What's the best way to handle tenant requests for pet allowances in a new tenancy agreement, given the recent White Paper suggestions, and can I still charge a higher deposit or 'pet rent'?
Quick Answer
Landlords must carefully manage pet requests, as charges like 'pet rent' or higher deposits are generally prohibited. Emphasise clear, responsible pet clauses within the tenancy agreement.
## Navigating Pet Requests While Protecting Your Investment
Allowing pets can genuinely broaden your tenant pool, potentially reducing void periods and increasing long-term tenancy. Responsible pet owners often make excellent tenants. However, protecting your asset is paramount. The key is balance and clear communication from the outset.
* **Embrace a 'Pets Considered' Approach**: Instead of an outright ban, stating 'pets considered' means you are open to discussion. This allows you to vet the pet and owner, asking for references for the animal if possible. The default position should increasingly move towards allowing pets unless there's a specific breach or reason not to, especially with the Renters' Rights Bill abolishing Section 21 expected in 2025. This makes a positive relationship even more crucial.
* **Require a 'Responsible Pet Ownership' Clause**: This clause should detail tenant responsibilities, including keeping the property clean and free from pet damage, controlling noise, and appropriate waste disposal. For example, damage caused by pets, such as scratched doors or soiled carpets, would be the tenant's financial responsibility. You could also specify professional cleaning at the end of the tenancy if a pet resided there, ensuring the property is returned in good order, though this cannot be a blanket charge; it must relate to actual costs incurred.
* **Request Pet Insurance**: Asking the tenant to obtain pet insurance for third-party liability and property damage can offer an additional layer of protection, covering potential costs if the animal causes significant damage. This is a reasonable request that doesn't breach fee regulations.
## Pitfalls to Avoid: Charges and Restrictions That Could Land You in Trouble
The landscape for tenant fees and deposits is strict. Diverging from regulations can result in financial penalties and reputational damage.
* **No 'Pet Rent'**: Charging an additional monthly fee specifically for a pet ('pet rent') is generally prohibited under the Tenant Fees Act 2019. This would likely be considered an prohibited payment. Your rent advertised must be the total rent charged.
* **No Higher Deposits**: You cannot charge a higher security deposit for tenants with pets. Security deposits are capped at five weeks' rent if the annual rent is under £50,000, and six weeks' rent if the annual rent is £50,000 or more. Any amount exceeding this is illegal, regardless of pet ownership, and you would be liable to repay it.
* **Unreasonable Refusal**: While not yet enshrined in law, the 'White Paper suggestions' indicate a future direction where landlords would need a compelling reason to refuse a pet request, rather than an automatic ban. An example of an unreasonable refusal might be denying a well-behaved cat in a suitable property without a specific allergic tenant concern or demonstrable damage risk.
* **Professional Cleaning Clauses**: Be careful with mandatory professional cleaning requirements at the end of a tenancy. While you can expect the property to be returned to the same standard of cleanliness, you cannot automatically stipulate professional cleaning unless it's to remedy specific pet-related damage or if the tenant agrees to it at the end of the tenancy. An example of an acceptable clause would be: "The tenant agrees to have carpets professionally cleaned if a pet has resided in the property and evidence of pet dander or odour is present at checkout."
## Investor Rule of Thumb
Navigate pet requests by focusing on responsible pet ownership clauses rather than prohibited fees, understanding that a good tenant with a pet is often better than a vacant property.
## What This Means For You
Navigating these nuances correctly means the difference between a compliant, thriving tenancy and potential disputes or fines. You need an approach that protects your investment while also attracting quality tenants. Getting it wrong with pet clauses, deposits, or prohibited payments can be costly. If you want to know how best to structure your tenancy agreements for pet-friendly properties whilst remaining compliant, this is exactly what we dissect inside Property Legacy Education.
Steven's Take
The pet debate is significant, especially with changes to landlord-tenant law. Avoid the temptation to charge 'pet rent' or inflated deposits, as these are prohibited. Focus instead on robust tenancy agreement clauses that put the onus on the tenant for responsible pet ownership and any damage caused. This approach protects your asset without breaking the law and opens your property to a wider, often more stable, tenant demographic. The Renters' Rights Bill aims to make pet ownership more accessible in rentals so it's wise to position your portfolio to adapt.
What You Can Do Next
Review your tenancy agreement: Ensure it includes a 'pets considered' clause and specifically outlines tenant responsibilities regarding pet behaviour and cleanliness.
Educate yourself on tenant fees: Reconfirm current regulations on deposits (capped at 5 or 6 weeks' rent) and prohibited fees to avoid illegal charges like 'pet rent'.
Consider pet insurance: Encourage or require tenants to obtain pet liability insurance to cover potential property damage.
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