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If you own a rental property, one of the questions you may find yourself asking is: Should I allow pets in my rental?
It is a decision that deserves careful consideration. Pets can create additional wear and tear on a property, but a no-pet policy can also limit your pool of potential renters. So, which approach is right for your investment?
At PropertySense, we believe there is no one-size-fits-all answer. We let each owner make the decision based on what feels right for you, your investment goals, and your property. Our role is to help you understand the potential benefits, risks, and legal considerations so you can make an informed decision. Visit our website to view our Property Owner FAQ page for similar topics.
The Benefits of Allowing Pets
There are several reasons rental property owners may want to consider a pet-friendly policy.
1. A Larger Pool of Potential Tenants
One of the biggest advantages of allowing pets is simple: you can appeal to more renters.
A significant number of households have pets, and renters with dogs or cats often prioritize finding a home where their pets are welcome. If your property does not allow pets, those prospective residents may automatically eliminate your rental from consideration.
Allowing pets can therefore increase the number of qualified applicants who are able to consider your property. A larger applicant pool can give you more opportunities to find the right resident for your investment.
Of course, allowing pets does not mean compromising your screening standards. You should still evaluate applicants based on consistent, legally compliant rental criteria and consider the overall qualifications of each applicant.
2. Potential for Additional Rental Income
Pet-friendly properties may also provide an opportunity for additional rental income through legally permitted pet rent.
Colorado law places limits on the amount of additional rent a landlord can charge as a condition of allowing a pet. Under current Colorado law, additional pet rent cannot exceed $35 per month or 1.5% of the tenant's monthly rent, whichever is greater.
For example, if your rental property leases for $2,000 per month, 1.5% would be $30. Because $35 is greater, the maximum additional pet rent under this rule would be $35 per month.
That additional income can help offset some of the increased costs associated with maintaining a pet-friendly property.
3. Additional Protection for Your Property
Colorado also regulates pet-related security deposits. For a typical household pet, a landlord may require an additional refundable pet security deposit of up to $300 as a condition of allowing the pet to reside at the property.
This can provide an additional layer of financial protection against qualifying pet-related damage.
It is important to remember, however, that a pet deposit is not a blank check for property damage. Security deposits must be handled according to Colorado law, and deductions should be based on actual, allowable damages rather than normal wear and tear.
4. Potentially Longer Tenancies
Another potential benefit of allowing pets is resident retention.
Finding a new home can be particularly challenging for renters with pets. If a resident is happy with the property, likes the location, and knows their pet is welcome, they may have more incentive to renew rather than go through the time, expense, and uncertainty of finding another pet-friendly rental.
Longer tenancies can benefit owners by reducing turnover, vacancy periods, marketing expenses, and the costs associated with preparing a property for a new resident.
And sometimes, allowing a pet can simply help create a positive relationship between the owner and resident.
What Are the Risks of Allowing Pets?
Of course, there are potential downsides.
Pets can contribute to scratched flooring, damaged doors, stained carpet, damaged landscaping, odors, or other property issues. Dogs may also cause noise concerns, while certain pets may create additional maintenance considerations.
This is why a pet-friendly policy should not simply mean "anything goes."
Owners can establish reasonable pet policies addressing issues such as the number of pets, applicable property rules, and resident responsibilities, while making sure those policies comply with federal, state, and local laws.
A strong resident screening process is also important. The goal isn't necessarily to avoid residents with pets—it is to find qualified residents who will take good care of your property.
What About Service Animals and Assistance Animals in Colorado?
This is an especially important distinction for Colorado rental property owners.
Service animals and assistance animals are not simply treated as ordinary household pets under fair housing laws. A property's standard "no pets" policy does not automatically mean an assistance animal can be prohibited.
In 2026, Colorado enacted HB26-1045, which addresses disability-related housing protections and clarifies requirements involving assistance animals and reasonable accommodations. The law defines an assistance animal to include animals that perform work, tasks, assist an individual, or provide therapeutic emotional support related to a disability. It also includes both service animals and emotional support animals.
When an applicant or resident requests an assistance animal as a reasonable accommodation, housing providers generally need to evaluate the request through the appropriate accommodation process rather than simply applying their standard pet policy.
Under the new Colorado law, permitting an assistance animal is presumed to be a reasonable accommodation when the housing provider has been given an opportunity to participate in an interactive accommodation process with the individual requesting the accommodation. If the disability or disability-related need for the animal is not obvious, a housing provider may request reasonable documentation supporting the disability-related need.
There are also important protections for residents with assistance animals. A housing provider generally cannot treat an assistance animal like a regular pet for purposes of charging pet rent or a pet deposit. Colorado legislative guidance specifically notes that individuals with disabilities who use assistance animals cannot be charged a pet deposit.
At the same time, assistance-animal protections do not mean an owner has no recourse if an animal causes legitimate problems. Colorado's 2026 law allows housing providers, when evaluating an accommodation request, to consider documented, specific conduct that poses a direct threat to the health or safety of others or causes substantial physical damage to property.
Because these situations can involve both Colorado and federal fair housing requirements, owners should avoid making assumptions or automatically denying an assistance-animal request based on a property's pet policy.
So, Should You Allow Pets?
Ultimately, the decision is yours.
For some properties, a no-pet policy may make sense. For others, allowing pets may provide significant advantages, including a larger tenant pool, additional legally permitted rental income, potential pet-related financial protection, and the possibility of longer-term residents.
The key is to consider your property's condition, location, flooring and finishes, investment goals, and tolerance for potential pet-related wear and tear.
At PropertySense, we don't believe every rental property should have the exact same pet policy. We work with owners to help them make decisions that fit their individual property and investment strategy.
Whether you choose to allow pets or maintain a no-pet policy, having a consistent screening process, clearly written lease requirements, and a thorough understanding of applicable laws can help protect your investment.
This article is provided for general educational purposes and is not legal advice. Colorado landlord-tenant and fair housing laws can change, and individual circumstances may require professional legal guidance.
Have Questions About Your Rental Property?
Deciding whether to allow pets is just one of the many decisions that comes with owning a rental property. If you're unsure which policy makes sense for your investment, PropertySense can help you evaluate your options and make an informed decision.
Your property is an investment. Let's make sure your rental strategy works for you.
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