Pet friendly rentals: 9 ways to prepare for the new laws

We are a nation of animal lovers, with over half of UK adults owning a pet and nearly a third owning at least one dog. When it comes to renters, Battersea research has found that 76% of tenants either currently own a pet or aspire to take one on in the future. Yet there is a shortage of pet friendly rentals. Less than one in ten rental properties currently listed on the market are pet friendly - Zoopla lists just seven per cent of properties as suitable for pets on its portal.

Although most pet owners look after their pets responsibly, most landlords currently prefer not to let to pets because of the potential damage they can cause. They are understandably worried about being unable to recoup the cost of any repairs and associated delays before the property can be re-let. As a result, 78% of pet owners have had trouble finding a pet friendly home, according to a Dogs Trust survey.

The Renters Rights’ Bill, which is expected to be introduced later this year, aims to address this shortage of pet friendly rentals. Landlords will no longer be able to ‘unreasonably’ refuse tenants’ requests to keep a pet and will need to have a good reason if they are to refuse such a request. What does this mean for landlords? In this article, NRLA insurance partner, Total Landlord, explains how the law will change once the Bill comes into force, and how pet damage protection insurance and other measures can help landlords protect their properties from the risks of renting to tenants with pets.

The Renters’ Rights Bill gives tenants the right to request permission from the landlord to keep a pet. They must submit a written request including a description of the pet. Landlords will need to respond within 28 days and will not be able to turn down the request without good reason. The tenant will be able to challenge unfair decisions, through the new Private Rented Sector Ombudsman or they could take the case to court.

The Government will provide guidance to landlords and tenants to support decisions, but it will always be reasonable for a landlord to refuse a request when their superior landlord (the owner of a property who has granted a lease to an 'immediate landlord') prohibits pets or in leasehold properties when it is prohibited by the landlord’s headlease. Other reasons that could be valid include:

• The property is unsuitable for the pet, for example if the property is too small for a large pet
• In the case of HMOs, other tenants object to the request
• Other tenants have a pet allergy

The Government guidance currently states that: “Landlords will be required to fully consider all requests on a case-by-case basis. Due to the diversity of landlords, tenants, and properties in the private rented sector, it would not be possible to legislate for every situation where a landlord would or would not be able to ‘reasonably’ refuse a pet.”

One of the reasons landlords worry about letting to tenants with pets is the cost of damage to their property. The cap on tenancy deposits in England and Wales of five weeks’ rent (for tenancies up to £50,000 annual rent), and a ban on charging tenant fees that was brought in by the Tenant Fees Act 2019, put many landlords in England off accepting tenants with pets. Scotland introduced additional deposits for tenants keeping pets, allowing landlords to demand up to a maximum of two months’ total deposit (to include the pet damage portion).

The Renters’ Rights Bill initially proposed to address the negative impact the cap on tenancy deposits has had on pets in lets by amending the Tenant Fees Act so that landlords could require tenants to take out pet damage insurance themselves or reimburse the landlord for costs. But this was reversed under a last-minute amendment to the Renters’ Right Bill, to the dismay of landlord and tenant groups alike. Following this U-turn, amendment 53A proposes to allow a ‘pet deposit’ of up to three weeks’ rent, but it remains to be seen whether this will pass. What we do know is that tenants will still be able to request to keep a pet, and landlords will still be expected to accept tenants with pets, unless there is good reason not to. But they will also need to foot the bill for any damage. So, landlords will still need to have pet damage protection insurance, they just won’t be able to require their tenants to pay for it.

When the Renters’ Rights Bill becomes law, provided the pet is suitable, in the majority of cases landlords will have no alternative but to consent to tenants keeping a pet. So, how should landlords prepare? Fortunately, there are lots of things you can do to welcome your tenants’ furry friends and minimise the detrimental impact of pet damage on your rental property. Here are nine essential steps for landlords to prepare for pet friendly rentals.

Many landlords worry about the additional wear and tear that pets can cause. And while most pets cause minimal problems, the reality is that some landlords have suffered extensive damage that cost well in excess of the maximum tenancy deposit to put right. Pet damage protection insurance provides an additional layer of security to safeguard landlords’ properties and income against exposure to the extra risks of pets in lets.

What is pet damage protection? 

Pet damage protection is a type of insurance that helps protect your property against damage caused by your tenants’ pets, offering peace of mind so you can confidently welcome pets without worrying about the potential financial implications.

Does landlord insurance cover pet damage? 

Specific pet damage insurance is currently uncommon in the market and most landlord insurance policies do not cover damage caused by tenants’ pets. But the insurance industry is well known for innovating when faced with new challenges and risks, and Total Landlord will soon be launching a new pet damage insurance product designed to align with industry standards and regulatory requirements. Pet damage protection will be available as an extension to our award winning landlord insurance policies for new and existing customers, giving peace of mind to landlords, who will need to allow pets once the new laws come into force. If you are an existing customer, fill out this form so we can contact you to add pet damage protection to your current policy. If you are a new customer, register your interest here.

Benefits of Total Landlord's pet damage protection insurance

Total Landlord’s pet damage protection insurance complies with FCA regulations, guaranteeing consumer protection and transparency in pricing. It adheres to best practices within the insurance sector, offering clear policy terms, fair claims processing, and structured oversight to mitigate potential misuse or overcharging. By meeting these standards, the product provides both landlords and tenants with a reliable and equitable solution to managing pet-related damages, designed to complement deposit protection. If you’re not already a Total Landlord customer, now is a great time to get a quote, as we are offering our best ever rates.

What does Total Landlord's pet damage protection insurance cover? 

Total Landlord’s pet damage protection insurance provides up to £2,500 per policy period to cover loss or damage to buildings and contents (if insured) caused by pets. The policy will be available for residential premises that have up to three pets and covers a range of pet-related damages, with claims conditional on landlords holding professional inventories/condition reports and claims being identified by agreement with the tenant, a dispute resolution decision by a government authorised tenancy deposit scheme or a court order. Landlords wanting to take advantage of this unique insurance coverage, are required to have taken a traditional security deposit in accordance with the Tenant Fees Act and protected it with a formal tenancy deposit protection scheme. Please note, Total Landlord Insurance’s pet damage extension will not be available to landlords who do not take a security deposit or who utilise a deposit replacement product or similar.

Unlike most pet damage policies, Total Landlord’s product will provide cover for both one off accidental events during the tenancy as well as gradual wear and tear caused by pet damage throughout the tenancy. For example, you would be covered by a dog or cat scratching at a carpet over time, as well as by damage caused to the carpet in a single incident. The policy would not cover wear and tear due to landlord negligence, poor maintenance by the landlord, poor living conditions or unhygienic living practices.

Total Landlord’s pet damage protection insurance does not discriminate against pet type. The pet must be a domestic or tamed animal owned by the tenant and kept indoors at the premises, but pet details are only required at claims stage.

How much will pet damage protection insurance cost? 

Pet damage protection will cost £134.40 per year including insurance premium tax, which equates to just over £11.20 per month, thereby maximising affordability. And because landlords purchase the policy, rather than the tenant, they are guaranteed access to the claims process. There are several advantages to the landlord having control over the insurance policy:

• If the tenant takes out a policy, the landlord will need to scrutinise the policy (or several policies if they own a number of properties) to see if they are suitable or contain unacceptable exclusions
• The policy may be invalidated if the tenant fails to disclose relevant information or makes false statements to insurer
• Landlords will not be able to require insurance costs to be paid by the tenant, but if the tenant has voluntarily agreed to pay the costs and is responsible for paying the premiums, the landlord would be unsighted if the payments are not made or cover lapses
• Not all tenants request permission to keep a pet and in most cases, damage is only evident at the end of the tenancy
• The insurer would pay the tenant, making recovery of the costs of damage more difficult for the landlord

As insurance costs are tax-deductible against rental income for landlords, the policy is a financially viable solution given that landlords will need to pay for the policy themselves, rather than passing the costs onto the tenant.

What will Total Landlord's pet damage protection insurance NOT cover? 

Landlord insurance policies are designed to put landlords and their properties back in the position they were in before a loss or damage occurred. Insurance is not intended to be a maintenance policy, especially where control over the loss or damage is the responsibility of the tenants. Pet damage insurance is no different and there are certain exclusions and conditions that landlords need to be aware of for the cover to be effective. 

• Tenancies where the tenants keep more than three pets at the residential premises, whether full or part time
• Tenants who breed pets or animals as a living
• Damage caused to gardens, landscaping and fences
• General wear and tear to the property not attributable to domestic pets
• General pet odours
• Routine cleaning costs stated in the tenancy agreement
• Injury to the tenant, third parties and guests, and their property
• Breaches of general policy terms and conditions

Currently, Total Landlord is not offering the pet damage extension to landlords who do not take a traditional security deposit or who use deposit replacement products.  

The majority of landlords, agents and tenants recognise that taking a deposit is best practice – 96.4% of tenants said they give their landlord or agent a deposit in Total Property’s 2024 survey. As explained in mydeposits’ NRLA article, 5 reasons why landlords should take a deposit, tenancy deposits are a tried and tested means of protecting both the landlord’s financial interest and the property itself. The main reason for taking a deposit is as a safeguard against damage, which will be more important than ever once the new regulations come into force. In fact, deposit protection provider, mydeposits, has already observed an increase in claims involving pets, with such claims increasing by 140% from 2023 to 2024.

Of course, it remains to be seen whether volumes will rise significantly once the new legislation comes into force. But at mydeposits, resolution payments involving pets are 48% higher than those without. It is likely that the Renters’ Rights Bill will further increase the need for deposit protection and other types of insurance such as pet damage protection and legal expenses and rent protection.

“The Bill’s focus on protecting tenants’ rights will heighten the importance of compliance with deposit protection laws and landlords will need to make sure they follow the new regulations. With tenants being given more power to challenge issues such as rent increases or property conditions deposit disputes may become more frequent, especially as tenants become more aware of their rights under the new legal framework.”

Tim Frome, Head of Government Schemes, including mydeposits, at HFIS

Total Landlord’s pet damage protection insurance is designed to complement deposit protection. At mydeposits, while the average deposit is around £1,000, the average claim for a release involving a pet is £1,520. And in 35% of disputes involving pet damage the claim amount is greater than the deposit protected, highlighting the need for an extra layer of protection in addition to the deposit. Security deposits should always be the first port of call for pet related claims and Total Landlord’s pet damage extension is designed to pick up any additional costs once the security deposit has been exhausted.

It’s vital that the conditions of the tenancy agreement are crystal clear. Including an additional pet clause will help set out expectations for both landlords and tenants. The pet clause should:

• Include details of the pet (animal type, breed and name of the pet)
• Clearly explain the tenant’s responsibilities such as specific cleaning requirements, garden maintenance relating to the pet and how they should deal with any damage caused by the pet
• State that the tenant should not leave a pet alone in a property for more than a specified number of hours (e.g. four hours) and if the pet should be contained during this time
• Make it clear that any damage caused by the pet will be deemed as damage and not fair wear and tear to avoid issues requiring negotiation over deposit deductions at the end of the tenancy or any claims against pet damage protection insurance. Most policies do not cover wear and tear, although Total Landlord’s does

It’s a good idea to consider each pet and pet owner on a case-by-case basis. By gathering as much information about the pet as possible, you will be able to decide whether the tenant is a responsible pet owner, and whether the pet is suitable for your particular property. You can ask your prospective tenant for a ‘pet CV’ which answers the following questions, adapting them depending on the type of pet:

• What is the pet(s) breed (include whether it is hypoallergenic, large, small and confirmation that it is not listed under the Dangerous Wild Animals Act or Dangerous Dogs Act)?
• How long have they had the pet(s)?
• Are they able to provide a pet reference from a previous landlord?
• Is the pet registered with a local vet?
• Has the pet been vaccinated and treated for fleas and worms?
• Has the pet been neutered and is it microchipped?
• Will the pet be left at home alone for long periods of time?
• Who will care for the pet in an emergency or while the tenant is away?
• How often is the pet exercised? In the case of a dog, does the owner use a dog walker or sitter when they are not at home?
• Has the pet been trained (including toilet trained)?
• How does the pet get along with other people?

The tenant may be able to provide a pet reference from a previous landlord if they have rented with their pet before. If not, you can include questions about the tenant’s pet(s) when carrying out tenant referencing. The pet reference should include:

• Details of the pet that the tenant lived with in their previous property
• The length of time the tenant lived in the previous property with their pet
• Whether the previous landlord considered the tenant to be a responsible pet owner
• Whether the pet was well behaved and caused any damage to the property
• Whether the pet caused complaints from the neighbours

If you can, it’s a good idea to meet the pet with their owner. This way, you can interact with the pet and see how they behave for yourself. This also gives the prospective tenant the chance to provide reassurance that they are a responsible pet owner and will make the effort to minimise and rectify any damage caused by the pet during the tenancy.

Once you’ve agreed to accept the pet, as with all tenancies it’s important that a thorough, tenant signed, professional inventory, condition report and check-in report is carried out. This will establish clarity and transparency from the outset of the tenancy, providing a good foundation for both you and your pet-owning tenant. Whether you are instructing a third-party, independent inventory company or a letting agent, or using industry standard inventory software, pay particular attention to the condition of common problem areas for pets such as flooring, skirting boards, paintwork and the lawn. Include dated photographs, and don’t forget to record any odours in the property. The inventory and check-in report will be your evidence at the end of tenancy if the condition of the property has changed and you need to make a claim against the tenant’s deposit or pet damage protection insurance. Our ultimate guide to a landlord inventory contains more guidance, including a useful inventory checklist.

Most landlord insurance policies require regular inspections to be carried out during the tenancy. They are also a great way to make sure your tenant is looking after the property, and for both you and your tenant to deal with any issues, such as pet scratches and odours, before they escalate. Find out more in our ultimate guide to inspecting your property.

As with all tenancies, good communication is key. Encourage your tenant to discuss any issues with you rather than attempting to hide any damage, or even potentially breaching the tenancy agreement by sneaking in an additional pet. You can also download our landlord and tenant checklists which include top tips to share with your tenants to help them make their home comfortable for their pet and protect it from damage.

As the Renters’ Rights Bill moves closer to becoming law, landlords must prepare for a shift in rental practices. While concerns about pet related damage are understandable, particularly now that landlords will need to foot the bill, allowing pets can offer significant benefits. Pet friendly rentals attract a larger pool of tenants, reduce vacancy periods, and often result in longer tenancies, as pet owners are less likely to move frequently. By following these nine essential steps, implementing clear tenancy agreements, conducting regular inspections, and taking out pet damage protection insurance, landlords can welcome responsible pet owners confidently while safeguarding their property.

"The upcoming changes in rental laws mean that landlords will need to adapt to a more pet-friendly market. Total Landlord's pet damage protection insurance provides both landlords and tenants with an affordable, reliable solution to managing pet-related damages, so that landlords can confidently welcome tenants with pets while protecting their investment. This type of cover not only reduces financial risk but also helps landlords attract responsible, long-term tenants in an increasingly competitive market."

Eddie Hooker, CEO at Total Landlord

With the right precautions in place, renting to tenants with pets doesn’t have to be a risk - it can be an opportunity. If you are an existing customer, fill out this form so we can contact you to add pet damage protection to your current policy. If you are a new customer, register your interest here.

You may also be interested to read our recent article, ‘The landlord’s lifeline: Legal and rent protection in the age of the Renters’ Rights Bill’ and learn more about our legal expenses and rent protection insurance.