‘Pets in lets’ has long been part of the lettings lexicon, but physically allowing domestic animals in rental properties has remained a peripheral activity. Now, with the Renters’ Rights Bill progressing through the House of Lords, the industry is gearing up to welcome more feline friends and canine companions.

Very little scene setting is required. Pets have been viewed as a nuisance. Then the Tenant Fees Act capped deposits at either 5 or 6 weeks’ rent, making it more unappealing than ever to accept domesticated animals in lets. And who can blame landlords?

Appetite for destruction

I posed a question on social media asking people to describe their experiences of pet damage in the home. A Border Terrier that chewed through a wall? Doors ruined due to separation anxiety? Carpet and underlay ripped to bits? Many stories were ruefully recounted.

Damage wasn’t confined to fixtures and fittings either. There was a budgie who regularly stripped wallpaper, a house rabbit who nibbled through six phone lines and a Dalmatian who redecorated a kitchen with chili when he dragged a pot off the hob. And the urban myth of the robot vacuum trundling an unsavoury doggy deposit around the house? I found real truth in the story!

Damage blown out of proportion?

Perhaps I just keep terrible company, as Dr Jen Harris at The Deposit Scheme (TDS) says it recorded just 23 pet-related disputes in a recent three-month period, representing a very small number of cases it handles.

“When disputes arise, they’re due to issues like frayed carpets, odours, stains and, occasionally, a chewed door frame,” says Dr Jen. “Severe damage is thankfully rare and the cost to fix pet damage is easily covered by the tenant’s deposit.”

Dr Jen also addresses some of the concerns around the validity of pet damage claims, such as the citing of wear and tear or labouring on the ‘accidental’ nature of an incident versus malicious damage.

“A dog chewing a wall or a cat scratching doors wouldn’t be categorised as ‘malicious’ as pets have no intent but this clearly falls outside normal wear and tear. It’s similar to a child drawing on the walls; the tenant remains responsible, even if there’s no intention behind it. Furthermore, leaving pets unattended wouldn’t impact a TDS decision: we focus on how the property’s condition compares to when the tenant moved in.”

Preparing for more pet disputes

Maybe Alexandra Coghlan-Forbes at The Deposit Protection Service (The DPS) moves in the same circles as me as she anticipates a rise in deposit disputes involving pets because tenants will be more likely to keep dogs and cats thanks to the Renters’ Rights Bill.

“The DPS’s existing, free-to-use dispute resolution service already considers claims by landlords and counter claims by tenants involving pets,” says Alexandra, “but we’ll be providing our experienced adjudicators with full training on the changes contained in the finalised Bill.”

Bark worse than its bite

Perhaps pet damage is not the financial nightmare it’s portrayed to be. A 2024 University of Huddersfield report, commissioned by Battersea Dogs and Cats Home, found there was a financial benefit to landlords who welcomed pets, earning them up to £3,800.

On average, the value of pet-related damage was £300 per tenancy.”

The Financial Impact of Pet Ownership in Rental Properties is analysis Heidi Shackell at The Lettings Hub calls on when speaking about dogs, damage and deposits. The research also states that pet damage was more of a perceived concern, and that pets do not, in fact, cause significant costs to landlords.

“On average, the value of pet-related damage was £300 per tenancy,” says Heidi. “In contrast, landlords who didn’t rent to pet owners reported an average cost of £775 for non-pet related damages.” Surprising sums.

The value of any damage is crucial when it comes to deposits and deductions. Heidi returns to the deposit cap and acknowledges the amount isn’t always enough to cover the rectification of pet damage and perhaps flea fumigation, on top of other deductions such as rent arrears.

If the average value of pet damage really is £300, then a properly lodged deposit will cover costs, especially given the average deposit is around £1,431 (calculated using Zoopla’s latest average monthly rent). But what about more severe destruction? This is where deposit replacement insurance is flexing.

Extra protection available

“Deposit alternatives are ideal for the new pets in lets rules because of the additional protection they offer landlords,” comments Ben Grech at Reposit. His company is one of the suppliers whose protection exceeds the deposit cap.

“Reposit offers landlords 8 weeks’ worth of equivalent rent cover, so 3 weeks – or 60% – more protection that the typical 5 weeks’ protection offered by a traditional deposit,” adds Ben.

Zero Deposit, another deposit replacement specialist, is working hard to reassure landlords that should they have to make a claim for pet damage, it’ll be handled fairly and promptly.

“The Zero Deposit Guarantee has always covered pet-related damage within its terms and now we have introduced an AI claims experience designed to pay landlords within five days of submitting the claim,” comments Sam Reynolds, Chief Executive at Zero Deposit.

“This is far faster than the traditional end-of-tenancy experience and ensures landlords can get their properties back onto the market faster, including when there’s pet-related damage.”

Extra emphasis on condition reports

Sam was not alone in reinforcing the importance of inventories and the check-out process once the Renters’ Rights Bill becomes an Act – especially if there is to be an increase in pet-related disputes.

Pet damage is usually very easy to prove, although landlords will need to show the state of the property before, using an inventory, and after, using check out.”

“Pet damage is usually very easy to prove, although landlords will need to show the state of the property before, using an inventory, and after, using check out,” adds Sam. “With any end-of-tenancy dispute, clear photographs, commentary in the form of a structured report and a clear explanation of what’s being claimed are key to success.”

“Sometimes, it’s more difficult to prove things like a flea infestation. Our advice would be to ensure it is documented in the checkout or a specialist report is obtained to support the fact an infestation or damage has occurred,” concludes Sam.

Of course, the Renters’ Rights Bill stipulates that landlords will be able to require pet insurance to cover any damage to their property – a product that can be leaned on if deposit deductions do not cover the total expense of remedial work.

The Lettings Hub and the TDS are among multiple suppliers launching pet-specific insurance policies and their introduction should focus minds on the small print. As well as tenancy agreements having to reflect the incoming reforms, agents should be meticulous when it comes to clauses and definitions.

Detail that protects deposits

Points of consideration include what constitutes a domestic animal, how many pets should be allowed in a property at once, what type of damage should be covered by the tenant or a policy, whether any cover includes fumigation or damage by visiting animals, and whether pet references are mandatory,

On the last point, Heidi feels there is a future market for pet CVs as much as pet insurance – supporting documents that allow landlords and letting agents to assess the suitability of each pet. It’s not a new notion but in 2025, it feels more plausible as an idea. As such, The Lettings Hub will be introducing a new product that will make it easier for tenants to capture information about their pet and their owner credentials when they use the platform.

The jury is still out on whether we’ll make a smooth transition to pets in lets, or whether there will be landlord resistance and tenant challenges to unfair decisions. What is clear is choosing the correct deposit protection scheme or replacement supplier will become more important.