Pet Renting: Evaluating the Impact of Pet Policies on Seattle Real Estate Investments

Should your Seattle area rental properties allow pets? A recent Zillow study placed Seattle as the 9th-most pet-friendly city for renting, meaning that quality tenants likely have pets and expect them to be accommodated in their homes. Landlords and property owners have plenty to consider when it comes to their rental properties, including the monthly rate per unit, how to keep up with maintenance, and how to promote properties when vacancies arise. However, another important point of consideration that has a direct impact on tenant retention and satisfaction is the pet policy for each property.

While it seems like deciding whether or not to allow pets would be a simple decision to make, there are valid reasons for both unease and enthusiasm about allowing pets and going pet-free. Powell Property Management has been operating in South Sound and South Seattle for over a century, and we've experienced just about every pet-related policy, success, and fiasco under the sun. How do we set our pet policies and evaluate their impact? We'd love to lay it out for you.

Common Concerns With Allowing Pets in Rentals

Allowing pets in your rental properties can enhance tenant satisfaction and broaden your potential tenant pool. However, landlords often worry about the additional costs associated with pet-related damage, such as odor removal and repairs. Understanding Seattle’s legal landscape and best practices for managing pets can help mitigate these concerns.

Potential Property Damage: Pets, especially dogs and cats, can cause significant wear and tear on a property. Common issues include:

• Scratched floors and walls
• Chewed carpets and furniture
• Stained or damaged carpets from accidents
• Odors that can be difficult to eliminate between tenants​
  

Noise Complaints: Pets, particularly dogs, can be noisy, leading to potential complaints from neighbors or other tenants. Barking dogs can disturb the peace, especially in multi-family units, and can lead to conflicts among tenants.

Allergies and Health Concerns: Some tenants may have severe allergies to pet dander, which can persist even after extensive cleaning. This can limit your pool of potential renters if previous tenants had pets.

Increased Maintenance Costs: Regular cleaning and repairs can be more frequent in pet-friendly units. This includes the need for professional carpet cleaning, odor removal, and potential repairs to flooring or walls.

Insurance Implications: Allowing pets can impact your property insurance. Some policies may restrict certain breeds or types of pets or increase premiums if pets are allowed.

Risk of Abandonment or Neglect: Pets can be left alone for extended periods, leading to potential property damage or disturbing other tenants. In worst-case scenarios, pets might be abandoned, leaving landlords with the responsibility of finding care or rehoming the animal.

Is it Legal to Charge Pet Rent and Pet Deposits?

Before deciding on whether or what to charge for pet rent, the most top-of-mind question for landlords is probably, "Am I allowed to ask for a pet deposit?" According to the City of Seattle, yes, but with restrictions. This deposit must be refundable and is meant to cover any damage caused by the pet. Tenants can opt to pay this deposit in three equal installments starting from the first full month of the pet's occupancy.

What is a Typical Pet Deposit in the Seattle Area?

Permitting tenants to keep pets can, in fact, benefit property owners and landlords by collecting monthly pet rental fees and pet security deposits. So, how much do landlords charge for pets? Under Seattle’s tenant-landlord laws, pet damage deposits can be no more than one-fourth (25%) of the cost of the first month of rent.

Tenants can also be charged a monthly pet rental fee as part of their rental rates, which increases your monthly income on pet-friendly properties. Over time, if you are collecting pet fees from each tenant who owns a pet, you can significantly increase the income from your rental properties.

The average monthly pet rent is about $32 per pet. This figure can vary depending on the type of property, the neighborhood, and the type of pet, with some landlords charging anywhere from $25 to $100 per month per pet. There is no legal cap on the amount you can charge for pet rent as long as it's reasonable and disclosed in the lease agreement.

Consider the possibility of renting a house with multiple pets. Per Seattle laws, you cannot request more than one pet deposit per household. Whether a tenant has one pet or four, you cannot charge them a different amount. When deciding to allow pets in your rental, consider how many pets your policy will allow.

Can You Ban Service Animals if Your Property is Not Pet-Friendly?

Keep in mind that you cannot reject an applicant with a service animal, even if you have a no-pets policy. You also cannot charge tenants deposits, extra fees, or cleaning charges for service animals, or you risk a discrimination complaint, according to the Tenants Union of Washington State. However, tenants with service animals still must follow all pet-related rules and guidelines and observe leash laws, waste disposal laws, and noise policies

Understanding the legal distinctions between pets, service animals, and emotional support animals (ESAs) is crucial for landlords. In Washington State, service animals are not considered pets and must be accommodated regardless of your pet policy.

Emotional support animals, while not granted the same legal status as service animals, are also protected under the Fair Housing Act. This means that landlords cannot deny housing to tenants with ESAs, nor can they impose pet fees or deposits. However, you can require documentation from a licensed mental health professional to verify the need for the ESA.

Structure Of a Pet Rental Agreement

One way to ensure the arrangement runs as smoothly as possible for property owners and tenants is to establish a landlord pet policy that clearly outlines rules and expectations and places responsibility on the pet owners. You can request documentation – such as vet records, references, and proof of renters insurance with pet coverage – that demonstrates the pet owner is a responsible caretaker. Your pet policy should be included with the lease agreement, whether or not the property allows pets, and reviewed when tenants sign the lease. The policy should include the following elements.

• What types of animals are allowed
• All deposits and monthly fees required of pet owners
• Rules pet owners must follow during their tenancy

Pet-Friendly Amenities: Enhancing Value and Justifying Higher Rent

Offering pet-friendly amenities can significantly enhance the appeal of your rental property, attract a broader tenant base, and justify a higher rent. In a competitive market like Seattle, where pet-friendly rentals are in high demand, investing in these amenities can lead to increased tenant satisfaction and longer lease terms.

• On-Site Dog Parks or Pet Relief Areas: Providing a designated space where dogs can play off-leash is a huge draw for pet owners. An on-site dog park can also reduce wear and tear on your property by giving pets a proper place to exercise.
  

• Pet Washing Stations: Installing a pet washing station or grooming area is another attractive amenity. These facilities make it easier for tenants to keep their pets clean, reducing the likelihood of damage to your property from dirty or muddy animals.

• Pet-Friendly Flooring: Durable, scratch-resistant flooring like vinyl or tile can minimize damage caused by pets. While this might involve a higher initial investment, it can lower maintenance costs over time.

• Fenced Yards or Patios: Private outdoor spaces, such as fenced yards or patios, are highly desirable for tenants with pets. These areas provide pets with safe outdoor access, which can be a strong selling point.

• Pet Waste Stations: Installing pet waste stations throughout the property encourages tenants to clean up after their pets, maintaining a clean and pleasant environment for all residents.

• Pet Sitting or Dog Walking Services: Partnering with local pet care providers to offer pet sitting or dog walking services can be a unique selling point. These services are highly valued by busy tenants and can justify higher rent, as they add convenience and peace of mind for pet owners​

Additional Tips for Handling Pets on Rental Properties

Here are a few more tips from the nonprofit organization American Humane to ease your concerns and help you oversee the to prevent potential issues for both parties.

• Consider a flexible policy. Assess each prospective tenant and their pet(s) on a case-by-case basis rather than setting predetermined rules limiting the size or breed of permissible pets
• Meet the pet yourself to see whether they’re well-behaved and friendly, which can help ease your fears about liability and damage
• Include a requirement for pets to be spayed and neutered, which helps prevent unplanned litters and mitigates undesirable behaviors that can potentially cause damage or be a nuisance for other tenants
• Require pets to be vaccinated for rabies and distemper
• Ask for references from previous landlords when screening to evaluate the tenant’s history and whether they kept their previous rental in good condition, even with a pet

Expert Property Management in South Puget Sound, Pups and All

Overseeing the implementation and enforcement of your pet policy is another way your Seattle or South Puget Sound property management company can be of assistance. At Powell Property Management, our team can review your rental pet policy with each applicant during the tenant acquisition phase, manage pet damage deposits, and oversee that regulations involving pets are followed properly. Our expert team is ready to answer your call today and every day thereafter. Connect with us today to get started!