We examine the potential workings of the new system in light of the Government's Renters (Reform) Bill, which will allow landlords to request insurance against pet damage.

Demand for pet-friendly rentals has always been high, but some landlords have been hesitant to accept their renters' feathered or furry friends due to worries about everything from damage to noise disturbance. The problem was made worse in 2019 when the Tenant Fees Act prohibited landlords from requiring larger deposits for rentals that include pets in order to offset the possibility of damage and potential cleanup costs.

A provision in the new Renters (Reform) Bill that would grant tenants the legal right to request permission for a pet, which landlords cannot "unreasonably refuse," is one of the Government's main campaign promises. Ministers intend to change the Tenant Fees Act to permit landlords to request that renters purchase damage insurance from third parties in order to reduce the risk. Additionally, the modifications give landlords six weeks to decide.

HOW WILL IT FUNCTION IN REAL LIFE?

The tenant must now submit any requests to maintain a pet in writing, along with a description of the animal, in accordance with the new regulations. Then, within 42 days of receiving the request, the landlord must respond to the renter.

Within this time frame, they can also request additional details, such as the breed of the animal, and then they have another seven days to respond definitively. The landlord is under no duty to decide if the renters don't comply with such a request.

According to the bill's terms as written, landlords may require tenants to do one of the following:

• Take out insurance to cover the risk of pet damage to a "reasonable level" (taking into account both the pet and the property) or,
• Pay the landlord's expenses for purchasing a policy providing the same protection.

"Reasonable" levels would be seen as a premium paid exclusively for pet damage or a component of a larger insurance policy to cover the part of the insurance policy expressly relating to pet damage.

The bill emphasizes that the tenant must get a written explanation of these terms at the moment any consent is given.

NRLA CAMPAIGNING

The National Residential Landlords Association (NRLA) has been advocating for the change to allow for such insurance payments or, alternatively, the reintroduction of a "pet deposit," a one-time payment to cover any damages or losses, in conjunction with the animal welfare organization AdvoCATS.

The charity's co-founder, Jen Berezai, stated: "Pets can cause issues, and landlords can have legitimate worries. Our main suggestion was to change the Tenant Fees Act so that a landlord could request or charge for pet damage insurance. This would let landlords contemplate accepting pets without having to worry.

Before the measure becomes law, there are obviously many unanswered questions and a lot that has to be discussed and explained. What is admissible? What ought to be asserted? If a dog destroys a door, that seems apparent, but it is far less evident to claim for a damaged carpet that is 10 years old.

"There will need to be a pets' equivalent since the accepted lifespan of a carpet is already different for those with and without children (five and seven years, respectively)."As with any insurance, there will be wide variations in coverage and costs. It's predicted that many new goods will emerge from the relatively small existing selection in preparation for the day when landlords will be required by law to take into account pets.

WHAT DOES THE INSURANCE INDUSTRY SAY?

Domestic pet damage caused by biting, scratching, feces, or chewing is now a frequent exclusion from insurance policies, but as new law moves through Parliament, numerous businesses are creating solutions to satisfy the needs of the new market.

There are substantial obstacles, according to NRLA insurance partner Total Landlord Insurance, both in terms of cost to tenants and scope of coverage, with potential problems including gaps in coverage for specific types of damage.

There are also worries that if a tenant's circumstances change—for instance, if a dog owner moves from a home with a garden to a high-rise apartment—they can accidentally void their insurance.

The company is eager to pursue the notion of a pet deposit because, unlike insurance payments, which are non-refundable, money might be refunded to the renter at the conclusion of the tenancy should no harm occur.

"There are still some confusions regarding the precise grounds, and we need more clarification from the government"

Eddie Hooker, the company's founder and CEO, stated: “There is the need for a clear debate on this difficult subject and Total Landlord Insurance is looking to take a lead in developing such options for pet-friendly tenants and landlords. A choice between a pet deposit or insurance, or even a combination of the two, would aim to strike a fair balance between supporting tenants with pets and providing adequate security for the landlord.”

WHAT FACTORS WOULD ALLOW ME TO REFUSE A PET?

According to the bill, a landlord has the right to withhold permission if:

• The pet would put the landlord in violation of a contract with a superior landlord.
• The landlord has made a reasonable effort to secure the superior landlord's consent, but they have not provided it.

The NRLA has requested more information on other legitimate situations, particularly with reference to the kind of pet and property involved.

“There are still some grey areas on the exact grounds, and we need greater clarity from Government. If a superior lease bans pets, then that’s clear-cut, however, what happens if you have a tenant wanting to keep three Great Danes in a 12th-floor flat? This is clearly inappropriate, but would this be considered a reasonable ground for refusal? What is needed is specific guidance on what is and is not acceptable, so landlords and tenants know where they stand.” according to Chris Norris, director of strategy and campaigns for the NRLA.

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