Blog: Pets and deposits - a landlord's guide
With more and more households taking on pets to help them through the pandemic, Sandy Bastin, Head of Tenancy Deposit Scheme (TDS) Adjudication Services talks you through what you need to know when it comes to taking on tenants with pets – and what to do if things go wrong.
With the massive spike in demand for pets during 2020, landlords are increasingly being asked whether they will allow animals in their properties.
Here at Tenancy Deposit Scheme (TDS) we recently surveyed 1,500 landlords, asking them to share their experiences to help us develop practical advice when it comes to avoiding pet related disputes.
Before the Tenant Fees Act 2019 came into force in England in June 2019, our research showed one in three landlords asked for an additional ‘pet deposit’, with more than a quarter charging higher rent to tenants with pets.
This is perhaps unsurprising, with more than half those responding saying pets had caused damage to their properties in the past.
However, the introduction of the legislation effectively banned additional charges for tenants with pets – with the new act in England capping tenancy deposits at five weeks’ rent where the annual rent is under £50,000 and six weeks rent if above and limiting what fees could be charged.
Despite this many landlords were, and are, still open to accepting tenants with pets – provided they know they are protected and that any damage caused by the pets will be covered by the deposit.
There are a number of ways to do this.
Firstly, make sure the tenancy agreement is clear when it comes to your expectations as to how the property is to be kept and returned at the end of the tenancy.
Pet Clauses
Whilst the Tenant Fees Act legislation prohibits certain fees and increased deposits, landlords can insert a ‘pet clause’ into the tenancy agreement which outlines the tenants responsibilities and potentially acts as additional cover for landlords.
This allows you to gain as much information as possible about the tenants pet(s) to assess how likely they are to cause damage.
A pet clause can include:
- The breed and name of the animal with details of a nominated person to take care of the animal in case of emergency.
- A statement making it clear that no animals are to be kept in the property if listed under the Dangerous Wild Animals Act or Dangerous Dogs Act.
- A requirement that pets kept at the property must be vaccinated and regularly treated for fleas and worms (if appropriate).
- A rule that the tenant must not leave a dog alone in a property for more than four hours and that it does not cause damage when unsupervised.
Other top tips for avoiding pet problems during tenancies include scheduling regular property checks. These should include:
- Start of tenancy checks – The check-in/inventory report should provide both an inventory of contents and a report on the condition of the property and its contents, at the start of the tenancy. Photographs should be included in these reports, however it is important to note that they should be used in addition to a written report and not as a substitute. These dated photographs and a comprehensive check-in report can be used for comparison at the end of the tenancy should any damage occur. You could also request a reference on the pet from a previous landlord or even a vet.
- Mid-tenancy property checks – Regular property checks can help landlords identify damage that has been caused by pets. When conducting these checks, photographs should be taken and used as evidence for any disputes that could arise at the end of a tenancy.
- End of tenancy checks – A timely and detailed check-out report can be cross-referenced with the check-in/inventory report to highlight any changes in the property’s condition or cleanliness. For example, all items on the inventory list should be in the same condition at check-out as they were at check-in (allowing only for fair wear and tear).
Case study: Real pet problems
Although not the most common issue, TDS have dealt with pet related disputes. For example, in one case, a tenant agreed that they did not have permission to keep a cat, but argued that there was no damage and no cleaning or pest treatment was needed at the end of the tenancy. They had cleaned the property throughout and produced invoices in support. The landlord claimed that the cat had torn the lino in the kitchen and that flea treatment was needed to the lounge carpet.
The adjudicator firstly had to consider the check-out report, which made no reference to the damaged lino. Although the adjudicator accepted that the tenant was in breach of the tenancy agreement by keeping a cat in the property, as there was no evidence provided to show that the tenant sought the permission of the landlord to keep a pet, the adjudicator could only make an award if they were satisfied, based on the evidence, that the property was left in a worse condition at the end of the tenancy than it was at the beginning. The evidence did not allow the adjudicator to reach that conclusion.
A key pointer to take away from this case:
It is important to have a well worded tenancy agreement so that all parties are clear on their responsibilities. It would have been in the landlords interests to include in the agreement a specially negotiated clause to state that the tenant agreed to the cost of flea treatment, where they would still be liable for damaged caused if they were refused permission to keep a pet but did so anyway. Such clauses are subject to the test of reasonableness.
But what if, despite all your best efforts and checks a pet does cause damage to your rental?
The first thing you need to do if you want to recover money from the tenancy deposit to cover pet damage is to talk to the tenant. Communication can be the key to avoiding costly and unnecessary court hearings.
Before you make a claim, make sure the tenant’s obligations are clearly detailed in your tenancy agreement, as you will need to show there has been a breach.
If it can be proven that significant damage has been caused e.g. scratch marks or carpet stains, you will be able to make a damage claim provided there is clear evidence to show it was caused by either the tenant or their pet.
More information
If you are unsure what your rights are as a landlord or would like to know more about how an adjudicator makes a decision about tenancy dispute claims, the TDS information lounge is filled with useful case studies, guides and FAQs on tenancy deposit protection. NRLA members can access these resources for free and can also access discounted deposit protection rates with Tenancy Deposit Scheme (TDS), within their NRLA account. Learn more here: NRLA member rates.
TDS customers can view further insights from the ‘pets in properties’ survey in the summer edition of Letterbox magazine here. If you would like to learn more about the topic you can also watch the TDS Webinar ‘Pets in Properties?’ and take a look at real life case studies here.
