Property Investment

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Should I allow pets in my rental property?

More property investors allow pets in rentals ... but what's the risk?
Leah Edit 2024 09 26 014728 jevz

Author: Leah Cockroft

Business Development Manager & Opes Liaison with over 7 years of experience in Real Estate/Property Management in Auckland.

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Property investors often ask, “Should I let tenants have a pet in my rental property?”

In the past, it was often a hard "no" for landlords.

But these days, more property investors are open to the idea.

But there are pros and cons. On one side, there’s the risk of potential damage from the pet. On the other, if you allow pets, you have a larger pool of potential tenants.

At Opes Property Management, I work with tenants every day who want a home for themselves (and their pets, too). And I also see the impact this has on properties.

That’s why, in this article, you’ll get an honest analysis of whether you should allow pets in your rental. That way you can make the right decision for you.

What are the pros and cons of allowing pets in rentals?

Here’s a breakdown of the pros and cons of allowing pets in your rental:

If you allow pets in your rental, you’ll have a wider pool of tenants.

It’s estimated that 64% of Kiwi households have a pet. And 59% of people who don’t have a pet say they’d like one.

So, if you decide to allow pets, there will be more people who can rent your property.

If you only rent your property to people without pets, you’ll have a smaller pool of potential tenants. That can mean it takes longer to find a tenant, increasing your vacancy rate.

On top of that, many Kiwi families have well-cared-for pets that don’t pose a large risk to your investment.

That said, animals are unpredictable. They can cause damage. Even small cats can soil your carpets or scratch your walls.

You do have some control over the type of pet your tenant has. But, some tenants push the boundaries.

I once had a tenant who was allowed one dog. But, later, they got a second as a “mental health” companion ... for the other dog.

That’s right, the second dog was a mental health companion for the first one.

This led to a dispute in the Tenancy Tribunal. And the truth is that there are some grey areas in the tenancy legislation around pets.

Luckily, new legislation, such as pet bonds, may offer extra protection for landlords.

Can landlords say ‘no’ to pets?

If you say ‘yes’ to pets, keep in mind that there is a big difference between one cat and a rottweiler.

So if you do say ‘yes’, you can stipulate how many pets the tenant has and/or how big.

So, if they have a pet, I often ask: “How many pets do you have? What sort are they? What breed?”

Often, we’ll get them to add a photo of the pet to the tenancy application, too.

That way you know what you’re saying ‘yes’ or ‘no’ to.

An investor once asked me: What’s better, a cat or a dog [in a rental]?

And honestly, I don’t think one is necessarily "better" than the other.

Cats are smaller, but they can scratch the walls. Dogs are usually bigger, but they are usually better trained.

What happens if the pet damages the property?

The Residential Tenancies Act (RTA) outlines different rules around damage.

In simple terms, tenants are responsible for intentional or careless damage. While landlords are responsible for accidental damage.

However, the RTA can be somewhat grey on what is “accidental damage” and “fair wear and tear." This makes it open to interpretation. That’s where cases end up in the Tenancy Tribunal.

I once managed a property where a tenant's cat knocked a pot off a poorly placed shelf, breaking the stovetop.

The landlord covered the damage as it was a genuine accident.

But the tenant was held responsible when the cat did it again two weeks later. (Maybe she should have moved the pots).

A tenant might argue with you that a cat scratching the wall is fair wear and tear.

Often, the first case is considered accidental damage. So it’s the landlord's responsibility to fix it.

But, if that incident happens again, it’s up to the tenant.

Can I charge more rent if my tenant has a pet?

Many investors think they can charge more rent for pets. You can’t.

You're not going to get more rent weekly.

But if you allow pets, your annual rent will likely be more stable. You’ll have fewer vacancies. That’s because not every landlord allows pets.

So, tenants with pets tend to stay longer. That’s my experience.

Lots of families have fur-babies. So, you're ignoring a large portion of potential tenants if you choose not to allow pets.

To be fair, back in the day, you did get more money. Now, you just don't because so many people have pets.

Will pet bonds make a difference?

From May 2025, landlords can charge a “pet bond”. This is because the government is changing the Residential Tenancies Act.

This change also makes tenants liable for all pet damage beyond "fair wear and tear".

While this offers extra protection for landlords, it can also be a barrier for tenants.

On a property renting for $650 per week, the standard bond is $2,600.

Adding a pet bond on top of that brings the total to $3,900, which might be too costly for some tenants.

Should I allow pets in my rental?

Allowing pets in your rental property is no longer the taboo it once was.

I always encourage my investors to allow pets in their rentals.

Though, the pet should be appropriate for the property. So a dog wouldn’t suit most 1-bedroom apartments. But, a cat or 2 is often fine in a 2-bed townhouse.

And from my experience, you can get excellent tenants who have pets.

Of course, there's a minority with unruly pets ... but the same risk exists with tenants in general.

I reckon around 75% of our current investors allow pets.

Those who don’t usually cite concerns about space for the pet rather than fears of damage.

Leah Edit 2024 09 26 014728 jevz

Leah Cockroft

Business Development Manager & Opes Liaison with over 7 years of experience in Real Estate/Property Management in Auckland.

Leah Cockroft is the Business Development Manager at Opes Property Management in Auckland backed with over 7 years of experience in the property industry. Leah provides updated guidance to our developers to ensure they build the best tenantable product in a prime location for our client's investments along with a wealth of knowledge in Property Management.

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