Appropriate Move-In Fee & Pet Fee Amounts
I have a few leases renewing in the next two months and I’m switching from security deposits to move-in feed due to the punitive nature of deposits in Chicago (tenant can sue and usually win for 3X amount). I’m also reluctantly beginning to accept tenants with pets because 74% of renters have pets apparently. Wanted to get your guys’ input on what to charge:
- What do you feel an appropriate move-in fee on a one-year lease would be? I’m thinking $250/bedroom. So a 2Bed/1Bath would be $500. And I could adjust this up or down depending on how much I want them as a tenant and their situation. Keep in mind, there would be no deposit. So the up-front cost would be lower to the tenant, which is good for them.
- I’m between charging a one-time pet fee or charging pet rent. I’ve seen anywhere from $300 to $500 per pet as a one-time fee and between $20 and $50 per monthly pet rent. I’m also considering giving the tenant an option. So say, $30/month or $300 for the year up-front.
What are your thoughts? I’d appreciate some different perspectives.
TBH- when you wrote this it sounds like you never plan on returning your tenants security deposit. I sued my landlord once and got 3x my deposit back. They falsely accused me of weird things like not reporting a leak under a cabinet (I had no idea and they discovered it when they remodeled and put in new cabinets). They also said I left the apartment dirty- I had receipts showing weekly professional cleaning. They handed in Home Depot receipts that includes things like Gatorade and paper towels when we went to court. So sums. Anyway- you should charge the security deposit- how else do you protect yourself (especially with pets who could damage floors). But also return the deposit as you are supposed to do. As to the pet situation- I think either way is acceptable. Usually it's to recoup the extra cost of a deep clean after the person with pets moves out. So either way your covered with the one-time and/or slightly higher monthly rent.
I do return deposits and only withhold for anything above normal wear and tear. But Chicago is extremely punitive on deposits and the Chicago Association of Realtors has advised to stop using them. I have to pay some measly amount of interest annually, not based on lease expiration but on calendar year. If they cause damage and I withhold, they can still sue for 3X the deposit and still usually win. If I forget the unit number on the check sending it back, I can get sued for 2X amount. If interest is off by a cent, I can get sued. Fuck that.
And if they do cause damage, I can still due for recovery of damages and attorney fees and be in a much better position legally.
I think (at least in my experience which is pretty broad) that the problem with the plan you mention is that even though you will win in court, it can be almost impossible to get the person to pay up. I've seen it a lot of times and then your on the hook for the atty fee (not if you use small claims in my area- no atty. needed) and then you're still stuck with the damages. Just a thought.
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