Pets in Rental Properties: Should Landlords Say Yes or No?
Renting to tenants with pets has always been a contentious issue for landlords. From scratched floors to barking complaints, there’s a long list of potential concerns. But with New Zealand’s Residential Tenancies Amendment Bill 2024 set to modernise rental laws—particularly around pet ownership—landlords will need to adapt.
Once the legislation takes effect in late 2025, blanket “no pets” policies will no longer be acceptable. Instead, landlords must consider each request and only decline based on reasonable grounds. At the same time, tenants will be held liable for all pet-related damage, and landlords will have the right to charge a pet bond of up to two weeks' rent.
So what does this mean in practice? Let’s weigh up the pros and cons of renting to tenants with pets, and how to navigate this new chapter in property management.
What’s Changing with the New Pet Laws?
Until now, landlords could include a “no pets” clause in tenancy agreements and decline any request without giving a reason. Under the new rules, this will no longer be allowed.
Instead:
Tenants must request permission to keep a pet.
Landlords must consider the request and can only decline for specific reasons (e.g. property unsuitability, body corporate rules, or safety concerns).
If landlords do refuse, they must provide a written explanation, which tenants can challenge at the Tenancy Tribunal.
Landlords can set reasonable conditions (e.g. require professional carpet cleaning, restrain the pet during inspections, or charge a pet bond).
A pet bond of up to two weeks' rent is permitted but must be included within the total four-week bond cap.
The Benefits of Allowing Pets in Your Investment Property
It’s easy to focus on the risks, but there are strong reasons landlords are warming to pet-friendly policies—especially as housing expectations evolve.
1. Longer Tenancies
Pet-owning tenants are often more settled and less inclined to move frequently. If they’ve found a place where their pets are welcome, they’re likely to stay longer, reducing your turnover and vacancy costs.
2. Broader Tenant Pool
Restricting your rental to “no pets” cuts out a significant portion of the market. Families, professionals, and long-term renters with pets often struggle to find suitable homes. By opening your doors to pet owners, you can attract a more diverse and reliable set of applicants.
3. Higher Rents
Pet-friendly properties are in demand, and tenants may be willing to pay a premium. In competitive rental markets, this can mean higher returns with minimal investment.
4. Stronger Tenant-Landlord Relationships
Tenants with pets often feel a greater sense of home and responsibility. This emotional investment can lead to better care of the property and more open communication with landlords.
The Risks Landlords Must Consider
While there are real benefits, it’s important to acknowledge the risks that come with pets in rental properties—and how to minimise them.
1. Property Damage
Pets can cause damage beyond normal wear and tear: scratched doors, chewed skirting boards, urine-stained carpet. Fortunately, under the new law, tenants are liable for all careless and accidental pet-related damage, and landlords can claim repair costs through both the bond and landlord insurance.
2. Odours and Allergens
Pet smells and allergens can linger, making the home less appealing to future tenants—especially those with allergies. To manage this, consider requiring professional carpet and upholstery cleaning at the end of a tenancy.
3. Neighbour Disruption
Noise complaints are common with dogs, particularly in apartments or multi-unit dwellings. You may also need to navigate body corporate rules that restrict pets. In such cases, landlords can legitimately decline the request.
4. Breach of Rules or Conditions
A key risk is tenants failing to follow agreed pet conditions. But landlords can mitigate this by clearly outlining expectations in the tenancy agreement—including pet supervision, cleaning responsibilities, and how breaches will be addressed.
What Counts as a “Reasonable Refusal”?
You’ll still have the right to say no—but only when there’s a valid reason. According to the upcoming law, the following are acceptable grounds for declining a pet request:
Property size and suitability: A large dog in a one-bedroom apartment might be impractical.
Fencing and containment: Lack of secure outdoor space could be a concern.
Health and safety: Allergies or previous incidents involving dangerous pets are legitimate reasons.
Body corporate restrictions: Rules that prohibit pets must be respected.
History of non-compliance: Past pet-related complaints or damages from the same tenant can justify a refusal.
What Is a Pet Bond, and How Will It Work?
A pet bond is a new option introduced by the legislation. It provides a buffer for landlords and works just like a regular bond—but solely for pet-related damage.
Amount: Up to two weeks’ rent.
Total Bond Cap: The combined total of all bonds (including the pet bond) cannot exceed four weeks’ rent.
Refundable: If there’s no damage, the pet bond must be refunded at the end of the tenancy.
Landlords should include this in the tenancy agreement and specify what it covers to avoid disputes later.
Should You Allow Pets in Your Rental Property?
There’s no one-size-fits-all answer. It depends on your risk tolerance, the type of property, and the quality of your tenant.
If you own a low-maintenance standalone home with durable finishes and secure fencing, saying yes to pets could bring significant benefits. On the other hand, an apartment with shared walls, no outdoor space, and body corporate restrictions may not be suitable.
The key is to assess each request fairly and communicate clearly with your tenants. Set expectations, include specific clauses in the tenancy agreement, and keep up with regular inspections to ensure everything stays on track.
A Changing Landscape for Tenants and Landlords
The Residential Tenancies Amendment Bill 2024 is more than just a law change—it reflects a shift in how we view pet ownership in rentals. As pets are increasingly recognised as part of the family, landlords will need to rethink their approach and find the balance between protecting their investment and accommodating responsible tenants.
With careful planning, clear agreements, and an understanding of the law, landlords can confidently rent to pet owners while minimising risk. And as demand for pet-friendly housing continues to grow, being open to paws on your property might just give you the edge.
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