These Renters Have Gone to the Dogs!
Friday, August 7, 2009 | Ethan RobertsRating:
I recently returned from a seven-day trip to the Gulf Coast of Florida, where I own two rental properties. The tenants had just moved out of one of the homes, and the purpose of my trip was to spruce up the home, get it ready to be re-rented and to find new tenants, if possible, within a week.Getting the home ready was fairly easy. I touched up some scuff marks on the walls with paint, vacuumed the carpets, walls and ceilings, and trimmed up the bushes in the front. Fortunately, the tenants had left the home clean and in very good shape, and it only took me one day to put it into what I consider to be "turn key" (i.e., move-in) condition.
So far, so good!
OK, time to find a new tenant for the home. First, I put a "For Rent" ad on Craigslist. Then I placed a "For Rent" sign on the front lawn. Attached to the sign was a box to hold the 50 beautiful color brochures that I created with MS Publisher.
I also set out a couple of those arrow-shaped directional "For Rent" signs on the outlying main roads to lead people to the home. Finally, I reduced the price a little bit from last year, because so many people are struggling right now and looking to hold down expenses.
Ad ... check. Signs ... check. Marketing brochure ... check. Price reduction ... check.
I was ready.
But what I didn't count on ... were ... the dogs!
Hey, let's go see our new home!
Listen, I have nothing against dogs in general. So, after reading this article, please don't write and tell me that I'm a %#$#^@&* dog hater. In fact, growing up on Long Island, my family always had Old English Sheepdogs in our home. You may know that breed of dog from the Disney movie "The Shaggy Dog." A cuter, more-gentle and loving dog, you could not find.
Who wouldn't love this little guy?
These days, in my own home in Florida, I own two cats. But just because I have always had pets in my primary residence does not mean that I must allow pets in my investment properties.
If the cats damage my home, I will pay to have the damage fixed. But will a tenant do the same? Often the answer is no.
Some People Own Pets. Others Have Their Own Zoo!
In fact, I really don't understand why so many renters seem to own multiple dogs and cats these days. A lot of landlords do not allow pets, so if tenants know they will be renting for a while, why would they take on so many dogs or cats?
Perhaps it's because a lot of renters right now are former homeowners who have lost their homes to foreclosure. When they owned their home, they bought a dog or cat. And now that they are forced to rent again, they are stuck trying to find landlords who will permit their pets in a rental home or apartment.
So, as the week progressed, I began getting dozens of phone calls about my home for rent, but yet it seemed like every single one of the callers had at least one or more dogs.
For example, there was one eager family to whom I showed the home. I probably should have screened them more carefully on the phone, but I was at the home anyway, so invited them to come have a look. The husband and wife seemed pleasant enough, but they had two little girls about 3 or 4 years old.
As soon as the family entered the home, the girls began running around the interior like wild animals -- shrieking and banging into the walls and doors, The parents made only feeble, apologetic attempts to control their behavior. The kids would calm down for about 10 seconds, and then go wild again.
And This Was Before They Mentioned Their Pets...
As if this was not bad enough, the parents then informed me that they also have three dogs and a cat! This was too much, and I cringed to think of this family renting my home.
If the pets behaved even half as badly as the kids, my property could be wrecked inside of a month!
The next day, I called them and politely told the husband that I'd rather not have any pets in the home, so he would have to look for another place. After all, the law says I can not discriminate against families with children, but there are no such discrimination laws against three dogs and a cat!
'Ha ha, Landlord, you'll HAVE TO take us!'
What made me laugh was that, all through the week, one caller after another with pets kept telling me how wonderful and extraordinarily well-behaved their dogs are.
"My dogs are always clean."
"My dog is crated all day long." (How nice for the dog.)
"My dog is outside 24/7." ("Even in the rain? What happens if there's a hurricane or tropical storm?" I asked incredulously. "Do you think he might drive the neighbors crazy with barking, outside in the 95-degree heat while you are at work?")
"My dog is just an old boy who sits in one spot all day." (Leaving grease marks on the carpet?)
"My dog would never bite anyone." (Until the first time!)
"My dog is crated all day long." (How nice for the dog.)
"My dog is outside 24/7." ("Even in the rain? What happens if there's a hurricane or tropical storm?" I asked incredulously. "Do you think he might drive the neighbors crazy with barking, outside in the 95-degree heat while you are at work?")
"My dog is just an old boy who sits in one spot all day." (Leaving grease marks on the carpet?)
"My dog would never bite anyone." (Until the first time!)
Here is how the typical renter views and describes his or her doggie:
Little 'Foo Foo' never hurt a soul or made a mess...
And here is how Ethan visualizes that same pooch:
Hello, Mr. Postman, so nice to see you...
The fact of the matter is that dogs can do a great deal of harm to a rental property. Dogs have been known to scratch windows and sliding glass doors with their nails, chew on window ledges and door trim, stain the carpets with urine or feces, poke holes in the screens, dig holes in the backyard, leave grease marks on the walls, and leave the home with flea infestations that take weeks to eradicate.
Pooches, Properties Don't Always Mix
Another problem with renting to tenants with dogs is that, if the dog gets loose and bites someone, not only is your tenant liable, but you, the landlord, can also be sued.
There are actually several breeds of dogs that are not insurable with many of the large insurance companies. These include pit bulls, American bulldogs, Rottweilers, and Doberman Pinschers.
So, if you rent a home to a tenant with one of these breeds, you could be setting yourself up for trouble. There are more than 4.7 million people bitten by dogs each year. Don't believe the tenant when he says the dog is always on a leash or in his cage.
A Short-term Loss Beats Long-term Problems
By the end of the week, because I did not want a tenant with pets, I still did not have anyone to rent my home. And I needed to return to my own home, some 280 miles away.
If I left, it meant the possible loss of a full month's income, as well as additional expenses like electricity and lawn maintenance. On the other hand, allowing a tenant to move in with several pets could have put me at risk for any of the problems that I cited above.
Furthermore, sometimes there is no actual damage, but the home just begins to take on odors from the dog, and then it becomes more difficult to rent or sell later on.
Weighing all of this in my mind, I made the tough decision to forgo the short-term income in favor of the long-term benefit to the home. Thus, I left town with no tenant in place.
Pooches, Properties Don't Always Mix
Another problem with renting to tenants with dogs is that, if the dog gets loose and bites someone, not only is your tenant liable, but you, the landlord, can also be sued.
There are actually several breeds of dogs that are not insurable with many of the large insurance companies. These include pit bulls, American bulldogs, Rottweilers, and Doberman Pinschers.
So, if you rent a home to a tenant with one of these breeds, you could be setting yourself up for trouble. There are more than 4.7 million people bitten by dogs each year. Don't believe the tenant when he says the dog is always on a leash or in his cage.
A Short-term Loss Beats Long-term Problems
By the end of the week, because I did not want a tenant with pets, I still did not have anyone to rent my home. And I needed to return to my own home, some 280 miles away.
If I left, it meant the possible loss of a full month's income, as well as additional expenses like electricity and lawn maintenance. On the other hand, allowing a tenant to move in with several pets could have put me at risk for any of the problems that I cited above.
Furthermore, sometimes there is no actual damage, but the home just begins to take on odors from the dog, and then it becomes more difficult to rent or sell later on.
Weighing all of this in my mind, I made the tough decision to forgo the short-term income in favor of the long-term benefit to the home. Thus, I left town with no tenant in place.
Have I made the right decision?
Protect Yourself from Supposedly Pet-free Owners
It is not uncommon for a tenant to sign a lease that forbids pets, but then bring one into the home anyway. When this happens, in many states, the landlord has the right to give a "seven days to cure" notice, which informs the tenant that they have seven days to remedy the situation (i.e., to remove the pet from the home), or else face eviction proceedings.
The notice also states that, if the tenant repeats the violation again in the future, the landlord can evict without having to file another "seven days to cure" notice.
So every landlord has an important decision to make, whether or not to allow pets in their rental properties. The main advantage of allowing pets is that you may find a tenant sooner. Because of this, some landlords do advertise as "pet friendly." The disadvantage, as noted previously, is the potential for damage, odors, and of course, liability.
Because of this, if you do allow pets, it is imperative that you charge the tenant a NON-REFUNDABLE PET FEE.
Those few times when I have allowed pets in a property, I have usually taken a pet fee of $300. Be sure the tenant understands in writing that this is a non-refundable fee and not a deposit.
This will protect a landlord from tenants who don't pay their last month's rent because the landlord is holding an equivalent amount of money in their security deposit. Then when they move out, the landlord finds hundreds of dollars' worth of pet damage, and has no security deposit to use as compensation.
Another idea is to charge additional rent to people with dogs or cats, perhaps $25 or $30 more per month. The longer the tenant lives in the home, the more income the landlord will have to offset any possible damage done by the pet.
The Wait Will be Worthwhile
So there I was, heading for home, about 200 miles down the interstate, with no tenant signed up. I didn't regret my decision to reject all the prospective renters with pets, but still I was anxiously wondering when I could return to the Gulf Coast to interview more tenants, when suddenly my cell phone rang.
"Hello, I am calling about your home for rent. I drove by the home and it looks terrific."
"Thank you very much. May I ask, do you have any pets?" I said, expecting the worst.
"No, it's just my husband, myself, and our 19-year-old son. We have no pets."
HALLELUJAH!
Tycoon readers, as they say, "all good things come to those who wait!" Sooner or later, when you are patient, you will get the tenant you want. Always resist the temptation to let a quick buck cloud your better judgment.
And now readers, it's your turn. Have you ever rented to tenants with pets and, if so, was it a positive or negative experience? Have your pets ever damaged your own home? Let me hear from you!
Angels or devils...?
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Ethan Roberts
Contributing Editor
The Tycoon Report
