Great question! I ALWAYS allow pets, which is unsual because a lot of landlords don’t. So if you are allowing pets, advertise that you do with additional security to one-up any local competition!

There are several ways to handle pet security deposits. I ALWAYS do it on a case-by-case basis. So for example, if a tenant wants to bring 1 cat, we may charge $100 additional refundable security deposit (and that’s it), whereas a large dog (especially a 90lb one!) we charge typically $250, with $100-$150 refundable, depending on if the unit has hardwood floors, vs carpets. If your unit has carpets, PLAN on replacing them when this tenant moves out, so make sure you cover yourself now! Always plan for the worst! ESPECIALLY since it’s a puppy and probably not totally potty trained yet! But we also make the security deposit up-front partially non-refundable instead of charging extra rent each month. Tenant’s get mad about “extra rent” because they see it EACH month, whereas Security Deposit paid up front that is non-refundable (even partially), it sits better.

Also, make sure your state allows these types of Security Deposits and the amount you plan on charging (NY, where my properties are, does).

Thanks!

-Justin