Pet Deposit vs Pet Fee vs Pet Rent: Landlord Guide (2025)

Learn the difference between pet deposits, pet fees, and pet rent for landlords. This guide covers legalities, market rates, and best practices for pet-friendly rentals.

If you've ever wondered "what is a pet deposit?", “should I charge a pet fee?”, or "how much is a pet deposit supposed to be?", then you're not alone. These terms get tossed around interchangeably, but they actually mean very different things for your bottom line and your lease agreements.

Here's the deal: a pet deposit is typically refundable, a pet fee is not, and pet rent is that monthly charge that provides ongoing income. Many landlords use a combination of these, and yes, it is legal to charge pet rent and pet deposit together in most places. 

Whether you're drafting your first pet policy or refining an existing one, this guide breaks down everything you need to know about pet fees, deposits, and rent—including what's fair, what's legal, and how to protect your investment while staying competitive.

Quick Answer: Pet Deposit vs Pet Fee vs Pet Rent

Before we dive deep, here's the cliff notes version for landlords:

  • Pet Deposit: Refundable security deposit (typically $200-$500) that covers pet-related damage.
  • Pet Fee: One-time, non-refundable charge (usually $150-$300) to offset general wear and tear from pets.
  • Pet Rent: Monthly charge ($25-$75 per pet) added to regular rent, providing steady income throughout the lease term.

Think of it this way: the pet deposit is your security bond, the pet fee is an upfront cost-recovery charge, and pet rent is ongoing compensation for the increased risk and maintenance associated with housing pets.

Pro tip: Use Landlord Studio to track all pet-related charges separately, collect deposits and rent online, and maintain clear records for each property. This makes accounting at tax time infinitely easier and protects you if disputes arise.

Why Pet-Friendly Rentals Are a Smart Business Move

The rental market has undergone a massive shift regarding pets. Not long ago, "no pets" was the default policy for most landlords. Today? Nearly 70% of U.S. households own a pet, and landlords who refuse them are dramatically shrinking their potential tenant pool.

Allowing pets can expand the tenant pool, reduce vacancy periods, and even encourage longer lease terms, since pet owners often struggle to find suitable housing.

  • Faster vacancy fill rates: Pet-friendly properties attract significantly more applicants
  • Longer tenant retention: Pet owners struggle to find housing and are more likely to renew leases
  • Additional income streams: Pet rent provides monthly recurring revenue beyond base rent
  • Competitive advantage: In markets with limited pet-friendly options, you can command premium pricing

Still, pets can bring additional risks. Scratched flooring, stained carpets, or noise complaints may create disputes if expectations are not set in advance. According to property management data, pet-related damage claims average $200-$600 per tenancy.

That's where pet deposits, pet fees, and pet rent come in. They're designed to balance the expanded tenant pool with property protection. 

For more guidance on creating a comprehensive approach, check out our article on How To Set The Best Landlord Pet Policy.

What is a Pet Deposit, Pet Fee, and Pet Rent?

Let's break down each charge so you can make informed decisions for your rental properties.

What is a Pet Deposit?

A pet deposit is a refundable security deposit specifically earmarked for pet-related damage. It functions exactly like a standard security deposit but addresses pet-specific concerns like scratched doors, soiled carpets, or damaged landscaping.

How much is the average pet deposit? Most landlords charge between $200 and $500, though the exact pet deposit amount varies by location, property type, and local market conditions. 

Important: State laws differ on whether a pet deposit must be kept separate from the standard security deposit, and limits often apply to the total amount a landlord may charge.

What is Pet Rent?

Pet rent is an additional monthly charge added to the tenant's base rent. Unlike a deposit, this money isn't refundable; it's recurring income that compensates you for the ongoing costs and risks associated with housing animals.

The monthly pet fee for rental properties typically ranges from $25 to $75 per pet per month, often depending on the type of animal, property size, and local rental market conditions. 

Many landlords use pet rent because it provides predictable, recurring revenue that makes the increased property damage risk to their rental a little more palatable. 

Is pet rent becoming standard practice? According to the National Apartment Association, approximately 72% of rental properties that allow pets now charge monthly pet rent, up from 58% in 2018.

What is a Pet Fee?

A pet fee is a one-time, non-refundable charge collected when a tenant moves in with a pet. The average pet fee for rental properties falls between $150 and $300, though larger properties or multiple pets may justify higher amounts.

Unlike a pet deposit, tenants won't see this money again—even if their pet causes zero damage. The pet fee is designed to offset general wear and tear or cleaning costs associated with animals: deep-cleaning carpets, repainting to eliminate odors, extra landscaping maintenance, or professional deodorizing treatments.

When to Use a Pet Fee

Pet fees work particularly well in states with strict security deposit caps. If you're already at the maximum allowable deposit, a non-refundable pet fee may be an option to provide you with additional protection without violating state limits.

Note: Make sure to store your pet policy documents, including fee structures and signed pet addendums, securely in Landlord Studio's document storage. This ensures you always have proof of agreed-upon terms if disputes arise.

Pet Rent, Pet Fees, Pet Deposits: How Much Should You Charge? (2025 Market Rates)

Setting competitive yet protective pet charges requires understanding current market rates. Here's what landlords are charging across the U.S.:

Average Pet Deposit: $200-$500. In high-cost markets like San Francisco or New York, expect $400-$600. In secondary markets, $200-$300 is more common. Single-family homes often command higher deposits than apartments due to increased yard maintenance concerns.

Average Pet Fee for Rental: $150-$300 One-time fees vary by property class. Luxury apartments might charge $300-$500, while smaller landlords typically stay between $150-$250. Many landlords charge per pet: one cat might be $150, but two cats could be $250-$300 total.

Monthly Pet Fee for Rental (Pet Rent): $25-$75 per pet. Urban markets with high demand see $50-$75 per month. Suburban properties typically charge $25-$50. Some landlords vary pet rent by animal size—$30 for cats or small dogs, $50-$75 for large breeds.

Pet Fee vs Pet Deposit vs Pet Rent: Strategic Differences

Understanding these distinctions helps you choose the right approach for your portfolio.

Are Pet Deposits Refundable?

Yes! And that's the defining characteristic that separates deposits from fees. This refundability actually works in your favor, encouraging tenants to maintain the property well.

Pet fees and pet rent, on the other hand, are not refundable. That revenue is yours immediately and doesn't create future obligations.

Is it Legal to Charge Pet Rent and Pet Deposit Together?

This is one of the most common landlord questions: "Is it legal to charge pet rent and pet deposit together?"

The answer in most states is yes. They serve different purposes. Pet rent is considered part of the monthly rent (not a deposit), while a pet deposit functions as security. So, charging both isn't legally problematic.

However, watch out for state-specific deposit caps. Many states limit total security deposits to 1-2 months' rent. If your state caps deposits at two months' rent, and you're already collecting a full security deposit, adding a pet deposit might push you over the legal limit.

According to state security deposit laws, these states have notable restrictions:

  • California: 2 months' rent for unfurnished, 3 for furnished (pet deposit must fit within this cap)
  • New York: No statutory limit, but must be "reasonable"
  • Nevada: 3 months' rent total
  • Illinois: No statewide cap, but Chicago limits to 1.5 months for non-pet units

Some landlords work around caps by charging higher pet fees (non-refundable, not subject to deposit limits) combined with modest pet rent.

Always verify your local regulations before implementing pet charges. Consider consulting with a local real estate attorney or using resources like your state's landlord-tenant handbook to ensure compliance.

Legal Compliance When Charging Pet Fees

Along with ensuring you stay compliant with your state's security deposit laws, as mentioned above, there are a few other legal considerations to take into account if you plan to implement pet fees for your rental property(s).

Non-Refundable Fee Disclosure Requirements

Most states allow non-refundable pet fees, but there's a critical requirement: explicit written disclosure. You cannot collect a "pet deposit" and later claim it was non-refundable. Courts consistently rule against landlords who fail to clearly specify refundability.

Your lease must explicitly state:

  • The exact amount of each charge
  • Which charges are refundable and which aren't
  • What refundable deposits can be used for
  • Timeline and process for deposit returns

Fair Housing Act and Service Animals

This is where many landlords make expensive mistakes. Under the federal Fair Housing Act, you cannot charge pet fees, pet rent, or pet deposits for:

  • Service animals – Dogs (and miniature horses) trained to perform specific tasks for people with disabilities
  • Emotional support animals (ESAs) – Animals prescribed by healthcare professionals to provide therapeutic benefit

These animals aren't considered "pets" under federal law—they're necessary accommodations for people with disabilities. Charging pet-related fees for service animals or ESAs is a Fair Housing violation that can result in:

  • Fines up to $16,000 for first violations
  • Substantially higher penalties for repeat violations
  • Legal fees if tenants file discrimination complaints
  • Damage to your reputation and business

What you CAN do:

  • Require documentation for ESAs (letter from licensed healthcare provider)
  • Hold tenants financially responsible for actual damage caused by any animal
  • Enforce reasonable rules about animal behavior

What you CANNOT do:

  • Charge any pet deposits, fees, or rent for service/support animals
  • Require service animals to be certified or registered
  • Ask about the nature of a tenant's disability

For detailed guidance, read our article on The Fair Housing Act and Emotional Support Animals.

Deposit Accounting and Return Procedures

When collecting refundable pet deposits, follow these best practices:

  1. Conduct thorough move-in inspections – Document property condition with photos and written reports. You can download a free property inspection template here.
  2. Photograph everything – Especially areas vulnerable to pet damage (carpets, doors, baseboards, yards)
  3. Repeat at move-out – Compare conditions side-by-side
  4. Provide itemized deductions – Include receipts or estimates for repairs
  5. Return promptly – Follow your state's timeline (typically 14-30 days)

Failure to follow proper procedures can result in:

  • Forfeiting your right to retain any deposit
  • Penalties equal to 2-3x the deposit amount in some states
  • Attorney fees if tenants sue successfully

Pet Fee Best Practices For Landlords

Here's how to structure pet charges effectively for your rental portfolio.

  1. Clearly Define Terms in the Lease

Landlords should explicitly state whether a charge is a pet deposit, pet fee, or pet rent, and specify refundability, due dates, and permissible uses. Ambiguity often leads to disputes at move-out, so clear lease language protects both parties.

  1. Comply With Local and State Laws

Before setting fees or deposits, review local regulations regarding deposit limits, refundable charges, and service animal exemptions. Following legal guidelines prevents costly litigation and ensures tenant trust.

  1. Consider Market Conditions

Evaluate local demand for pet-friendly housing. In competitive rental markets, moderate fees and deposits may attract tenants without deterring applications. Conversely, higher charges may be justified in markets with strong demand and limited pet-friendly options.

  1. Inspect and Document

Conduct thorough move-in and move-out inspections, documenting the condition of the unit. Photographs and written notes provide evidence in case of damage disputes, particularly when a pet deposit is involved.

  1. Communicate With Tenants

Maintain open lines of communication about expectations for pet behavior and property care. Tenants who understand their responsibilities are more likely to respect the property and comply with rules, reducing potential damage.

  1. Flexible Approaches

Consider offering options, such as a refundable pet deposit for responsible tenants or a combination of smaller fees and monthly rent. Flexibility can make a property more appealing without sacrificing financial protection.

Maximizing ROI on Pet-Friendly Properties

Making your properties pet-friendly isn't just about allowing pets—it's about doing it profitably.

Calculate True Costs

Determine your actual pet-related expenses:

  • Turnover costs: Deep cleaning, deodorizing, minor repairs (average $300-600)
  • Ongoing maintenance: More frequent filter changes, landscaping, common area cleaning
  • Insurance: Some landlords increase liability coverage for pet properties
  • Vacancy differential: How much faster do pet-friendly units fill?
  • Retention value: What's the cost of turnover you avoid when pet owners renew?

Set your pet charges to exceed these costs while remaining market-competitive.

Attract Quality Pet-Owning Tenants

Not all pet owners are created equal. Attract responsible tenants by:

  • Marketing your pet policy prominently – Don't bury it in fine print

  • Highlighting pet amenities – Fenced yards, nearby parks, pet washing stations

  • Screening effectively:


    • Request pet references from previous landlords
    • Consider "pet resumes" with photos, vet records, training certificates
    • Check for breed restrictions required by your insurance carrier
    • Interview the pet if possible (seriously—you can gauge temperament)
  • Setting clear expectations – Comprehensive pet addendum from day one

Quality tenants appreciate clear policies and are willing to pay fair charges for the privilege of living with their pets.

Consider Pet Amenities

Strategic upgrades can justify premium pricing:

  • Durable flooring – Luxury vinyl plank or sealed concrete instead of carpet
  • Fenced yards – Major selling point for dog owners
  • Pet doors – Convenient for tenants, reduces indoor accidents
  • Outdoor pet washing stations – Keeps mess outside
  • Designated pet areas – Especially valuable in multi-family properties

Track the ROI of these improvements using Landlord Studio's expense tracking and compare rents achieved on upgraded vs. standard units.

Build Pet-Friendly Branding

If you manage multiple units, consider positioning yourself as a pet-friendly landlord:

  • Create a pet policy page on your website
  • Showcase pet-friendly features in listings
  • Use pet-related keywords in marketing materials
  • Join local pet communities – Partner with rescues, trainers, or pet shops
  • Collect testimonials from happy pet-owning tenants

This attracts your ideal tenant demographic and can reduce marketing costs by generating referrals.

The Bottom Line: Strategic Pet Policies Build Better Businesses

Understanding pet deposits, pet fees, and pet rent isn't just about protecting your properties—it's about building a more profitable, competitive rental business.

Each option serves a distinct purpose: pet fees offer one-time compensation, pet rent provides ongoing coverage, and a pet deposit safeguards against actual damage while remaining refundable.

For landlords, the choice depends on legal limits, market conditions, and tenant expectations. Clear communication and transparency are essential to maintaining trust and avoiding disputes. By balancing financial protection with fairness, property owners can attract responsible pet-owning tenants and manage their properties effectively.

Landlord Studio can help you:

  • Collect rent and deposits online with automated reminders
  • Track pet-related charges separately across your portfolio
  • Store lease agreements and pet addendums securely
  • Document property conditions with inspection templates
  • Generate financial reports showing pet policy ROI
  • Manage maintenance issues before they become costly problems

By implementing strategic pet charges, maintaining thorough documentation, and using modern property management tools, you can confidently welcome pet-owning tenants while protecting your investment and maximizing returns.

Pet Deposit vs Pet Fee vs Pet Rent: FAQs

What is the difference between a pet deposit and a pet fee?

A pet deposit is refundable money held to cover pet-related damage. If the pet doesn't damage the property beyond normal wear and tear, you return it to the tenant after move-out inspection. A pet fee is a one-time, non-refundable charge paid upfront to offset general turnover costs associated with pet tenancies. You keep pet fees regardless of property condition.

How much is a pet deposit?

Pet deposit amounts typically range from $200 to $500, often calculated as 25-50% of monthly rent. The exact pet deposit amount depends on your location, property type, state deposit limits, and local market conditions. Higher-value properties and single-family homes usually justify deposits at the higher end of this range.

Are pet deposits refundable?

Yes, pet deposits are refundable as long as the tenant's pet doesn't cause damage beyond normal wear and tear. After conducting a thorough move-out inspection, you deduct legitimate repair costs and return the remaining balance within your state's required timeline (typically 14-30 days). You must provide itemized deductions with receipts or estimates.

What is the average pet fee for rental properties?

The average pet fee for rental properties ranges from $150 to $300 as a one-time, non-refundable charge. Luxury apartments may charge $300-$500, while smaller properties typically stay between $100-$200. Many landlords charge per pet, so multiple animals result in higher total fees.

Is it legal to charge pet rent and pet deposit together?

Yes, it is legal to charge pet rent and pet deposit together in most states. Pet rent is considered part of monthly rent, while a pet deposit functions as a security deposit. Since they serve different purposes, charging both isn't problematic. However, ensure your total deposits (including pet deposit) don't exceed your state's maximum security deposit limits.

What is the monthly pet fee for rental properties?

The monthly pet fee for rental properties—commonly called pet rent—typically ranges from $25 to $75 per pet. Urban markets with high demand charge $50-$75, while suburban properties average $25-$50. This recurring charge compensates landlords for ongoing wear and tear, increased maintenance, and additional risk associated with housing pets.

Can landlords charge pet fees, pet rent, or pet deposits for service animals?

No. Under the federal Fair Housing Act, landlords cannot charge pet fees, pet rent, or pet deposits for service animals or emotional support animals (ESAs). These animals are considered necessary accommodations for people with disabilities, not pets. Charging these fees violates Fair Housing law and can result in significant fines and legal liability.

Can pet deposits be used for normal wear and tear?

No. Pet deposits should only be used for damage beyond normal wear and tear. Routine cleaning, minor scuffs, or expected deterioration aren't legitimate deductions. Only charge for actual damage like scratched flooring, torn screens, pet odors requiring professional treatment, or destroyed landscaping. Document everything thoroughly to justify deductions.

How do I track pet deposits and fees across multiple properties?

Use property management software like Landlord Studio to track pet deposits, fees, and rent separately across your entire portfolio. The platform allows you to set up custom charge types, automate recurring pet rent collection, maintain clear records of refundable vs. non-refundable amounts, and generate financial reports showing pet-related income and expenses by property.

What should I include in a pet addendum to my lease?

A comprehensive pet addendum should include: specific pet details (species, breed, size, weight), all financial charges with clear refundability status, behavioral expectations and rules, damage liability clauses, inspection rights, consequences for violations, and acknowledgment that service animals are exempt from pet charges. Store signed addendums in Landlord Studio's document management system for easy access.

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