Should You Allow Pets in Your Rental? The Data Might Surprise You

Ask most first-time landlords about pets and you'll hear some version of the same concern: I don't want damage to my property. It's a reasonable instinct. But when you look at the actual data — vacancy rates, tenant retention, rental income, and real damage statistics — the financial case for refusing pets starts to look much weaker than the case for allowing them.

Here's what the research actually shows, and how to protect yourself if you do go pet-friendly.

The demand picture

71% of U.S. households own a pet. Among renter households specifically, 58% report having at least one pet — more than the 33% who report having a child. Pets are now the #1 most-searched amenity on Zillow, with twice as many renters filtering for pet-friendly listings as for any other feature.

When you say no to pets, you're excluding the majority of the renter population from your applicant pool. In competitive rental markets, you may still fill the unit — but it may take longer, and you may end up with a smaller, less qualified pool of applicants to choose from.

The retention data is compelling

A study conducted by FIREPAW (a non-profit animal welfare research organization) found that pet-friendly properties see tenants stay for an average of 46 months versus 18 months in no-pet rentals. That's 2.5× the average tenure.

Why does this matter financially? Every vacancy costs you real money:

• Lost rent during the gap (30–60 days × monthly rent)
• Cleaning and turnover costs ($200–$500)
• Listing and marketing costs ($50–$200)
• Tenant screening fees ($30–$60)
• Potential touch-up repairs

Total turnover cost per vacancy: $1,500–$4,000. If allowing pets reduces your turnover from every 18 months to every 46 months over a 10-year period, the math is significant: roughly 6.7 tenant cycles versus 2.6 cycles. That's potentially 4+ avoided turnovers — a difference of $6,000–$16,000 in turnover savings alone.

The damage reality

The average worst-case pet damage incident in the FIREPAW study was $430. That's not a typo. The average damage scenario involved carpet cleaning, minor repairs, and odor treatment — not the catastrophic destruction many landlords imagine.

Pet deposits, pet fees, and pet rent exist precisely to offset this. If you collect a $300 pet deposit and $50/month in pet rent from a two-year tenant, you've collected $1,500 in pet-related income — enough to cover almost any realistic pet damage scenario and generate profit.

The landlords who suffer serious pet-caused damage are almost always dealing with a broader problem tenant — one who also doesn't pay on time, doesn't communicate, and would have caused problems regardless of the pet. Thorough screening mitigates this risk.

How to structure your pet policy

Pet deposit: A refundable deposit held for potential pet-related damage. Typically $200–$500. State laws cap this: California's AB 12 caps total deposits at 1 month's rent (covering both tenant and pet deposits), Colorado caps pet deposits at $300, Kansas at ½ month's rent, Nebraska at ¼ month's rent.

Pet fee: A non-refundable one-time charge for accepting a pet. Typically $100–$300 per pet. This offsets your increased wear from the beginning and doesn't need to be returned at move-out.

Pet rent: Additional monthly rent per pet. Typically $25–$50/month per pet ($50–$75 in urban markets). This is ongoing income that compensates for ongoing wear.

Pet criteria: Be specific about what you'll accept. Specify allowed species (dogs and cats only, for example), weight limits (under 50 lbs), maximum number of pets (2), and any breed restrictions you've discussed with your insurer. Note: Fair Housing Act restrictions apply to breed/size policies applied to assistance animals — see below.

The Fair Housing Act rules you must understand

This is the non-negotiable part of any pet discussion.

Service animals and emotional support animals (ESAs) are not pets. They are disability-related accommodations protected under the Fair Housing Act. You cannot:

• Charge a pet deposit, pet fee, or pet rent for service animals or ESAs
• Apply breed or weight restrictions to service animals or ESAs
• Refuse to rent to someone because of their service animal or ESA

You can:

• Ask for documentation of the disability-related need from a licensed healthcare professional (for ESAs; for service animals, you may only ask what task the animal is trained to perform)
• Require that the animal behave appropriately in the property

The Mrs. Murphy exemption allows owner-occupied buildings with 4 or fewer units to be exempt from the Fair Housing Act generally. But this exemption does not allow racial, national origin, or religious discrimination, and many states have removed or narrowed this exemption.

Platform: PetScreening.com offers a free service for landlords where tenants submit pet profiles and assistance animal documentation. It creates a standardized screening process that helps landlords comply with FHA while making informed decisions about animals in their properties.

A practical middle path

If you're nervous about allowing pets broadly, consider these approaches:

• One small pet only: Allows you to reach pet-owner tenants while minimizing exposure
• Dogs up to 25 lbs: Excludes the largest and most energetic breeds while welcoming the majority of dog owners
• Pet-friendly with documentation: Require a PetScreening profile, veterinary records showing vaccinations, and a signed pet addendum with specific rules

A well-structured pet policy with reasonable limits, a pet addendum, and appropriate deposits gives you meaningful protection while opening the door to the majority of the renter market.

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Figuring out your rental policy from scratch? Our free Rental Readiness Quiz helps you understand your overall readiness and what decisions to make first.