Topic: Cats: One-time fee or monthly rent

Colleagues,

I am considering changing the current one-time only non-refundable cat fee, currently $150 per cat, to a monthly $15, perhaps $20, perhaps even $25 add-on to the rent. I'd enjoy hearing from those of you who've implemented such a fee, more specifically how would recommend going about implementation, what you feel is an appropriate monthly rate and whether or not it should be per cat, and what to expect in terms of barriers and pushback.

Best,

Stephan

Hi Stephan!

My community made a change in February that combined a little of both of your ideas. Previously, we had a $200 pet deposit. Of that, $100 was refundable and the resident was charged $10 monthly pet rent. We eliminated that program and decided to charge a one-time $50 pet fee, $35 per month pet rent, and eliminate the deposit altogether. When we did the math, we found that we would almost double our pet rent/fee revenue on a 12 month lease. It has been a great option for new and current resident because they do not have to come up with as much money to have a pet in their home. So far, it worked great. Many new prospects readily pay the $50 pet fee as opposed to paying a large deposit.

I've always done a one time deposit, but I can see real value in a smaller fee and a monthly charge.

This is a great question! My community changed our pet rent policy early this year and I believe it has been a complete success. Before the new policy, we would charge a $200.00 pet deposit and monthly pet rent of $10.00. The pet deposit was 1/2 refundable. The new policy was to charge a one-time $50.00 pet fee and a monthly pet rent of $25.00. We found that this was much easier for our new residents to pay and helped us to become a more "pet friendly" community. On the other hand, our pet rent revenue actually increase. If you do the numbers, it works out to your benefit. We never really had any issues with pet damage because we've also limited the size of the pet. (25lbs full grown) I'm curious to see how this would work for you should you implement it!

I'm going to pull the other side of the discussion here and vote that I prefer the 1x non-refundable fee. I have a hard time keeping a straight face when the industry says they're pet friendly and charges pet rent. As a pet owner, I truly screen communities for just how pet friendly they really are. I expect and am completely ok with a fee, even non-refundable. But pet rent... nope. As a community manager, I get better feedcback when i can tell people that they'll pay a 1x fee for their pets and that's it. However, my residents also know that i play hardball when it comes to illegal pets (whether not registered or breed restricted).
I completely understand the revenue aspect of it and agree on that standpoint, but when it comes to customer service, i prefer the minority vote on this one.

The revenue is not as great a concern to me as the damages. It is not that unusual for damages to exceed the deposit amount.

This discussion has begun to yield some interesting information. It clearly has the potential to morph into a very interesting discussion of appropriateness. I am, therefore going to start another thread entitled, "Pet Deposits, Pet Fees, and Pet Rent: Appropriate or Inappropriate?" Look for it today. In the meantime, I'm still interesting in hearing from a broad audience on the original subject.

Tara and Charles...you both raise great questions. I do feel that it is somewhat hypocritical to advertise a community as "pet-friendly" when you charge pet rent. I would be one for all together eliminating the monthly pet rent, but definitely charging a deposit. Makes perfect sense to me. When it comes to pet damages, I feel that it would also have much to do with what types of pet and the size of pets. Since we've implemented the breed restriction and weight restriction, we've noticed a sharp decrease in pet damage.

There are some dog breeds we do not allow, but the restriction has been more for the safety of others. In my experience though the size of the pet hasn't impacted the damages that have occurred. I would say most pets have caused minimal damage. On occasion though the damage is substantial. I've seen stair balustrades and posts used as scratching posts among other things.

I understand that some managers also interview the pets.

Great topic! My company charges a one time fee of $300 per pet. We allow payment plans for the fee(s), too. We require a photo of the pet (most residents LOVE to share photos of their furry family members), proof of shots and spaying or neutering and declawing of cats. We have some size and breed restrictions, too. Responsible pet owners are happy to comply, including not allowing their pets off leash outside, including cats. The biggest issue we deal with is seeing cats roam the community. Personally, I cannot imagine opening a door and just letting a cat (or dog) out to wander for the day or night!

All,

I've started a new topic in the "Accounting & Admin" forum entitled, "Pet Deposits, Pet Fees, and Pet Rent: Appropriate or Inappropriate?" I began it with the below, copy-pasted from it. Please shift over to the new topic when responding to the prompt. Otherwise, if you'd care to respond to the original question posed under, "Cats: One-time fee or monthly rent" please stay here.

Thank you.

Stephan



I'd like to open a discussion of the appropriateness or inappropriateness of pet deposits, pet fees, and pet rent.

To get things started here are few realities associated with pets and the rental property space they might occupy and share.

- Some renters and would-be renters have a pet(s).

- It may not be possible to rent an apartment (leading to lost rent revenue) that has a history of pet occupancy (allergies to pet dander, odors, physical damage, etc).

- Location depending there is some level (X) of demand for rental accommodations that allow pets.

- It is reasonable to expect a rental property owner to view having a pet a privilege.

- It is reasonable to expect some type of wear and tear directly associated with having a pet in a rental property.

- Dogs and cats are consumers of resources.

- Rental properties are a business, hopefully having sustainability as a goal and realizing that its responsibility lies with stakeholders (i.e., anyone influenced, either, directly or indirectly, by its actions.

- There are social benefits and social costs associated with pets. Some of these benefits and costs accrue to the pet owner, some of them accrue to the rental property ownership, and some of them accrue to other stakeholders, such as neighbors and future renters.

In view of the above and other numerous considerations that I've undoubtedly failed to mention what is your take on the appropriateness or inappropriateness of refundable pet deposits, non-refundable pet fees, and pet rent monthly or otherwise?

Wow. My landlord charges a $1500 deposit for any pet. O.o

Our company charges a $500.00 deposit for cats and $200.00 for dogs. There is also pet rent of $25.00 per animal per month. Most of the residents do not mind paying the fees.

How much damage can a cat really do? Let’s be honest, it’s dogs that cause all of the damage. Any fee for cats is gouging in my opinion.

Cats can start marking like crazy, unfortunately. And once it starts, then any new animals in the apartment will potentially smell that and then mark themselves, creating a pretty horrible cycle. They also tend to damage blinds pretty easily. I've had several cats, and although they are lovable furballs, they can be a huge PITA.