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 Allowances in New Tenancies Post-Renters' Rights Act
### What are the new rules regarding pet allowances?
As of May 1, 2026, the Renters' Rights Act 2025 significantly alters how landlords in England handle tenant requests for pets. Landlords can no longer unreasonably refuse a tenant's request to keep a pet. This means a default position is moving towards allowing pets, provided the tenant acts responsibly. The Act introduces a right for tenants to request a pet, and landlords must respond in writing within 28 days. An unreasonable refusal could lead to disputes. Furthermore, the Act explicitly prohibits landlords from charging pet deposits or increasing the rent (often termed 'pet rent') to cover the perceived additional risk of a pet. Instead, landlords can require tenants to obtain pet insurance to cover any potential damage to the property caused by the animal. This legislative shift aims to make renting with pets more accessible for tenants while providing landlords with a mechanism to mitigate financial risk.
### Can landlords still charge a higher deposit or 'pet rent'?
No, landlords cannot charge a higher security deposit or an additional 'pet rent' under the Renters' Rights Act 2025. The Tenant Fees Act 2019 already caps security deposits at five weeks' rent for properties where the annual rent is less than £50,000, or six weeks' rent if the annual rent is £50,000 or more. The new Act reinforces this by explicitly stating that charges related to pets, beyond requiring pet insurance, are prohibited. Attempting to circumvent this by, for example, classifying a portion of the rent as a 'pet premium' would likely be deemed an unlawful charge. For instance, if a property's rent is £1,000 per month and a landlord tries to charge £1,050, claiming £50 is for the pet, this would be illegal. The intention is to ensure landlords recover costs only for actual damage, not as an upfront charge.
### How can landlords protect their property from pet-related damage?
With the inability to charge higher deposits or pet rent, landlords' primary protection against pet-related damage now rests on requiring tenants to hold suitable pet insurance. This insurance should explicitly cover damage caused by the pet to the landlord's property. The specific terms of this insurance would be between the tenant and the insurance provider, but the landlord can stipulate that such a policy must be in place and maintained for the duration of the tenancy. Additionally, robust inventory and schedule of condition reports, complete with photographic and video evidence both pre- and post-tenancy, become even more critical. This documentation is essential for demonstrating any damage that occurs during the tenancy, which can then be claimed against the tenant's pet insurance. For example, if a tenant's cat scratches £500 worth of damage to new carpets, the pet insurance would be the mechanism for recovery, not an additional deposit.
### What factors justify refusing a pet request?
While landlords cannot unreasonably refuse a pet request, certain factors may still constitute a reasonable refusal. These are typically related to the property's suitability, the terms of the superior lease, or the pet's nature. For example, if the property is a flat in a block where the head lease explicitly forbids pets, this would be a reasonable ground for refusal, as the landlord would be breaching their own lease agreement. Similarly, if the property is very small or unsuitable for a large, high-energy animal, this could be considered. Considerations such as potential noise disturbance to neighbours or the pet's species (e.g., exotic animals requiring specialist care) might also be relevant. It is crucial for landlords to document their reasons for refusal clearly and objectively, demonstrating that they are not acting arbitrarily.
## Benefits of a Clear Pet Policy
* **Wider Tenant Pool**: Attracting responsible pet owners can significantly broaden your applicant base, potentially leading to quicker lets and lower void periods.
* **Longer Tenancies**: Pet owners often seek stability and are less likely to move, contributing to longer tenancy durations and reduced turnover costs. An average BTL property in the UK might see £1,500 in re-letting costs (marketing, referencing, inventory) which can be avoided by longer tenancies.
* **Responsible Ownership**: Clear policies encourage responsible pet ownership, with tenants more likely to maintain the property if their beloved pet is allowed.
## Potential Challenges with Pet Allowances
* **Damage Risk**: Despite insurance, pet damage can occur, potentially leading to disputes over what constitutes 'wear and tear' versus insurable damage.
* **Neighbour Disputes**: Noise or odour from pets can lead to complaints from neighbours, requiring landlord intervention.
* **Lease Restrictions**: Many leasehold properties, especially flats, have clauses prohibiting pets, which can make compliance challenging for landlords.
## Investor Rule of Thumb
The shift in pet legislation makes proactive pet policies and robust insurance requirements non-negotiable; treat pet accommodation as a standard amenity, not an optional extra.
## What This Means For You
The Renters' Rights Act 2025 changes require landlords to adapt their approach to pet allowances. Most landlords don't lose money because of pet damage, they lose money because they haven't planned for it. If you want to know how to integrate these new pet policies into your tenancy agreements and landlord operations, this is exactly what we analyse inside Property Legacy Education.
Steven's Take
The abolition of Section 21 and the changes to pet allowances under the Renters' Rights Act 2025 are significant. For property investors, it means adapting our mindset and systems. You can't just say 'no pets' anymore without a valid reason. Your focus needs to shift from blanket bans to managing the risks through other means, primarily pet insurance. This necessitates clear communication with prospective tenants and a comprehensive understanding of the new legal framework. Proactivity in defining your pet policy and ensuring appropriate insurance is key to mitigating potential issues and maintaining a compliant, profitable portfolio.
What You Can Do Next
Review your existing tenancy agreements – Update them to reflect the new pet allowance regulations and the prohibition on 'pet rent' or increased deposits, aligning with the Renters' Rights Act 2025.
Draft a clear pet policy Add a pet policy addendum to your tenancy agreements outlining expectations for pet ownership, requiring pet insurance, and detailing responsibilities for damage or nuisance.
Communicate with tenants – Discuss pet requests thoroughly, setting clear expectations from the outset and providing your reasons in writing if a refusal is necessary, referencing your lease or property suitability.
Consult your solicitor – Seek legal advice on specific clauses in your superior lease regarding pets, and on drafting a compliant pet policy to avoid future disputes, especially for leasehold properties.
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