Aligning Finances With Your Values: A Pet Story

I recently read an article about things landlords should and shouldn’t do. I wish I could find the link, but I didn’t copy it down when I should have and now….poof, gone! Anyway, this article mentioned that landlords shouldn’t allow pets in rental properties, especially in a rental property with carpet.

That got me thinking about my own rental property and the rules I’ve set up for it. Let me tell you about pets in my rental property, then I’ll explain why I’m talking about this.

Why I allow pets in my rental property

As a military member, I move often. After 13 years on active duty, I've lived in five cities in the US, plus an overseas tour. I also have a large dog. And while his breed is not one that is known for hostility (don't get me started on labeling entire breeds as hostile…) he can seem scary to someone who isn't familiar with dogs. As a frequent renter, this can cause problems. Not everybody wants to allow pets in a rental property.

Like I said, he's a big dog.

My dog is a great pet to have in a rental. He’s actually incredibly friendly and easy to live with. He doesn't bark, he's never shown aggression, and about the only thing to worry about is that he will knock you over when playing. He did chew up one corner of a baseboard when he was 1 year old, but since then – nothing. It was only about ¼ inch of damage and cost only a few dollars to replace. And that was in a house I owned, so no worries for the landlord. He doesn’t pee inside because I make sure to always figure out a way to get a pet door.

And yet still, it can be difficult to find a landlord that will rent to me. The reason I live in my current apartment and not the one I wanted two blocks over is because they had a firm no pets policy. No bueno.

Landlords are worried about a lot of things when it comes to pets. Damage, smell, bothering the neighbors – I understand the concerns. But as a responsible tenant, it’s frustrating to hear that my dog isn’t allowed.

While the option is always there to buy a house in every new location, it isn’t always a good idea. Because military folks don’t have the option to move when and where we want, we might be moving into a seller’s market. Or we might be stuck selling a house for less than we paid. This happened to so many servicemembers after the housing market crash in 2006 that legislation was enacted to protect us.

Allowing Pets As A Landlord

As a landlord, I get to set the rules for my rental property. And I have chosen to be very accommodating to pet owners.

I have no restrictions on the size of animals, although I do have limited restrictions on types of animals. I currently allow dogs, cats, small mammals such as hamsters, small reptiles  and amphibians such as lizards and frogs, and fish tanks under 20 gallons. No birds and, I'm sorry Fiona, but no hippos. As part of the agreement, and before the tenants are allowed to move in, they must provide names and descriptions of each pet and their up to date shot records.

I even have a permanent doggie door installed into a wall to make life better for the tenants, the pets….and myself.

The tenants must agree to abide by certain rules for the conduct of their pet. While this helps me as a landlord to make sure my tenants are not a burden on neighbors, it also gives me peace of mind as an animal lover. These rules include not keeping the pet outside at night and always using a leash when outside the home or backyard.

Yes, allowing pets has led to slight problems. I have had to spend a few hundred dollars getting pet smells and stains out of carpets. This has been offset by the non-refundable pet fee I charge every new tenant. That is a non-negotiable, but it's the only financial aspect of my pet agreement.

Making a Pet Work in A Rental

There are some unexpected incentives for allowing pets. Tenants who have pets might be willing to pay a little more each month for a property that allows pets, because they know they can't get that everywhere. Some landlords will get this by simply having a slightly higher rent, while others will charge a separate pet rent. In the apartment I live in, I have to pay a separate rent every month. I don't do either of these things for my rental property.

Allowing pets also opens the door to more potential tenants. According to the American Pet Products Association, about 44% of American families have a dog and 35% have a cat. That’s a lot of people to turn away if you don’t allow pets.

And while the data is a little fuzzy, there are indications that pet owners also tend to earn a little more and be a little more reliable as tenants.

But none of that is why I allow pets. I allow pets because I want to treat others the way I want to be treated. I allow pets because I want to make life a little easier for pet owners. And I allow pets because I want domesticated animals to live in safe, comfortable homes. In the end, while banning pets from my rental property or charging extra for them would be a better financial decision, it wouldn’t align with my values at all.

Aligning Finances With Your Values

Not everything in life has to be the absolute best possible choice financially. After all, why are we earning all this money if not to be able to live a life according to our values?

Just like with my decision to allow pets in my rental property, I do a lot of other things that aren’t the best financial decision (at least not in the short term) but they were what I thought was right.

I’ve given thousands of dollars to family and friends when they needed help. All of them considered it a loan at the time, but if I never get a dime back, that’s okay with me. I considered the money to be a gift, because I wanted to help the people I love. Helping others is a big part of my value system.

Another common debate within the personal finance world is whether you should pay off student loans and mortgages early. The reason these two debts come up so often is that, at least currently, the interests rates are generally pretty low. Student loan rates are usually below 6% and mortgages, if opened within the last 8-10 years, are probably 5% or less.

Mathmatically, it often works out better to invest money rather than pay off low interest debts. In 2016, the S&P 500 total return was nearly 12% if you count dividends.

And if the market is going down? Well, you may not be earning more than the interest rate on your low interest debts, but you can buy equities “on sale.” That’s why I discussed the possibility of putting extra money into the market last week.

However, some people are just plain debt averse. I was extremely debt averse when I first started my career, and because of that I spent the first 3.5 years paying off all of my credit cards, student loans, and car loan. Heck, I still hate debt, which is why I go through spurts of throwing extra money towards the principal on my mortgage so I can pay it off faster.

I know full well that, mathematically speaking, putting the money into the stock market is usually the better choice. But I don’t want to be beholden to people. Debt bothers me. It feels irresponsible, even when I know rationally that it’s not. I fight the urge to use my taxable account to pay off my mortgage every day. Every day. And I can’t promise I won’t do it tomorrow. Debt doesn't align with my value system.

In the end, you have to live a financial life that aligns with your actual life. That means not always making the choice that makes the most financial sense. It means making the right choice for you.

We all have a situation where we chose to follow our values instead of the math. What's your story?