For many homes, pets are considered family. In fact, roughly 58% of renters have a furry companion that is non-negotiable when it comes to finding a place to live. In the dynamic landscape of property management, it’s becoming an increasingly popular decision to cater to these renters and make pet-friendly rentals more openly available. While there are advantages to this pet-friendly approach, there are also considerations that landlords and property managers must take to establish realistic boundaries and a harmonious relationship with the tenant.

Where the demand stands heading into 2026:

• Renters who own a pet: about 58%, up from 46% in 2019 (Zillow, 2025)
• U.S. households with at least one pet: roughly 94 million (up from 82 million in 2023)
• Renters who report trouble finding pet-friendly housing: about 72%
• Rentals with no restrictive pet policies: only around 8%

Benefits of Pet-Friendly Rentals

Stand Out with a Positive Property Image

Allowing your tenants to live alongside their companions fosters a sense of compassion, kindness, and consideration and reflects a positive image of your property.

Expand Your Tenant Pool

As mentioned above, roughly 58% of renters have a pet making for a massive pool of untapped rental candidates. Finding a suitable rental accommodation for themselves and their pets is a top priority for most of these renters, and opening up your doors to this demographic greatly expands your potential for finding a responsible and reliable tenant.

Increase Tenant Loyalty

Many pet owners are looking for a longer-term lease to provide their pets with stability, and once they find a pet-friendly home they are more likely to stick around and resign the lease. Most pet owners are also considered to be reliable, responsible, and committed making them attractive candidates to live in your property.

Heightened Rental Demand

In a time when pet-friendly rentals are on the rise, enabling a pet-friendly home can give you a competitive edge over the market. This increases the inquiries you’ll receive, boosts the likelihood for tenants to resign their lease, and decreases the amount of time your rental sits vacant meaning a more consistent rental income.

Increase Rental Rates and Deposit

Allowing pets opens the opportunity to charge more in rent, pet deposits, or a nonrefundable monthly pet fee. Most pet owners are willing to pay a premium for a home that allows their furry friends to live alongside them comfortably.

What landlords are commonly charging for pets in 2026:

• Monthly pet rent: commonly $25–$75 per pet
• Average pet rent, dog: about $50/month; cat: about $35/month
• Refundable pet deposit: often $200–$300 per pet
• One-time non-refundable pet fee: roughly $150–$300

Considerations for Landlords and Property Managers

Establish a Clear and Comprehensive Pet Policy

This can include the size of pets, quantity, and guidelines to ensure responsible pet ownership and respectful boundaries. While some landlords outline breed restrictions, in this day and age, it is strongly recommended that you take the time to have a screening process with the tenant and their dog to gauge the temperament. So many times we are quick to write off dogs under a blanket statement such as “aggressive breed”, but end up dismissing loving pet owners with well-behaved dogs. This step can make for a more accepting and harmonious community.

Require Pet Deposits and Fees

Pet deposits are necessary to act as a safety net for any damages or accidents that may take place during residency. 

How California’s Deposit Cap Changes This

Just about every California landlord has heard by now that the deposit rules changed, and when it comes to pets that change is a real one. Since Assembly Bill 12 took effect in July of 2024, the total security deposit is capped at one month’s rent, and a pet deposit has to fit inside that one month rather than sit on top of it. Not saying the pet deposit disappears, but it no longer stacks the way it used to. Smaller owners do get a little more room here, since a natural person who owns no more than two properties totaling four units can still ask for up to two months. At Utopia Management we work the pet portion into that single deposit now, and there are plenty of ways to safeguard your home and investment while staying inside the cap.

• Standard security deposit cap: one month’s rent (AB 12, effective July 1, 2024)
• Pet deposit: counted inside that one-month cap, not added on top
• Small-landlord exception: up to two months for a natural person owning ≤2 properties / ≤4 units
• Ongoing monthly pet rent: still allowed, since it is not part of the deposit

Require Pet Liability Insurance

This is an additional layer of protection that you can require your tenants to invest in and can cover any property damage or incidents that may take place involving their pet.

What About Service Animals and Emotional Support Animals?

While some landlords lump every animal together, in this day and age, it is strongly recommended that you take the time to separate a true pet from an assistance animal. Under the federal Fair Housing Act, and California’s own fair housing law, this group includes service animals and emotional support animals, which are simply not counted as pets at all. So many times we are quick to apply the pet deposit, the pet fee, and the pet rent across the board, but end up charging them on an animal the law says we cannot charge for, even in a building that otherwise does not allow pets. What you can still ask for is the documentation the law allows, such as a licensed provider’s letter for an emotional support animal, and the tenant stays responsible for any damage the animal actually causes.

• Service animals and ESAs: legally not pets under the FHA and California’s FEHA
• Pet deposit, pet fee, and pet rent: cannot be charged for them
• No-pet buildings: must still make a reasonable accommodation
• Documentation: a licensed provider’s letter is allowed for an ESA (California AB 468)
• Tenant liability: they remain responsible for any damage the animal causes

Schedule Regular Inspections

Regular inspections can help maintain the property’s condition and ensure that tenants are adhering to and respecting rules and guidelines laid out in the pet policy. Abandoned animals after move-out should also be identified and handled.

Fostering a pet-friendly rental has many benefits, and with the proper considerations and precautions you can ensure the longevity of both your home and your tenants.

Frequently Asked Questions

Should landlords allow pets in a rental?

Allowing pets is worth considering, since roughly 58% of renters have a pet and that makes for a massive pool of untapped rental candidates. Opening up your doors to this demographic greatly expands your potential for finding a responsible and reliable tenant, and once pet owners find a pet-friendly home they are more likely to stick around and resign the lease.

What is the difference between a pet deposit and pet rent under AB 12?

Under Assembly Bill 12, which took effect in July of 2024, the total security deposit is capped at one month’s rent, and a pet deposit has to fit inside that one month rather than sit on top of it. Monthly pet rent is different: it is still allowed, since it is not part of the deposit.

Can landlords charge pet fees for emotional support animals?

No, landlords cannot charge pet fees for emotional support animals. Under the federal Fair Housing Act and California’s own fair housing law, service animals and emotional support animals are simply not counted as pets at all, so the pet deposit, the pet fee, and the pet rent cannot be charged for them. What you can still ask for is a licensed provider’s letter.