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If a Tenant Has a Pet and a Pet Fee Is Charged, Does That Get Paid Out to the Property Owner? Is the Pet Fee Refundable to the Tenant?

The key is understanding what a pet fee is (and is not) and how it’s treated under the lease, management agreement, and North Carolina law.

Audience: property owners who want clarity on how pet fees work, who receives them, and how they differ from pet rent or pet deposits.

Pet-related charges are a frequent source of confusion.

Here's the clear breakdown.

Frequently Asked Questions

Does the pet fee get paid to the owner?
Yes. The pet fee is included in gross income, the management fee is deducted, and the net is paid to the owner.

Is a pet fee refundable to the tenant?
Generally, no. Pet fees are usually non-refundable.

Is a pet fee the same as a pet deposit?
No. These are very different things.

Does pet rent work differently?
Pet rent is also recurring income that works the same way as the pet fee regarding management fees.

What a Pet Fee Actually Is

A pet fee is:

  • A one-time, non-refundable charge
  • Paid by the tenant for approval to keep a pet
  • Intended to offset additional wear and administrative costs associated with pets

It is not:

  • A security deposit
  • Monthly rent
  • A repair fund

How Pet Fees Are Processed

When a pet fee is collected:

  1. The pet fee is included in the property's gross income
  2. The management fee is calculated on gross income (which includes the pet fee)
  3. The net amount is paid to the owner

This is the same process used for other income sources.

How Pet-Related Damage Is Handled

If a pet causes damage, repairs are charged like any other damage, costs may be deducted from the security deposit, and additional charges may be pursued if needed.

The pet fee itself is not a damage fund. It's income that goes through standard processing.

What About Pet Rent?

Pet rent works the same way as pet fees:

  • Charged monthly
  • Included in gross income
  • Management fee calculated on gross income
  • Net paid to owner
  • Appears on owner statements

Are Pet Fees Refundable to Tenants?

Pet fees are usually non-refundable, not applied toward damages, and not returned at move-out.

This should be clearly disclosed in the lease.

How This Appears on Owner Statements

On your statement, you'll see:

  • Pet fees listed as part of gross income
  • Management fee calculated on total gross income (including pet fees)
  • Net disbursement reflecting all income minus fees and expenses