The Secret to Filling Units Faster AND Hundreds of Dollars in Extra Cash Flow is…Dogs

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A dog is not just man’s best friend; it’s turning out to be a landlord’s, too. Pet-friendly rentals garner considerably more cash flow than no-pet rentals, according to a study from RentCafe. 

According to proprietary stats, the website states that U.S. landlords can charge an average nonrefundable pet fee of $315 on top of the average pet rent of $36/month. With rental margins tightening due to higher expenses and rising mortgage rates, saying yes to pets could not only yield higher rents but also lead to renewed leases and happier residents.

In a High-Stress World, Pets Are an Anxiety Buster

As of 2024, about 66% of U.S. households owned a pet, a sharp rise over the last 40 years, according to Forbes Advisor. It’s likely no coincidence that nearly 6 in 10 renters now have a pet, according to Zillow, up from 46% before the pandemic. The website says that almost half of renters said they passed on a rental because pets were not allowed.

“Allowing pets can be a strategic edge for landlords competing to fill units,” said Emily McDonald, a rental trends expert at Zillow, explaining that pet-friendly listings attract more interest in today’s market.

Zillow Trends found that listings that allow pets tend to lease up to eight days faster than those that do not. In New York City, generally one of the least pet-friendly cities, apartments that welcome furry friends attract pet parents about 26 days faster than those that don’t.

A 2025 report from the Michelson Found Animals Foundation, a philanthropic organization, found that pet-inclusive policies reduce tenant turnover. The report’s authors note that communities that embrace pet-inclusive strategies generally see residents staying up to 21% longer, lowering leasing and make-ready costs for landlords. 

“Property owners who respond to this trend can expect stronger tenant loyalty, reduced vacancies, and a significant edge in the competitive rental market,” Ross Barker, director of the Pet Inclusive Housing Initiative at Michelson Found Animals Foundation, said in a statement.

The cost of pet ownership is nothing to bark at. Americans spent roughly $147 billion on pets in 2023, according to Reuters, including food and treats, veterinary care, insurance, and supplies. 

For owners who cannot keep up with costs, pet care can be a significant source of financial stress. However, it also illustrates the demand for pet-friendly residences with modest pet fees.

What a Pet Package Looks Like

According to RentCafe data, a standard pet package includes:

Approximately $35 in monthly pet rent.

Refundable deposits over $300.

Nonrefundable fees that average $315.

Dog Breeds, Insurance, and Liability

The RentCafe report shows that dog breeds, insurance, and liability are among the concerns of many landlords. To address this, most rentals have targeted restrictions that limit the types of dogs allowed based on size and “aggressive” characteristics.

Although dogs are predominantly the main pets tenants have, they are not the only ones. However, bans on domestic cats are rare. Rather, restrictions focus on litter-box training and vaccination requirements.

The New York Times reported that of America’s renter population, 59% of whom own pets, the majority are likely to be lower income, and for them, the additional cost of owning a pet can present financial difficulties in the housing crisis. As such, state and federal bills targeting pet fees have become an issue for housing advocates. Colorado became the first state to enact a law capping pet rent and deposits and prohibiting home insurers from imposing breed-based restrictions.

“Unless you can afford to rent in a luxury building, or absorb potentially hundreds of dollars in monthly or one-time fees, you may be forced to choose between housing and your pet,” Barker of Michelson Found Animals told the New York Times. “It’s not just an animal issue; it’s equally a human issue.”

A Contentious Issue

This, along with other similar proposals across the country, has evoked a strong response from landlord groups, concerned about the damage pets can cause to their properties and the inadequate compensation pet caps could engender.

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“There are bad people, and there are bad dogs, and our job is to screen that and make sure that we’re providing a safe environment for everyone,” Russell Lowery, executive director of the California Rental Housing Association, told Fox News in response to his state’s proposed legislation advocating for eased pet rental restrictions, which was withdrawn after considerable opposition.

Under the California proposal, landlords would have had to provide “reasonable justifications” for denying a pet.

“Chasing mom-and-pop landlords like myself—small investors like myself—out of California is not going to solve the high price of rent; it actually is going to make it worse,” landlord Ivan Blackshear told Fox News last year, before the bill was withdrawn.

It’s important for landlords to remember that, under the Fair Housing Act, landlords generally cannot charge pet fees for support animals.

Final Thoughts: Welcoming Fido Without Killing Your FICO

Landlords who want to make their rentals pet-friendly without incurring the financial setbacks that a cat-trashed or dog-demolished residency can cause should adhere to a structured, repeatable playbook. Here are some steps to take.

Create a formal written pet policy 

Such a policy standardizes the following:

Permitted type of animal

Size or weight limits

Number of pets

Required vaccinations and local registrations

RentCafe finds that landlords with such policies experience fewer disputes and insurance issues than owners with a more informal approach to tenants.

Set transparent pricing

Create a predictable set of costs that lets renters know what to expect. These should include:

A refundable pet damage deposit.

Modest monthly pet rent.

One-time nonrefundable cleaning fee.

Demand documentation

Treat pet documentation in the same way as you would pay stubs: as a requirement, not an option. It will serve both as liability protection and as behavioral screening. Standard pet documentation should include:

Proof of vaccination

Local licenses

Flea/tick treatment records

Emergency vet information

Make low-cost, high-impact property upgrades

Making your property pet-friendly can be relatively budget-friendly. Common-sense, durable design choices will help limit wear and tear and are a good idea to incorporate, whether your tenant has a pet or not. These include:

Semigloss or scrubbable paint in high-traffic areas

Vinyl plank or tile flooring

Door kickplates

Corner guards

Easy-to-clean baseboards