San Diego has become one of the cities where dogs are part of the social life at breweries, and cat cafes have popped up in neighborhoods all the way from Hillcrest to Ocean Beach. Almost 67% of households in the area have pets. Landlords in this market are probably already aware of the challenge this presents. Opening your property to pets quickly gives you access to a much bigger pool of renters that you can choose from. The flip side is that plenty of property owners still worry about the usual suspects like property damage, noise complaints from neighbors and liability problems. It’s why so many of them just stick with a no-pet policy across the board.
San Diego actually ranked as the fourth most dog-friendly city in the entire U.S. last year, with more than half a million dogs in the area. Even with so many pets around, about 60% of rental listings still don’t allow them at all. Pet owners who are ready and willing to pay extra rent find themselves in competition for the few places that will accept them. At the same time, the landlords who won’t budge on their pet policies usually see their properties stay empty for weeks or months longer than they need to be.
California rolled out its new security deposit laws in July 2024, and landlords can now only ask for one month’s rent as a deposit – that’s it. This has left plenty of property owners needing other ways to protect their rentals. Service and emotional support animals also add some complications to the situation since you have to accommodate them regardless of your standard pet policy. Landlords have the challenge of checking which assistance animals are legitimate. It gets complicated very quickly.
The numbers tell an interesting story about pet-friendly rentals in San Diego’s market. Let’s talk about it!
Pet Owners and the San Diego Rental Market
Most landlords in San Diego are overlooking a big opportunity that’s been right in front of them this whole time. Around 2/3 of all households in the city have at least one pet. But only about 40% of rental properties will actually let them move in. That difference between supply and demand should make you reconsider your no-pets policy.
The data on pet-friendly rentals is pretty eye-opening when you dig into it. Properties that welcome pets rent out much faster and also stay occupied for much longer periods. Pet owners usually stay put for 2 to 3 years instead of just 12 months. It’s not hard to see why this happens. These renters have way fewer options available to them, so they’re grateful for the properties that will actually accept them and their furry companions.
This shortage of pet-friendly rentals is especially tough in some of San Diego’s most popular neighborhoods. North Park and Pacific Beach are full of young workers who want to have their dogs or cats with them. They’ll spend weeks and sometimes even months just trying to find a decent place that will take pets. Once they finally land a property that works for them and their pet, they’re not excited to go through that whole exhausting search process again anytime soon.
The scarcity of pet-friendly rentals leads to tenant behavior that works out well for property owners. Pet owners are very aware that they can’t simply pick up and move on a whim, as other renters might. Their next place could take forever to find, and they know it. Because of this reality, they turn out to be very reliable tenants who always pay their rent on time and take care of the property. They have worked too hard to find this place, and they’re not about to risk losing it over something preventable.
Choosing to accept pets in your rental property immediately sets you apart from more than half of all the other landlords in San Diego. In a rental market where tenants usually have tons of different properties to choose from, that distinction does matter. You become the answer to a massive problem that thousands upon thousands of San Diego renters are desperately trying to solve right now.
More Money with Pet-Friendly Rentals
Pet-friendly rentals in San Diego are a lot more profitable than standard rentals, and the numbers are pretty impressive when you see them broken down. Landlords who welcome pets usually add an extra 10% to 20% to their base rent, and that’s just the start. That extra money actually starts to accumulate month after month.
A standard San Diego rental might go for $2,500 a month without pets. The same exact property could command $2,750 or $3,000 if you allow pets. And that’s before even factoring in the monthly pet rent itself. Most landlords in the area charge an extra $25 to $75 per pet each month. And there’s the pet deposit too, which usually runs between $200 and $500 per animal up front.
These fees and charges mean that you could be collecting an extra $300 to $900 every month from the exact same property. We’re talking about thousands of dollars in extra income each year!
The extra income is one part of the equation, though. Properties that allow pets sit empty for much shorter periods between tenants. A bigger pool of possible tenants means faster lease-ups and fewer vacancy days.
Pet owners also tend to be more responsible tenants. I see this pattern play out all the time. Anyone who can manage vet bills, pet food and all the other costs of pet ownership usually has a steady income and solid financial habits. These tenants usually take care of their rentals quite well, too, partly because they want to get their pet deposits back.
And about those pet deposits – most landlords almost never need to touch them for repairs. The deposits give you a financial cushion as you bring in all that extra rental income month after month.
Pet Laws and Deposits in California
Service animals and legitimate emotional support animals are actually in a different category from regular pets. Even if you have a strict no-pet policy in place, you still have to allow these animals. Federal Fair Housing laws make this accommodation mandatory as long as tenants give you the right paperwork. That last part about the right documentation matters quite a bit because tons of fake certificates are floating around these days.
With emotional support animals specifically, you can request a letter from a licensed healthcare provider. The letter has to prove two requirements. First, it needs to show that the tenant actually has a disability. Second, it needs to explain why the animal is necessary for their health. The problem is that fake ESA certificates are everywhere now. Some random websites will sell anyone a certificate for $50 without asking any questions, which is why you need to double-check that any letter you receive comes from a real healthcare professional.
California gives landlords the ability to set breed restrictions for regular pets to cut down on liability. However, these same restrictions won’t apply to service animals or emotional support animals. California also has specific laws about security deposits that every landlord needs to know. The total amount you can charge for a security deposit and a pet deposit combined has a hard cap at two months’ rent – it’s it and no exceptions.
Pet rent is a different story, though. The monthly pet fees don’t count against that two-month deposit limit, and you can charge them alongside normal rent each month. This extra income helps to offset the wear and tear that pets cause over time. Best of all, you can set up this whole system and stay within the law.
Keep Your Property Safe with Pet Owners
Pet damage is probably the biggest concern for most landlords, and I get why. The reality here, though, is that you can absolutely protect your property and still work with tenants who have pets. You just need the right approach and a few solid strategies in place.
Renters insurance with pet liability coverage should be something you require. Most policies only add about $10 or $15 to what your tenant already pays each month. For that small amount, you’re protected from injury claims and any property damage that might happen – it gives everyone more security.
A solid lease addendum is where you spell out all the important details. You want to be very specific about professional carpet cleaning requirements at move-out time. The lease needs to specify who pays for flea treatment if it becomes a problem. How frequently does pet waste need to be picked up from the yard? Put an exact timeframe in writing.
Quarterly inspections work really well for lots of landlords, especially during that first year with a new tenant. Small problems are way easier to fix if you catch them early. A carpet with a few stains after three months is manageable. That same carpet after three years probably needs a full replacement.
Your flooring choices make a huge impact on how well your property holds up with pets. Luxury vinyl plank and tile work great in main living areas and hallways throughout San Diego rentals. Save carpeting for the bedrooms where pets usually spend less time.
Properties with certain features draw in more responsible pet owners. A fenced yard is obviously a big draw for dog owners who actually care about their pets. The same applies to rentals near dog parks and walking trails around Balboa Park. These particular tenants also usually turn out to be very reliable and responsible renters overall.
Tenants Who Have Pets
Pet owners who regularly visit their veterinarian usually turn out to be great tenants, and there’s a simple reason for that correlation. Landlords have started to pick up on this pattern, and many of them now call the veterinary offices as part of their standard reference checks. It’s just like how they’d verify employment history. A quick conversation with the vet’s office staff can show if a tenant stays current with vaccinations and brings their pet in for regular checkups. That phone call tells you plenty about how responsible a person is.
Professional pet screening services have made life much easier for property managers. A platform like PetScreening.com takes care of all the verification work and checks vaccination records along with any behavioral history that matters. Landlords can save hours of work every week, and they also get documentation they can trust.
Landlords who actually meet the pet before signing the lease have much better experiences. Just a quick backyard visit can tell you everything about the pet and the owner. You’ll see if the dog comes when called or ignores the owner, and whether the cat is friendly and calm or ready to scratch anyone who gets close. Those 5 minutes teach you more than any application ever would.
The “pet negotiable” approach has become popular with San Diego landlords because it gives them lots of flexibility. Instead of a blanket policy that excludes all pets, landlords can review each situation on its own merits. A 12-year-old dog who mostly naps all day is obviously a very different situation than an untrained puppy who’s still chewing everything in sight. Tenants with senior pets actually make some of the best long-term renters because they’re usually settled and responsible.
Some behaviors during the application process should raise red flags for any landlord. Applicants who get defensive about standard pet deposits or who can’t seem to find vaccination records might not be the best fit for your property. Responsible pet owners always have their paperwork ready, and they know why the deposits are there in the first place.
Maximize Your San Diego Rental Property
The choice to allow pets or not depends on your own situation as a landlord. You need to take an honest look at what actually makes sense for your property. Landlords who own luxury furnished rentals have different considerations than those with standard apartments. Properties with expensive landscaping face different challenges than properties with simple yards. Some owners just aren’t comfortable with the possibility of damage, and that’s fine. There’s nothing wrong with protecting your investment in whatever way feels right to you.
The numbers for most San Diego rentals paint a pretty obvious picture. Many landlords worry that pets are going to destroy their properties and cost them a fortune. But if you actually run the numbers, it’s a different story. Pet-friendly properties can charge more rent each month, and that’s just the start. Tenants who have pets usually stay for years instead of just a few months. And you have a lot more renters who want to rent from you in the first place. Add it all up, and you’re looking at significantly more money in your pocket over the years. Any repairs that you might need down the line usually don’t come close to what you’ve earned in extra income. And that’s especially true if you have decent screening in place and you’re collecting the right deposits from the start.
Pet policies don’t have to be an all-or-nothing choice from day one. Cats could be the only animals that make sense for your property, to start with. You could also allow dogs with a weight restriction, maybe 30 pounds or less. Give it a year or two and see how it goes with your tenants and your property. The policy can always evolve as your experience grows and your comfort level changes.
San Diego has become a dog-lover’s paradise over the last decade. Weekend beach trips with dogs are standard now. Brewery patios fill up with customers and their puppies. Coffee shops have water bowls out front. Pet-friendly rentals just make sense when that’s how San Diego residents actually live. The best move is to take a hard look at your property and your financial goals. Think about how much extra work you can take on.
At Palm Tree Properties, we know that every rental property has its own unique needs. Every owner has different goals and comfort levels, too. We’ve helped hundreds of San Diego property owners work through decisions just like this one. Our experience has taught us how to balance investment protection with income maximization. We’re ready to look into pet-friendly policies with you if that’s the direction that you want to go. We can also talk about plenty of other strategies for increasing your rental income. Years of running properties throughout San Diego have given us proven tips and tricks that we’re happy to share.
Request your free rental evaluation today to find out what your property could earn in the market. Let’s talk about how we can work together to maximize your investment returns as we take care of all the day-to-day management tasks.
