How to Create a Pet Policy That Balances Tenant Needs and Property Care - Article Banner

Are you eager to allow pets in your rental property but unsure about how to protect that investment against odors, damage, and potential liability? 

Allowing pets in a rental home is an excellent way to attract a larger pool of residents and even earn more money, but even the most behave pets  can be a bit unpredictable. You don’t want your tenant’s kitties scratching up the doorframes and you don’t need the dog living in your rental unit attacking any neighbors and doing damage

So what do you do? 

You create a strong pet policy that balances tenant needs with property care. Let’s look at how to do that.

Quick Overview:

  • Define what kind of pets are allowed, and establish any restrictions.
  • Screen the pets and ask for vaccination proof and evidence of flea and tick treatment.
  • Charge a pet fee or a deposit (subject to California law).
  • Include a pet addendum in your lease agreement.
  • Remember that assistance animals are not pets and will not be covered by the terms of your pet policy.
  • Inspect your property when you can and enforce your pet policy.

Pet Policies are Important in Protecting Properties

Allowing pets opens your market, especially when you consider the number of tenants who own pets. It’s a large majority. But when you welcome pets into your rental home, you’re also opening your doors to a bit more risk. 

A pet policy is more than a line in your lease agreement. It’s a set of rules and expectations that govern how animals are housed and cared for on your property. Without one, you expose yourself to legal risks, tenant disputes, and unexpected property damage.

A solid pet policy will protect your investment, minimize liability, provide clarity, attract responsible pet owners, and give you a competitive advantage in a crowded rental market. 

Step-by-Step: How to Create a Balanced Pet Policy

Pets are not a protected class federally or in California. That means you have the freedom to decide what kinds of pets you’ll allow, how many you’ll allow, and what you’ll expect from owners who are responsible for those pets. Here are a few steps to a solid and strategic pet policy.

  • Define Which Pets Are Allowed

Rather than keeping an open-door policy, define exactly what types of pets are permitted. Be specific, and make sure potential tenants understand what you will and will not allow. You want to state the species you’ll allow. Dogs and cats are pretty standard. What about birds and other small caged animals? Some owners draw the line at reptiles and exotic animals. Establish size and weight limits. For example, maybe you’ll say yes to dogs under 50 pounds. 

You can also restrict breeds, and this can get controversial. A handful of states has made it illegal for insurance companies to deny coverage on claims involving specific breeds. California is not one of those states. Your insurance company may restrict or refuse to cover any damage or liability involving a high-risk breed (think Doberman, Rottweiler, or Pit Bull). You can exclude those breeds if your insurer will not cover them. 

It’s wise  to limit the number of pets a tenant can have. If you want to avoid puppy or kitten training issues, you can also set an age limit. 

  • Conduct a Bit of Pet Screening 

We think it’s a good idea to request pet information and documentation before you agree to let that pet move in. Ask for the pet’s breed, age, size, and name. Get photos of the pet, and ask for proof of vaccinations and flea/tick control. You’ll also want to collect their spay or neuter status. The best way to obtain information on the pet is having the applicant fill out a pet application and if there are multiple pets a separate application for each pet.

Requiring renters insurance, especially from tenants with pets, is another great way to protect your property. Most plans will include pet liability coverage, specifically for dogs.

  • Charge a Pet Fee

A pet deposit or non-refundable pet fee is a fair way to cover potential damage or cleaning costs. Here’s the difference in deposits and fees and remember, a pet deposit in California is limited. State law limits the total amount a landlord can charge for a security deposit, including any pet deposits, to a maximum of one month’s rent in most cases. A pet fee does not fall under any rental laws or limits.

Pet deposits are a refundable sum held during the tenancy, and used for pet-related damage. A pet fee is a one-time, non-refundable payment for the right to have a pet. Some owners will also charge pet rent, which is a small monthly fee added to the rent for pet occupancy.

You can choose one or combine them, depending on market demand and your own risk tolerance. We recommend a pet fee rather than a deposit, and we also recommend that you charge it per pet.

  • Include a Pet Addendum in the Lease

A well-drafted pet addendum should be attached to your lease and signed by you and your resident. This pet addendum should outline the permitted pet types and limits as well as all behavior expectations. Specify that excessive barking and aggression cannot be tolerated, and pet waste needs to be cleaned and disposed of properly. Any consequences for violations should be stated as well. 

Spell out everything to avoid ambiguity and protect your right to enforce the rules later.

Differentiate Between Pets and Assistance Animals

When is an animal not a pet? 

When it’s an accommodation. This is a critical legal distinction. Under the Fair Housing Act (FHA), tenants with service animals and companion animals that include emotional support animals (ESAs) have protected rights. These animals are not considered pets, and landlords:

  • Cannot charge pet fees or deposits
  • Cannot deny them based on breed or size
  • Must make reasonable accommodations unless doing so causes undue hardship

Over the last few years, the law has changed when it comes to emotional support animals. You are permitted to request documentation that establishes the need for that animal when a disability is not obvious. And, the documentation that’s provided needs to be from a healthcare provider who has seen the tenant in person as a patient and has an existing relationship. 

It’s important to handle these cases carefully and in compliance with fair housing laws. Consult a property manager or an attorney experienced in California’s landlord and tenant laws. 

Pets and Property Inspections

California does not allow property owners to show up at any time and take a look around. You need a reason to enter an occupied rental property, and you need to provide plenty of notice. 

When pets are part of the lease agreement, routine maintenance visits are important. To protect your property, conduct a move-in inspection with photos that document the condition of your property before the tenant and their pet moved in. Schedule periodic walkthroughs with proper notice and when you’re in the property, look for signs of pet damage, odors, or unauthorized animals.

Document any issues and notify tenants in writing. If the problem persists, follow up with enforcement of the lease terms.

Enforcing Pet Policies

Once you’ve created a pet policy, be consistent in its enforcement. Allowing some tenants to skirt the rules can lead to resentment, legal issues, or even fair housing complaints. Be vigilant about unauthorized pets. You don’t want tenants sneaking in an animal you have not approved. Look for failure to pick up waste in common areas and take complaints of aggressive pet behavior or frequent disturbances seriously. 

Continue to review and update your policy. Pet trends, laws, and tenant expectations evolve. Make a habit of reviewing your pet policy at least once a year. Consider whether there are any new regulations. Incorporate changes in insurance coverage and evaluate the market demand for pet-friendly housing.

Pet Amenities Attract Responsible Tenants

If you decide to allow pets, a few strategic investments can increase your property’s appeal to pet owners and help minimize damage. Consider adding:

  • Pet waste stations in yard areas or apartment complexes
  • Dog washing stations in multi-unit buildings
  • Fencing for single-family homes or ground-floor patios
  • Scratch-resistant flooring in high-traffic areas

These features signal that you’re pet-friendly and serious about maintenance.

Allowing pets in your rental property doesn’t have to mean opening the door to chaos or damage. With a clear, enforceable pet policy in place, you can welcome responsible pet owners while protecting your investment.

Tenant ScreeningWe can help you balance the needs of your tenants with the protection of your property. We can also take a rigorous look at any potential pets during the screening process. We know this is a sensitive issue for a lot of rental property owners, especially those with high-value homes in Sonoma County and beyond. We also understand the large pool of tenants who cannot imagine moving into a home without their furry family members. 

Let’s discuss what’s best for you and your property. Contact us at D & G Equity Management.