Pets in a Rental Property: What Landlords Should Really Know About Wear, Depreciation and Long-Term Value

Mention pets to a landlord and you will often get one of two reactions. Either a firm 'absolutely not' before the conversation goes any further, or a reluctant 'I suppose so' with a long list of conditions attached. What you rarely get is a calm, measured conversation about what the actual risk looks like.

That is the conversation worth having. Because the reality of pet friendly rental property management is more nuanced than most people expect, and the assumptions landlords carry into the decision can sometimes cost them more than the pet ever would.

The Depreciation Question Landlords Often Ask

One of the first practical concerns that comes up is depreciation. Will a pet accelerate wear on the property? Will it affect what we can claim? Will it make the place harder to lease down the track?

These are fair questions. Pets can contribute to wear on flooring, carpet, screens, and paintwork. That is not a myth. But what matters is the degree, the type of pet, and how well the tenancy is managed around it. According to BMT Tax Depreciation, pet-related wear does not necessarily translate into a loss for investors, particularly when maintenance is documented and the right safeguards are in place from the start.

Depreciation schedules work in your favour when assets like carpet and flooring are replaced or updated. A well-documented tenancy, with condition reports and routine inspections, means you have the paper trail to support those claims. That process starts with good management, not with a blanket ban on pets.

What Pet-Related Wear Actually Looks Like

Here is what most people miss. Pet damage is not uniform. The impact a ten-year-old indoor cat has on a property is completely different to a large, untrained dog left unsupervised for extended periods.

The areas that do tend to show more wear in pet-friendly properties include:

• Carpet and flooring. High-traffic areas near doorways, hallways, and feeding spots can show wear faster. Hard flooring generally holds up better than carpet.
• Paintwork and walls. Scratching and scuffing can occur, particularly around skirting boards and doors.
• Screen doors and windows. A common one. Screens are relatively affordable to replace but can be a consistent maintenance item.
• Odours. This is the one landlords worry about most. It is a real consideration, particularly with carpet. However, odour issues are almost always the result of poor hygiene habits, not just the presence of a pet.

None of these are trivial. But they are also manageable with the right screening process, the right lease conditions, and proper inspections throughout the tenancy.

Why Pet-Friendly Does Not Automatically Mean More Damage

This is something we have seen play out more than once. An owner is hesitant about a pet application, they reluctantly agree, and the tenancy turns out to be one of the best they have had. Immaculate property at each inspection. Lease renewed multiple times. No drama.

On the other side, we have seen properties handed back in poor condition by tenants with no pets at all. Walls marked, carpets stained, maintenance ignored for months. The assumption that pets equal damage does not always hold up when you look at the actual outcomes.

What the research supports, and what our experience confirms, is that the quality of the tenant matters far more than whether they have a pet. A responsible pet owner who has good rental references, a stable income, and a well-trained animal is a very different proposition to someone who ticks every 'safe' box on paper but treats the property poorly.

The pets are not the whole picture. The humans make the difference.

How Good Screening Changes the Conversation

When a pet application comes in, the questions we ask are different to a standard tenant screening process. Things like:

• How old is the pet?
• Is it primarily an indoor or outdoor animal?
• Has the tenant had pets in previous rentals, and what do those references say?
• What breed and size is the animal?
• Is it desexed? Is it registered?
• What happens to the pet during the day?

These questions give us a far clearer picture of the actual risk profile. A seven-year-old desexed indoor cat with two positive rental references from previous property managers is not the same risk as a two-year-old dog with no rental history and an owner who works long hours away from home.

The screening conversation is where a lot of the risk gets assessed and managed, before anyone signs anything.

The Owner Who Almost Said No

We had a situation not long ago where an owner received a strong application. The tenant's employment was solid, rental history was excellent, references were glowing. There was one issue: they had a dog.

The owner's initial reaction was to pass. They had always had a no-pets rule and were not inclined to change it. We asked if they were open to a conversation before making a final call.

We went through the application together. The dog was older, well-trained, had two previous landlords who both confirmed no issues. We talked about what additional lease conditions we could include, how we would approach inspections, and what the property's current flooring situation looked like in terms of remaining useful life anyway.

The owner agreed to give it a go. That tenant stayed for three years. The property was returned in excellent condition.

That outcome is not guaranteed. But it also does not happen without the right conversation happening first.

The Investment Case for Being Pet-Friendly

Beyond the individual tenancy, there is a broader point worth making for Sydney landlords thinking about their long-term asset strategy.

Pet-friendly properties attract a larger pool of applicants. In a competitive rental market, that matters. Tenants with pets often struggle to find suitable properties and, once they find a good one with a landlord who treats them fairly, they tend to stay. Lower vacancy rates and longer tenancies have a real impact on your annual return, often more than the cost of replacing a screen or refreshing a section of carpet ever would.

Tenant retention is one of the most underestimated levers in property investment. Every time a property is vacant, you are paying for it. Every time you re-lease, there are costs involved. A long-term tenant who happens to have a well-behaved pet is often a significantly better financial outcome than a high-turnover property that stays technically pet-free.

Managing the Maintenance Side Well

The practical piece is making sure the maintenance and documentation side is handled properly throughout the tenancy. That means:

• A thorough ingoing condition report with photographs
• Regular routine inspections, not just at the start and end
• Clear communication with the tenant about their responsibilities
• Addressing minor maintenance before it becomes a larger issue
• A final inspection process that documents any changes accurately

When these steps are followed consistently, you have a clear record of the property's condition and any wear that has occurred. That supports any depreciation claims, any bond discussions, and any insurance matters that might arise.

This is where good property management matters. Not just at the beginning of a tenancy, but all the way through it.

Frequently Asked Questions

Can a landlord in NSW refuse to allow pets in a rental property?

Under NSW tenancy legislation, landlords can refuse a pet request, but the process for doing so has become more structured. Landlords cannot unreasonably withhold consent. Refusal must be communicated within a set timeframe and must meet specific grounds. It is important to understand the current rules before declining a pet application.

Does having a pet in a rental property affect depreciation claims?

Pet-related wear can accelerate the replacement cycle for certain items like carpet and flooring, which may actually support depreciation claims if those assets are updated. A well-documented tenancy with proper condition reports helps ensure any legitimate claims are supported. Speak to a registered quantity surveyor for specific depreciation advice.

What safeguards can a property manager put in place for a pet-friendly tenancy?

Additional lease conditions, thorough ingoing reports, regular inspections, and clear communication about tenant responsibilities are all part of managing a pet-friendly tenancy well. The right screening process at the start is the most important safeguard of all.

Are pets always a higher risk for property damage than tenants without pets?

Not necessarily. Tenant behaviour, lifestyle, and sense of responsibility have a significant influence on how a property is maintained, regardless of whether pets are involved. A responsible tenant with a well-managed pet can be a far lower risk than an irresponsible tenant with none.

How does tenant retention relate to allowing pets in a Sydney rental property?

Pet owners often find it difficult to secure pet-friendly rentals and tend to stay longer when they find a property that suits them. Longer tenancies reduce vacancy costs and reletting fees, which can improve overall investment performance over time.

Pets are not automatically the risk most landlords assume them to be. With the right screening, the right management, and a clear-eyed look at the actual numbers, a pet friendly rental property can be a genuinely sound investment decision. Sometimes the real risk is not the animal at all. It is the assumptions we make before we have asked the right questions.

Contact Us

Thinking about a pet application or want to talk through how we approach tenant screening? Contact us to discuss your investment property and we can walk you through the process together.