Things You'll Need:
- Lease with addendum
- Security Deposit
- Lawyer
-
Step 1
Consider and reconsider renting to a tenant with a pet. If you are heading into soft rental market you may be forced to consider renting to a tenant with a pet or face not having a tenant pay for your investment. Consider the potential problems a pet can pose, but also realize that not all pets will pose issues.
-
Step 2
Check references. When you call the past and present landlords ask them about the pet. If it is a dog ask about bite damage to the floors, doors, and walls and if the dog barks. If it is a cat ask about litter box behavior. Cat urine odor can get into hardwood floors and remain; removing it can be a costly fix. Pay close attention to what the PAST landlord says, as the present landlord may be willing to say that a nasty pet is very well behaved in order to get rid of the tenant.
-
Step 3
Meet the pet(s). Most tenants looking for an apartment with an animal will tell a prospective landlord that their animal is well behaved. Many of these tenants are telling the truth, but many are not. If the tenant has told you the dog is a five pound Chihuahua, make sure Fido is not actually an eighty-pound Labrador.
-
Step 4
Collect a security deposit. Consult a lawyer or real estate professional to find out how much, legally, you can collect as a security deposit. In most states you cannot collect a "pet deposit". Plan on collecting the maximum amount if you are renting to a tenant with a pet.
-
Step 5
Evaluate the total damage a pet could cause. For instance, if you are renting to a large dog consider the cost of refinishing the floors in case the dog's nail's cause damage. If the damage amount is more than what you can legally collect as a security deposit consider the risk you are incurring and that you may be better off not renting to the tenant.
-
Step 6
Set limits. If you are renting to a tenant with a cat, write in the lease that only one (1) cat is allowed on the premise. Some tenants may assume you are fine with them having more pets because they are permitting your animal, which is probably not the case. Know that two animals can do twice the damage as one!
-
Step 7
Be specific. If you are renting to a tenant with a trained nine year old dog that never barks named Mark, make sure that in the lease you name "Mark" as the only dog allowed on the premises and not "1 dog is allowed in the apartment". If Mark dies you want the ability to say no to a tenant when he asks if he can bring an unruly puppy into your investment.
-
Step 8
Put it in the lease. In the lease addendum include clauses which set the boundaries for the tenant and pet. For instance, write that the dog must be on a leash at all times in the common areas of the building, that waste must be picked up immediately outside the building, and that barking must be kept to a minimum. Include a statement which states that if the pet becomes a hardship for the neighbors that you, the landlord, reserve the right to ask the tenant to remove the pet or to terminate the lease. Check the laws for your state before you change or add to the body of a lease, however.
-
Step 9
Insurance. If you are renting to a tenant with a dog be sure to check on the breed to see if it is considered one of the dangerous breeds. Some insurance companies will not insure apartments with particular breeds. Visit the follow link: http://www.netquote.com/newsletter/archive/09-2008/dogbreeds.aspx
