Pet rent and pet deposits

It’s safe to say that after the pandemic, there has been a rise in tenants looking to rent pet-friendly properties. Here, we’ll take a look at pet rent and pet deposits, including your rights as a landlord to charge tenants extra for having pets. 

The topic of charging pet rent and pet deposits in the UK rental market is not new. You may want to charge tenants with pet rent or pet deposits to ensure that if the pet causes any damage, you’ll have the funds to repair it. It’s important to understand your legal limits regarding fair pricing so that you do not charge tenants unfairly. 

What are pet rent and pet deposits?

A pet deposit is a separate deposit tenants are asked to pay that will be used to cover any pet-related damages or cleaning costs related to the tenant’s pets. This is usually non-refundable and is a once-off fee. 

Pet rent is an added extra to the monthly rent cost and is only charged during the period of time that a tenant has a pet. This will also be used for cleaning services when a pet-owning tenant moves out. 

Ideally, you would either be charging your tenants the pet deposit or pet rent; you would not charge your tenants both of these amounts. 

Legal limitations under the Tenant Fees Act 2019

There are, however, limitations as to how much you can charge your tenants for either pet rent or pet deposits. As a landlord, you would not be allowed to charge a separate pet deposit that exceeds the 5-week rent cap (for properties with annual rents under £50,000. 

Further to this, the pet deposit needs to be kept in a government-approved scheme and will be refundable unless there is damage caused by the pet. 

Also, there is a restriction on any additional fees you can charge. For example, you cannot charge arbitrary pet fees but will be able to adjust the rent fee. Remember to add any additional fees that will be charged to the tenancy agreement so that the tenant is aware from the beginning. 

Many landlords charge pet rent over pet deposits as it supports covering potential damage without exceeding the amount you’re allowed to charge your tenants or violating legal caps. For example, you could charge your tenant an extra £25 per month instead of charging a £250 once-off. 

Potential pet rent and pet deposit concerns 

There are a few things to take into consideration when deciding to charge tenants for owning pets. It’s important to think about how charging higher rents will potentially make your property less desirable for potential tenants with pets. 

Also, some tenants may struggle with long-term cost increases compared to having to pay a one-time pet deposit. Think about the market demand and tenant retention when thinking about charging pet rent or pet deposits or setting pet rent policies. The best thing to do here would be to ensure that you have a solid pet policy. 

How to create a fair and transparent pet policy  

There are certain things that you need to ensure are covered in your pet policy in the tenancy agreement so that tenants are fully informed about pets. Such as: 

• Whether pets are allowed.  
• Any breed/size restrictions.  
• Additional rent charges (if applicable).  
• Tenant responsibilities (e.g., cleaning, damage repairs).  
• Encourage responsible pet ownership by requesting vet records, pet references or insurance for any damage caused.

There is always a risk that comes with allowing tenants to have pets live on your property, which is why we always encourage you to maintain open communication with your tenants so that you’re able to work together with your tenants rather than against them. 

In 2021, the government introduced a new standard tenancy agreement to help renters regarding tenants having pets. This makes it a lot easier for tenants to find properties that allow pets. Further to this, the new standard prevents landlords from placing blanket bans on pets, and in fact, allowing pets will be the default position, giving landlords 28 days to be able to refuse the request for pets with good enough reasoning for saying no. Good enough reasons include: 

• The property is too small.
• Owning a pet is impractical.

However, there is also protection for landlords in that tenants are legally obliged to make sure that they repair any damages and clean any mess made by their pets. This way, both landlords and tenants benefit from the agreement of pets being allowed. 

Pros and cons of allowing pets 

If you’re still unsure about whether you’re willing to allow tenants to own pets while renting from you, we’ve compiled a list of the pros and cons of doing so. This is always a great way to problem-solve and gain perspective on an issue. 

Pros of allowing pets

The first pro to allowing pets is that you won’t necessarily have to worry about short tenancies as this offers stability for tenants. 

Moving house with a pet is no small fete and despite the effort this takes, tenants will need to find another landlord who is willing to allow pets if they move. Tenants are also willing to pay higher rent when pets are allowed. 

Cons of allowing pets

There are, however, some obvious cons to allowing pets too, especially if your tenant is irresponsible and their pet is destructive. Pets, like dogs and cats, that aren’t trained pose a risk to causing damage to things like carpets and furniture or causing foul odours that cannot be removed. Some pets may even cause damage to your garden. 

Besides your own property, you may also receive complaints from neighbours if dogs bark too loudly or if cats enter their garden and cause disruption in that way. 

There are a few safeguards that you can put in place, such as: 

• Regular property inspections.
• Providing tenants with robust pet clauses in the tenancy agreement.
• Vetting potential tenants and their pets.

Make sure that you take care of your property by investing in landlord insurance. At CIA Landlords, we have the expertise to find the best landlord insurance deals that are suitable for your needs as a landlord. Contact us today on 01788 818 670.