Should you allow pets in your rental property? It’s a common question among landlords concerned about property damage, liability, and additional wear and tear.
At Rentals America, we generally recommend allowing pets—with reasonable restrictions. Based on our experience managing thousands of rental homes, we believe attracting more prospective renters and encouraging longer tenancies generally outweigh the risks when appropriate safeguards are in place.
Here’s why we recommend a pet-friendly approach and how landlords can protect their investment.
Why Allowing Pets Makes Financial Sense
Attract a Larger Pool of Prospective Renters
Pets matter to a significant portion of renters. Zillow’s 2025 Consumer Housing Trends Report found that 59% of renter households have at least one pet, and 73% of renters in single-family detached homes consider allowing pets essential when deciding whether to rent a property.
These national survey findings illustrate why pet policies deserve attention. A no-pets rule can remove a substantial number of otherwise qualified applicants before they even consider your home.
Allowing pets expands your potential renter pool without requiring you to compromise your resident qualification standards. Applicants still need to meet your income, credit, rental history, and other screening requirements.
Reduce Vacancy and Lost Rental Income
A larger applicant pool can help a rental property lease faster. In its July 2025 analysis of 2024 rental listings, Zillow reported that pet-friendly listings in the Phoenix metro typically found a renter 11 days sooner than listings that did not allow pets.
For a home renting for $2,000 per month, 11 days of vacancy represent approximately $733 in lost rent, using a 30-day month. This illustrates how a longer vacancy can affect rental income.
The comparison does not prove that allowing pets alone caused faster leasing, and individual results vary. Price, condition, location, and marketing still matter. However, reducing vacancy by even a few days can provide a meaningful financial benefit.
Encourage Longer Tenancies
Pet owners may be more inclined to remain in a home that accommodates their household. Finding another suitable rental can be difficult, especially with larger dogs or multiple animals.
A resident who feels settled has one less reason to move. Longer tenancies can mean fewer vacancies, reduced turnover costs, and less frequent leasing expenses. We view this as a practical potential benefit, rather than a guarantee that every pet owner will stay longer.
What About the Risk of Pet Damage?
The most common concern we hear from owners is damage. Pets can scratch flooring and doors, stain carpets, damage landscaping, or create odors requiring additional treatment. Repairs can be costly when damage reaches flooring or subfloors.
These concerns are legitimate and should be weighed against vacancy and turnover costs. A blanket prohibition avoids some pet-related risks, but it also limits your pool of prospective residents.
In our experience, how well a resident cares for a property often has more to do with the responsibility of the pet owner than the animal itself. Responsible residents train and supervise their pets, maintain the home, and address problems before they become serious.
That is why we emphasize thorough resident screening, clear lease requirements, and appropriate pet restrictions.
How We Recommend Protecting Your Rental Property
Require Refundable Pet Deposits
We generally recommend refundable pet deposits rather than nonrefundable pet fees. A refundable deposit gives residents a financial incentive to prevent damage and leave the property in good condition.
With a nonrefundable fee, residents surrender the money regardless of how well they care for the home. We believe a refundable deposit provides a stronger incentive for responsible property care.
If a pet causes damage, the available refundable security deposits can generally be applied to legitimate pet-related damage—not just the amount labeled a pet deposit, subject to Arizona law and the lease terms. Owners should ensure the lease describes permitted deductions clearly and document actual damage beyond normal wear and tear.
Arizona’s security deposit statute generally caps required security, however labeled, including prepaid rent, at one and one-half months’ rent. Refundable pet deposits count toward that total. Deposits are not automatic revenue; deductions and refunds must follow the law and the lease.
Establish Reasonable Pet Restrictions
Allowing pets does not mean accepting every animal. At Rentals America, our ordinary pet policies generally include:
Breed restrictions to help manage liability and insurance concerns.
No puppies or kittens, which can present greater damage risks during training.
Restrictions on other animal types, with approvals generally focused on commonly accepted household pets.
Limits on the number of pets approved for the property.
Size or weight limits, when appropriate for the home or required by the HOA or insurance provider.
Consideration of applicable HOA and insurance requirements.
Clear approval requirements help prevent misunderstandings about which animals may occupy the home. Lease terms should address resident responsibility for damage, waste removal, supervision, and nuisance behavior.
Apply ordinary pet policies consistently. Qualifying assistance animals require a separate reasonable accommodation review, as explained below.
Additional Pet Damage Protection
Rentals America provides an additional layer of protection through our Resident Benefits Package: up to $1,000 in pet damage coverage.
This protection applies to leases enrolled in the RBP program while Rentals America actively manages the property, and is subject to applicable terms, conditions, limits, and exclusions.
The coverage complements resident screening, refundable deposits, lease requirements, and inspections. It does not eliminate every risk, but it helps make allowing pets a more practical choice for owners.
Document Property Condition
Detailed move-in and move-out inspections are important for every rental, particularly homes allowing pets. Photographs and written records help distinguish new damage from preexisting conditions and support legitimate deposit deductions.
Pay particular attention to flooring, doors, baseboards, landscaping, and areas where odors or stains may develop. Clear records help owners and residents understand what changed during the tenancy.
Should Landlords Charge Monthly Pet Rent?
Some landlords charge monthly pet rent in addition to a refundable deposit. Pet rent can generate income, but the total housing cost still needs to be competitive.
Consider whether the additional revenue justifies potentially limiting interest or extending vacancy. In many cases, attracting a qualified resident promptly and retaining them longer is more valuable than a modest monthly pet charge. Any pet charges should be clearly disclosed before the resident commits to the home.
What About Service Animals and Emotional Support Animals?
Landlords must distinguish ordinary pets from qualifying assistance animals. Under applicable fair housing laws, residents with disabilities may be entitled to reasonable accommodations involving service animals or emotional support animals, even at a property with a no-pets policy.
Qualifying assistance animals are not pets for purposes of ordinary pet restrictions and charges. Housing providers generally cannot impose pet deposits, pet fees, or pet rent for them, although residents remain responsible for damage their animals cause.
Evaluate requests individually under applicable fair housing requirements rather than automatically applying ordinary breed or animal restrictions. See HUD’s assistance animal guidance for more information.
When Might a No-Pets Policy Make Sense?
HOA limitations, insurance restrictions, or specific property concerns may justify restricting ordinary pets. Owners should consider the actual constraints and whether a narrower policy could manage the concern while preserving more rental demand.
Those considerations do not replace the separate obligations that may apply to assistance animal requests.
Our Recommendation Is to Allow Pets With Safeguards
For most rental homes, we recommend allowing pets with reasonable restrictions and appropriate safeguards. Pet-friendly leasing appeals to more renters and may help reduce vacancy and support longer tenancies.
Our approach combines qualified residents, refundable deposits, clear pet policies, condition documentation, and additional coverage. The goal is to improve rental performance while protecting the property’s long-term value.
For more guidance on preparing, leasing, and managing your investment, explore our Phoenix Landlord Playbook.
Rentals America provides professional property management throughout the Phoenix metropolitan area, helping owners attract qualified residents, reduce vacancy, and protect their investments.
