install a few pet-friendly amenities and features. Pet-friendly flooring (avoid carpet), a closed-in patio or a fenced-in yard, or a pet door that opens to a fenced-in outdoor space are great ways to make your rental more pet friendly.

The Choice Is Yours

Every property owner must make their own decision when it comes to allowing pets in their rental property. Keep in mind that although there are serious risks, such as property damage, noise complaints, and abandoned pets, more and more renters are becoming pet owners. If you don’t allow pets, your pool of renters will continue to shrink. A great compromise is to create a pet agreement that outlines your requirements, including:

  • Pet fees, pet deposits, and pet rent
  • Number of pets allowed per unit
  • Type, breed, and size of pet

In the agreement, you can also detail your expectations. For example, explain that tenants are required to pick up after pets outdoors, specify cleaning instructions to avoid any leftover pet dander, smell, or damage after your tenant moves out, and reiterate community quiet hours.

Although you are not required to allow pets in your rental property, you have a much better chance of finding a potentially great, long-term tenant in a timely manner if you are flexible with your rental policies and rent to tenants with pets. 


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The Five-Year Rule for Home Price Perspective

By KCM • June 25, 2025
The Five-Year Rule for Home Price Perspective Headlines are saying home prices are starting to dip in some markets. And if you’re beginning to second guess your plans based on what you’re hearing in the media, here’s what you need to know. It's true that a few metros are seeing slight price drops. But don't let that overshadow this simple truth. Home values almost always go up over time (see graph below): While everyone remembers what happened around the housing crash of 2008, that was the exception – not the rule. It hadn’t happened before, and hasn’t since. There were many market dynamics that were drastically different back then, too. From relaxed lending standards to a lack of homeowner equity, and even a large oversupply of homes, it was very different from where the national housing market is today. So, every headline about prices slowing down, normalizing, or even dipping doesn’t need to trigger fear that another big crash is coming. Here’s something that explains why short-term dips usually aren’t a long-term deal-breaker. What’s the Five-Year Rule? In real estate, you might hear talk about the five-year rule. The idea is that if you plan to own your home for at least five years, short-term dips in prices usually don’t hurt you much. That’s because home values almost always go up in the long run. Even if prices drop a bit for a year or two, they tend to bounce back (and then some) over time. Take it from Lance Lambert, Co-Founder of ResiClub: “. . . there’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time.” What’s Happening in Today’s Market? Here’s something else to put your mind at ease. Right now, most housing markets are still seeing home prices rise – just not as fast as they were a few years ago. But in the major metros where prices are starting to cool off a little (the red bars in the graph below), the average drop is only about -2.9% since April 2024. That’s not a major decline like we saw back in 2008. And when you look at the graph below, it’s clear that prices in most of those markets are up significantly compared to where they were five years ago (the blue bars). So, those homeowners are still ahead if they’ve been in their house for a few years or more (see graph below): The Big Picture Over the past 5 years, home prices have risen a staggering 55% , according to the Federal Housing Finance Agency (FHFA). So, a small short-term dip isn’t a significant loss. Even if your city is one where they’re down 2% or so, you’re still up far more than that. And if you break those 5-year gains down even further, using data from the FHFA, you’ll see home values are up in every single state over the last five years (see map below): That’s why it’s important not to stress too much about what’s happening this month, or even this year. If you’re in it for the long haul (and most homeowners are) your home is likely to grow in value over time. Bottom Line Yes, prices can shift in the short term. But history shows that home values almost always go up – especially if you live there for at least five years. So, whether you’re thinking of buying or selling, remember the five-year rule, and take comfort in the long view. When you think about where you want to be in five years, how does owning a home fit into that picture? Let’s connect to get you there.

Newly Built Homes May Be Less Expensive Than You Think

By KCM • June 25, 2025
Newly Built Homes May Be Less Expensive Than You Think Do you think a brand-new home means a bigger price tag? Think again. Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in): You read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed they’d be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s housing market. Why Are Newly Built Homes Less Expensive Right Now? 1. Builders Are Building Smaller Homes Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below): And as size goes down, the price often does too. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them. 2. Builders Are Offering Price Cuts and Incentives In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5% . That’s because they want to be sure they’re selling the inventory they have before they build more. On top of that, 61% of builders also offered sales incentives – like helping with closing costs or buying down your mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market. Your Next Step? Ask Your Agent What's Available Near You If you're trying to buy a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own. Plus, buying a newly built home often means there are different steps in the process than if you purchase a home that’s been lived in before. That’s why it’s so important to have your own agent who can explain the fine print. You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first. Bottom Line You could get a home that’s brand new, with modern features, at a price that’s even lower than some older homes. Let’s talk about what you’re looking for and see if a newly built home is the right fit for you. If buying a home is on your to-do list, what would stop you from exploring newly built options?

Why Would I Move with a 3% Mortgage Rate?

By KCM • June 18, 2025
Why Would I Move with a 3% Mortgage Rate? If you have a 3% mortgage rate, you’re probably pretty hesitant to let that go. And even if you’ve toyed with the idea of moving, this nagging thought may be holding you back: “why would I give that up?” But when you ask that question, you may be putting your needs on the back burner without realizing it. Most people don’t move because of their mortgage rate. They move because they want or need to. So, let’s flip the script and ask this instead: What are the chances you’ll still be in your current house 5 years from now? Think about your life for a moment. Picture what the next few years will hold. Are you planning on growing your family? Do you have adult children about to move out? Is retirement on the horizon? Are you already bursting at the seams? If nothing’s going to change, and you love where you are, staying put might make perfect sense. But if there’s even a slight chance a move is coming, even if it’s not immediate, it’s worth thinking about your timeline. Because even a year or two can make a big difference in what your next home might cost you. What the Experts Say About Home Prices over the Next 5 Years Each quarter, Fannie Mae asks more than 100 housing market experts to weigh in on where they project home prices are headed. And the consensus is clear. Home prices are expected to rise through at least 2029 (see graph below): While those projections aren’t calling for big increases each year, it's still an increase. And sure, some markets may see flatter prices or slower growth, or even slight dips in the short term. But look further out. In the long run, prices almost always rise. And over the next 5 years, the anticipated increase – however slight – will add up fast. Here’s an example. Let's say you'll be looking to buy a roughly $400,000 house when you move. If you wait and move 5 years from now, based on these expert projections, it could cost nearly $80,000 more than it would now (see graph below): That means the longer you wait, the more your future home will cost you. If you know a move is likely in your future, it may make sense to really think about your timeline. You certainly don't have to move now. But financially, it may still be worth having a conversation about your options before prices inch higher. Because while rates are expected to come down, it’s not by much. And if you’re holding out in hopes we’ll see the return of 3% rates, experts agree it’s just not in the cards (see graph below): So, the question really isn’t: “why would I move?” It’s: “when should I?” – because when you see the real numbers, waiting may not be the savings strategy you thought it was. And that’s the best conversation you can have with your trusted agent right now. Bottom Line Keeping that low mortgage rate is smart – until it starts holding you back. If a move is likely on the horizon for you, even if it’s a few years down the line, it’s worth thinking through the numbers now, so you can plan ahead. What other price point do you want to see these numbers for? Let’s have that conversation, so I can show you how the math adds up. That way, you can make an informed decision about your timeline.
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