What's the best way to word a pet clause in a UK AST to protect against damage, and can I still ask for a higher pet premium or deposit legally after the Tenant Fees Act?
Quick Answer
Landlords cannot charge a higher deposit or a pet premium due to the Tenant Fees Act 2019. However, a well-drafted pet clause in the AST can mitigate damage risks by stipulating tenant responsibilities for pet insurance, hygiene, and specific repairs.
## Protecting Your Investment with a Comprehensive Pet Clause
From June 2019, the Tenant Fees Act 2019 limits tenancy deposits to five weeks' rent for properties with an annual rental income under £50,000, making additional pet deposits illegal, including for damage. Despite this, a well-drafted pet clause in an Assured Shorthold Tenancy (AST) agreement can clarify tenant responsibilities and mitigate risks associated with pets. This ensures that while you can't charge extra upfront, you have legal recourse for damage caused.
### What are the key elements of an effective pet clause?
An effective pet clause clearly outlines the tenant's obligations and acknowledgements regarding the presence of a pet. Firstly, it should state that keeping a pet requires the landlord's prior written consent, specifying the permitted type and number of animals. Secondly, the clause needs to make the tenant explicitly responsible for all damage caused by the pet, beyond fair wear and tear, and for addressing any nuisance to neighbours. This includes requiring professional cleaning of carpets and soft furnishings at the tenancy's end, and treatment for fleas or other parasites if necessary. Thirdly, it should stipulate that the tenant must rectify any alterations or damage to the property, including garden areas, caused by the animal. Finally, landlords can require the tenant to obtain suitable pet damage insurance to cover potential repair costs, providing the landlord with proof of such policy.
### Can landlords still ask for higher deposits or pet premiums?
No, landlords cannot ask for a higher deposit or a specific 'pet premium' to cover potential damage, as this is prohibited by the Tenant Fees Act 2019. The Act caps tenancy deposits at five weeks' rent if the annual rent is less than £50,000, or six weeks' rent if the annual rent is £50,000 or more. Any charge or payment requested by a landlord that is not a 'permitted payment' (such as rent, utilities, council tax, or a security deposit within the legal limit) is banned. Therefore, requesting an additional deposit specifically for a pet, or increasing the standard deposit above the legal limit, would be unlawful. For instance, if a property rents for £1,000 per month, the maximum deposit you can request is £1,153.85 (£12,000 annual rent / 52 weeks * 5 weeks).
### How does pet insurance work within the AST context?
While you cannot charge a pet premium or additional deposit, you can *require* the tenant to purchase pet damage insurance as a condition of allowing the pet. The AST should clearly state that the tenant must hold a valid pet liability insurance policy throughout the tenancy, covering damage to the landlord's property and third-party liabilities arising from the pet. This moves the financial risk of significant damage from the landlord to an insurance provider. For example, if a pet causes £3,000 worth of damage to flooring, and the tenant's deposit is capped at £1,153.85, the insurance policy would cover the remaining £1,846.15. The tenant would need to provide proof of this insurance policy to the landlord upon request, and maintain it for the full tenancy duration. This helps mitigate financial exposure for the property owner.
### What if a pet causes damages exceeding the deposit?
If a pet causes damage that exceeds the tenant's security deposit, the tenant is still legally liable for those additional costs. The pet clause should clearly stipulate that the tenant is responsible for the full cost of repairing such damage. If the tenant has pet damage insurance, the claim would then be made against that policy. If they do not have insurance or the damage falls outside the policy, the landlord would need to pursue the tenant directly for the outstanding balance. This typically involves making deductions from the deposit first, then issuing an invoice for any excess, followed by potential small claims court action if the tenant refuses to pay. Landlords should retain clear photographic and video evidence of the property's condition before and after the tenancy to support any claim, regardless of whether it's against the deposit, insurance, or the tenant directly. Checking **tenant responsibilities for pet damage** is key here.
Steven's Take
The Tenant Fees Act fundamentally changed how we manage pets in rentals. We can't simply charge more upfront. This means a shift towards contractual clauses and insurance. Focus on making the tenant fully responsible for pet damage, hygiene, and noise, and ensure they obtain robust pet damage insurance. This transfers the financial risk without breaking the law. It’s about careful drafting and due diligence, not extra fees, to protect your investment. Remember, clear expectations upfront prevent disputes later.
What You Can Do Next
Review your current AST template: Ensure your pet clause is legally compliant and comprehensive. Refer to template ASTs provided by organisations like the NLA or RLA (now NRLA) for guidance.
Draft a specific pet agreement addendum: Create a separate document countersigned by the tenant, detailing specific pet responsibilities and the requirement for pet damage insurance. This can be included as a schedule to the AST.
Require proof of pet damage insurance: As part of the tenancy agreement, mandate that the tenant provides evidence of a valid pet liability insurance policy before the pet moves in, and annually thereafter. Check what the **best pet insurance for tenants** is.
Thoroughly document property condition: Conduct detailed inventory reports with photographic and video evidence before and after tenancy to support any claims for pet-related damage. This is crucial for deposit dispute resolution services like DPS, MyDeposits, or TDS.
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