The question of whether to allow pets in rental units is one that every Detroit-area landlord faces eventually. According to the American Pet Products Association (APPA), roughly 66% of U.S. households own at least one pet. That figure means a strict no-pets policy immediately eliminates the majority of your potential tenant pool. For property investors in Metro Detroit, where vacancy rates can significantly impact cash flow, well-structured pet policies offer a way to attract more tenants while protecting your properties.
This guide covers the legal, financial, and practical considerations for creating pet policies that work for Detroit rental properties.
Why Pet-Friendly Units Make Financial Sense
The math on pet-friendly rentals is straightforward. When two-thirds of households include a pet, a blanket no-pets policy shrinks your applicant pool dramatically. Tenants with pets also tend to stay longer because finding pet-friendly housing can be difficult, especially in certain Detroit neighborhoods where options are limited. Longer tenancies mean fewer turnovers, less vacancy loss, and lower costs for cleaning, marketing, and re-leasing.
Pet-friendly units also command premium pricing. Tenants are accustomed to paying extra for the privilege of keeping animals, and most accept pet rent and deposits as standard costs of renting with an animal.
The key is structuring your pet policies to capture that additional revenue while managing the real risks that come with animals in rental properties.
Pet Rent in the Detroit Market
Pet rent is a recurring monthly charge added to the base rent for tenants who keep pets. In the Metro Detroit market, pet rent typically ranges from $25 to $75 per month, depending on the type and size of the animal and the rental price point of the property. A single cat in a mid-range apartment might warrant $25 per month, while a large dog in a single-family rental could justify $50 to $75.
Unlike a pet deposit, pet rent is non-refundable. It functions as ongoing compensation for the increased wear that animals cause to a property over time. Carpet wear, minor scratches on hard floors, and general odor treatment at turnover are all costs that pet rent helps offset.
When setting pet rent, research comparable properties in your area. Charging significantly above market rates may drive away good tenants, while charging too little leaves money on the table. Many Detroit-area landlords set pet rent at $35 to $50 per month per pet, which tenants generally accept without hesitation.
Pet Deposits and Michigan’s Security Deposit Cap
Michigan’s Security Deposit Act (MCL 554.602) caps security deposits at 1.5 times the monthly rent. This cap applies to the total deposit amount collected from a tenant, including any pet deposit. A separate pet deposit is not exempt from this limit.
For example, if your monthly rent is $1,200, the maximum total security deposit you can collect is $1,800. If you charge a standard security deposit of $1,200 and want to add a $500 pet deposit, you have exceeded the legal limit by $100. Violating this cap exposes you to penalties under the Act.
This is why many Michigan landlords rely more heavily on pet rent than on pet deposits. Since pet rent is classified as rent rather than a deposit, it falls outside the security deposit cap. You can charge pet rent in addition to a full 1.5x security deposit without running afoul of the law.
Pet Fees vs. Pet Deposits: Legal Distinctions
The difference between a pet fee and a pet deposit matters under Michigan law. A pet deposit is refundable and subject to the same itemized deduction and 30-day return requirements as a standard security deposit. Any portion not used for documented pet-related damage must be returned to the tenant.
A pet fee, by contrast, is a one-time, non-refundable charge. Because it is non-refundable, it does not fall under the Security Deposit Act’s return requirements. However, you should be careful with how you characterize this charge. If a court determines that a so-called “fee” is functionally a deposit (collected as security against potential damage), it may be reclassified and subjected to deposit regulations.
The safest approach is to be transparent in your lease language. Clearly label any charge as either a refundable deposit or a non-refundable fee, and make sure the characterization matches how you actually handle the funds.
Breed Restrictions and Weight Limits
Breed restrictions are one of the most debated aspects of rental pet policies. Some landlords maintain lists of prohibited breeds perceived as aggressive. These restrictions are frequently driven by insurance requirements rather than landlord preference.
Check with your property insurance carrier before setting breed policies. Many insurers maintain their own restricted breed lists and may deny claims or cancel policies if a prohibited breed is found on the property. If your insurer restricts certain breeds, your pet policy should reflect those restrictions, and your lease should clearly state that the limitations are insurance-driven.
As an alternative to breed restrictions, some landlords implement weight limits, such as a 50-pound maximum. Weight limits can achieve some of the same risk-reduction goals without targeting specific breeds, which can be a sensitive topic for tenants. However, weight limits have their own drawbacks. A 45-pound dog can cause just as much damage as a 70-pound dog, and some smaller breeds are more prone to excessive barking than larger ones.
A more effective approach combines weight guidelines with individual animal screening. Requiring a pet interview or a reference from a previous landlord gives you better information about an animal’s behavior than breed or size alone.
Service Animals and Emotional Support Animals
Federal and state fair housing laws create important exceptions to any pet policy. Under the Fair Housing Act, landlords must provide reasonable accommodations for tenants with disabilities who require service animals or emotional support animals (ESAs). Michigan’s Elliott-Larsen Civil Rights Act provides additional protections at the state level.
The rules here are clear. You cannot charge pet rent, pet deposits, or pet fees for service animals or ESAs. You cannot apply breed restrictions, weight limits, or species restrictions to these animals. You cannot deny housing or impose different terms based on the presence of a service animal or ESA.
You can request documentation supporting the need for an ESA, typically a letter from a licensed healthcare provider. For trained service animals under the ADA, you may only ask two questions: whether the animal is required because of a disability and what task the animal has been trained to perform. You cannot request documentation of the animal’s training or certification.
Violations of fair housing laws regarding service animals and ESAs carry serious penalties, including fines, damages, and attorney fees. Make sure everyone involved in your leasing process understands these rules.
Creating a Pet Addendum
A well-drafted pet addendum should be attached to your standard lease agreement. This document spells out the specific terms under which pets are permitted and gives you clear grounds for enforcement if those terms are violated.
Your pet addendum should specify which types of animals are allowed. Most landlords permit dogs and cats while restricting exotic animals, livestock, and certain reptiles or arachnids. State the maximum number of pets allowed per unit.
Include vaccination and licensing requirements. Wayne County, Oakland County, and Macomb County each have their own animal licensing requirements, and your addendum should reference the applicable county’s regulations. At minimum, require proof of current rabies vaccination and county registration.
Address waste cleanup responsibilities directly. The addendum should require tenants to promptly clean up after their pets in all common areas, yards, and shared spaces. Specify that failure to do so constitutes a lease violation. For properties with yards, outline expectations for maintaining the outdoor space, including filling any holes dug by dogs and keeping the lawn free of waste.
Include a damage liability clause that makes the tenant responsible for all pet-related damage beyond normal wear and tear. This should cover damage to the unit itself, common areas, landscaping, and any damage to other tenants’ property.
Managing Pet Damage Effectively
Even with the best policies in place, pet damage can occur. A few proactive measures can minimize the impact on your properties and your bottom line.
Require tenants with pets to carry renters insurance that includes pet liability coverage. A minimum coverage amount of $100,000 is standard. This protects both the tenant and you in the event that a pet causes injury to another person or significant property damage.
Conduct your move-in inspection with extra attention to areas vulnerable to pet damage. Document carpet condition, door frames, window sills, blinds, and yard landscaping. These are the areas most likely to show wear from animals. Detailed move-in documentation makes it much easier to assess pet-specific damage at move-out.
For properties with yards, consider including yard maintenance terms in your pet addendum. Dogs can cause significant damage to grass, gardens, and fencing. Specify that tenants are responsible for repairing or covering the cost of yard damage caused by their pets.
Schedule periodic property inspections (with proper notice as required by Michigan law) to catch pet-related issues early. Urine damage to flooring, scratches on doors, and odor buildup are all easier and cheaper to address when caught early rather than discovered at move-out.
Smart pet policies protect your investment while keeping your properties competitive in Metro Detroit’s rental market. By understanding Michigan’s legal requirements, setting fair financial terms, and documenting everything carefully, you can welcome pet-owning tenants with confidence. The additional revenue from pet rent and the reduced vacancy from a larger applicant pool make it well worth the effort of creating and enforcing clear policies.