Pet Policies That Actually Increase Your Tenant Pool (and Revenue)

Published January 9, 2026

70% of renters have pets. Banning pets eliminates 70% of your applicant pool. Here's how to create pet policies that protect your property and boost revenue.

If you own rental property in the South Bay and your policy is "no pets," you are eliminating roughly 70% of your potential tenant pool. The figure comes from rental industry surveys, and it matches what we see every week filling vacancies across the South Bay.

I understand the hesitation. Nobody wants scratched hardwood or a backyard that smells like a dog park. But the financial case for a well structured pet policy is overwhelming, and after 15 years of managing pet friendly properties alongside pet restricted ones, I can show you exactly how the numbers work.

ESAs Are Not Pets Under the Law

Before we talk strategy, let me address the elephant in the room. Emotional support animals are not pets under California and federal law. If a tenant provides documentation from a licensed healthcare provider, you must accept the animal regardless of your pet policy. You cannot charge pet rent or a pet deposit for an ESA. You cannot impose breed or weight restrictions.

This means that even if you have a strict no pet policy, you will end up with animals in your units. The difference is that with a formal pet policy, you have screening, documentation, financial protections, and clear expectations. Without one, you have ESAs with none of those safeguards and regular pets sneaking in under the radar.

AB 12 Changed the Deposit Game

California's AB 12 capped total security deposits at one month's rent regardless of whether the unit is furnished or unfurnished. This means your security deposit and pet deposit combined cannot exceed one month's rent. For a $2,500 unit, your total deposit protection is $2,500, period.

This is why pet rent has become the primary financial tool for pet policies. Unlike deposits, monthly pet rent is not capped by AB 12. It provides ongoing revenue that accumulates over the life of the tenancy, building a financial cushion that typically exceeds what a one time deposit would have provided.

The Pet Rent Play

Standard pet rent in the South Bay ranges from $25 to $75 per pet per month. We typically recommend $50 per pet as a starting point. It is high enough to be meaningful but low enough that pet owners accept it without pushback.

On a unit with two pets at $50 each, that is $100 per month or $1,200 per year in additional revenue. Over a three year tenancy, that is $3,600 in extra income from a single unit. Multiply that across a portfolio and it becomes a meaningful line item.

The Breed Restriction Question

Breed restrictions are primarily driven by insurance companies, not landlords. Most property insurance policies exclude coverage for certain breeds, commonly pit bulls, Rottweilers, German shepherds, Dobermans, and a few others. Before setting your breed policy, check with your insurance carrier because violations could void your coverage.

That said, I will tell you from experience that individual behavior matters far more than breed. I have seen a golden retriever cause $4,500 in damage to a Hermosa Beach unit. Chewed through door frames, destroyed blinds, scratched every door in the apartment. Meanwhile, some of our best behaved animal tenants have been breeds that appear on restricted lists. The screening process matters more than a blanket breed ban.

Third Party Pet Screening

We use a third party pet screening service that costs the tenant $25 and provides a pet resume including vaccination records, behavioral history, and a risk score. This shifts the screening cost to the tenant and gives us documented, objective criteria for acceptance decisions. It also creates a paper trail that protects the owner if there is ever a dispute about pet related damage.

Case Study: 16 Unit Redondo Beach Conversion

Last year we worked with an owner of a 16 unit building in Redondo Beach who had maintained a strict no pet policy for over a decade. Vacancy rates were consistently higher than comparable buildings, and the applicant pool was noticeably thinner.

We proposed a structured pet friendly conversion with screening, pet agreements, insurance requirements, and pet rent at $50 per pet per month. Within six months, 9 of the 16 units had pets. Here is what happened to the numbers.

Pet rent revenue hit $5,400 per year across those nine units. Vacancy savings were even bigger. The building went from averaging 6 weeks of vacancy per turnover to under 3 weeks because the applicant pool more than doubled. We estimated the vacancy savings at roughly $8,000 per year. Combined, that is $13,400 in annual net benefit.

Pet related damage over the first two years totaled $1,800 across all units, which was fully covered by security deposits. The owner's net gain was substantial, and she told me she wished she had made the switch five years earlier.

Our Pet Policy Framework

Here is the structure we recommend and implement for our managed properties.

Every pet goes through third party screening before approval. A pet agreement addendum is added to the lease with specific rules about noise, waste cleanup, and leash requirements in common areas. We require tenants with pets to carry renter's insurance with a minimum of $100,000 in liability coverage. We set a limit of two pets per unit and a 50 pound weight limit for buildings with close quarters or shared walls. Pet rent is set between $25 and $75 per pet based on the property type and market.

When to Restrict

There are legitimate situations where restricting pets makes sense. Units with original hardwood floors that would be expensive to refinish. Luxury properties with high end finishes where even minor damage is costly. Buildings with very small shared courtyards or limited outdoor space where waste management becomes a real problem.

Even in these cases, I recommend allowing cats and small dogs under 25 pounds rather than a blanket ban. The revenue and tenant pool benefits still apply, and the damage risk from small animals is minimal.

What a Pet Policy Is Really For

A pet policy exists to maximize revenue and minimize vacancy in a market where the majority of renters are pet owners. A well structured policy with proper screening, insurance requirements, and pet rent will generate more income than it costs in damage every single time.

If you are still running a no pet policy and wondering why your vacancy rates are higher than the building next door, this might be the reason. We help owners set up and manage pet friendly conversions all the time at Schofield Properties. Happy to walk you through what it would look like for your building.

Topics: pet policy, property management, landlord tips, California rental law, pet rent

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Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.