Tuesday, May 7, 2013

Pet Friendly Rental or Not?


Many landlords allow pets, as pet owners are willing to pay an extra monthly pet fee on top of the rent. In addition, turnover is typically lower (even when rents are raised) because pet owners have fewer options.

However, allowing pets on your property can pose risks, such as additional property damage or issues with other tenants. If you allow pets, require your tenants, even those without pets, to sign a “pet agreement” that has been designed to minimize your risks.

Your pet agreement should advise the tenant that other tenants may have pets and therefore their presence and normal, reasonable behavior shall be tolerated. Your pet agreement should then define the type and quantity of pets allowed, pet related rules and pet fees.

Also, check you’re your insurance agent and make sure your landlord insurance covers liability claims associated with a tenant’s pet.

Here are typical items that you may want to cover in your pet policy:
1.     Pets are limited to standard domestic animals suited for urban living, such as dogs, cats, rodents, fish and birds. You should specify the exact animals you will allow and how many of each. For example, you may only have 1 dog or cat; or a maximum of 2 hamsters; or no more than 2 birds.
2.     You can ban dogs on the dangerous breeds list. This list will vary so check with your insurance company. Dangerous breeds generally include Pit Bulls, Rottweilers, Doberman Pinschers, Chows, Akitas, Alaskan Malamutes, German Shepherds, Siberian Huskies, St. Bernard’s, Wolf Hybrids, and a mix of any of the above.
3.     You can set a weight limit, for example, dogs must be no more than 20 pounds.
4.     All pets will have the required shots, licenses and tags, including name tags. Check with your state to determine the vaccines and licenses required locally.
5.     All dogs will be on a leash at all times outside of the apartment.
6.     Other animals, such as birds and hamsters, will be appropriately caged.
7.     The tenant is responsible for cleaning up any “accidents” their pet has left inside the apartment, inside the building or outdoors.
8.     Tenants cannot take in animals from friends or family. Make it clear you have to approve any animal that will live in the apartment.
9.     Tenant shall be liable for any damage or injury caused by the pet(s). Tenant agrees to indemnify, hold harmless, and defend against liability, judgments, expense, or claims by third parties for injury to a person or damage to property caused by tenant’s pet(s).
10.  If any part of the pet agreement is violated, or the pet becomes a nuisance or a hazard to others, property management can require the pet be removed or can terminate tenancy. If only the pet is removed, this will have no effect on the validity of the signed lease agreement, which the tenant will still have to adhere to.
11.  State that you have the right to make changes to the pet agreement as long as you give proper notice, at least 30 days. This protects you in case, for example, you decide not to allow dogs in the future.
12.  The property owner should ask for and be provided with the names of veterinarians and substitute guardians in the event of an emergency.
By defining your pet policy in writing from the very beginning, your tenants will understand what is expected of them as pet owners, as well as the consequences if they do not follow the rules.
*You should consult legal counsel to determine the appropriate wording for your pet policy.