UK Landlords and Pets: Why Allowing Pets in Rentals Is a Smart Move in 2025

The Pet Effect: Why Landlords Who Accept Pets Are Winning Big

Allowing pets in rental properties used to be a major concern for landlords. Worries about property damage, noise complaints, and odours often led to strict “no pets” policies. However, landlords who are open to pet-friendly rentals are now reaping significant benefits. With growing tenant demand and potential financial incentives, the “pet effect” is helping landlords attract reliable, long-term tenants.

1. Pet-Friendly Properties Are in High Demand

According to research by the Pet Food Manufacturers’ Association, 62% of UK households now own a pet—a number that has increased significantly in the wake of the COVID-19 pandemic. For renters, finding a pet-friendly property can be a major challenge, creating a market opportunity for landlords.

-Tenant Demand: Tenants with pets often face limited housing options, meaning they’re more likely to choose and stay in pet-friendly properties.

-Longer Tenancies: Studies show that pet owners tend to stay in properties longer to avoid the hassle of moving and searching for another pet-friendly home.

2. Financial Benefits of Accepting Pets

Landlords can benefit financially by tapping into this niche, as tenants are often willing to pay more for pet-friendly accommodations. In fact, many landlords are charging higher rent for tenants with pets—a practice that is currently allowed under UK rental laws.

-Additional Rent: Landlords are permitted to charge higher rent for tenants with pets to account for potential wear and tear.

-Steady Income: Longer tenancy periods reduce the risk of vacancies, helping landlords maintain consistent rental income.

However, landlords cannot legally take a higher deposit specifically for pets due to the Tenant Fees Act 2019, which caps deposits at five weeks’ rent for most tenancies.

3. Legal Considerations: Can Landlords Refuse Pets in 2025?

Current UK laws do not force landlords to accept pets, but there is growing pressure to change this. In January 2021, the government updated its Model Tenancy Agreement to make it easier for tenants with pets to find housing. While this agreement is not legally binding, it reflects a shift in policy.

What to Watch For:

-Future Legislation: The Renters’ Reform Bill, expected to pass in 2025, includes provisions aimed at making it harder for landlords to refuse pets without good reason.

-Possible Changes: If passed, landlords may need to justify pet refusals based on specific property concerns, and there could be additional guidance on managing pet-related damage.

4. Addressing Common Landlord Concerns

While allowing pets can bring many benefits, landlords are often concerned about potential property damage or disturbances. Here’s how to mitigate those risks:

-Set Clear Pet Policies: Include rules in the tenancy agreement about the type, size, and number of pets allowed. Specify responsibilities such as cleaning or repairing pet damage.

-Conduct Regular Inspections: Schedule periodic property checks to ensure pets are not causing damage.

-Request Pet References: Ask for references from previous landlords to verify the pet’s behaviour.

5. Insurance and Protection Options

Although landlords cannot take a higher deposit, they can protect themselves by ensuring their landlord insurance covers pet-related damage.

-Comprehensive Insurance: Some insurance providers offer policies tailored to cover damage caused by tenants’ pets.

-Pet Clauses in Agreements: Specify any charges for damage and include end-of-tenancy cleaning expectations to protect the property.

Tip: Communicating these terms clearly with tenants helps avoid disputes.

6. The Emotional and Social Benefits for Tenants

Allowing pets not only benefits landlords financially but also fosters a positive tenant experience. Pet-friendly accommodations contribute to tenant satisfaction, mental well-being, and stronger landlord-tenant relationships.

-Mental Health Benefits: Studies have shown that pets help reduce stress and improve overall well-being, creating happier tenants.

-Increased Tenant Loyalty: Satisfied tenants are more likely to renew leases and recommend the property to others.

Final Thoughts: Pet-Friendly Policies as a Competitive Edge

As the rental market becomes increasingly competitive, offering pet-friendly accommodations can set landlords apart. By charging higher rent, securing long-term tenants, and reducing vacancies, landlords who welcome pets are positioned to “win big.”

However, staying informed about legal changes is crucial. With upcoming reforms potentially limiting a landlord’s ability to refuse pets, proactively adopting pet-friendly policies now could give landlords a head start.

Key Takeaway: Embracing the pet effect is more than just allowing furry friends—it’s about creating a win-win situation where both landlords and tenants benefit.