Getting a pet for Christmas makes up many viral social media posts. Photos and videos of delighted children (or adults) romping with a dog or cuddling a kitten can elicit the “Awww…” response like nothing else.

Heart-tugging holiday moments aside, ask yourself this question: “What will this furry new family member do to our biggest investment?”

Bringing home a pet can mean a potentially huge impact on that home — and not just in regards to a few puddles until the puppy is house-trained. The presence of a pet can impact your property expenses in the short term, as well as any long-term plans for selling the house.

Due diligence is essential. Keep these five things in mind before you bring a pet into your household.

1. Will this affect my insurance premium?

It depends on the kind of pet. A recent nationwide analysis found that homeowners insurance rates went up 1% if a policyholder had a breed of dog that’s considered “aggressive,” including:  

• Pit bulls
• German shepherds
• Akitas
• Staffordshire terriers
• Chow chows
• Alaskan malamutes
• Doberman pinschers
• Great Danes
• Siberian huskies
• Rottweilers
• Presa Canarios
• Wolf hybrids

There’s a lot at stake:The Insurance Information Institute reports that dog bites and other dog-related injury claims amounted to $854 million in 2020. That’s why insurers charge more for aggressive breeds or request liability waivers from their owners. Some companies may drop clients altogether if they get one of these breeds. 

Note: At least four states (Michigan, Nevada, New York and Pennsylvania) prohibit insurance companies from denying homeowners insurance based on dog breeds or excluding a dog from liability coverage. Talk with your insurance agent about which breeds might affect your coverage. 

2. Do I have to clear it with the HOA?

Not every homeowners association (HOA) has rules about pet ownership. Many, however, are as picky about pets as they are about fence heights and exterior paint colors. According to the industry website HOA Management, the most common restrictions are: 

• Select dog breeds only  
• A limit on number of pets per household
• Weight limits on dogs
• Spaying or neutering required

Homeowners associations may also charge an annual pet fee. Typically that’s about $300 per year, according tothe National Association of Realtors (NAR).

An HOA might also have rules about noise. If your dog barks while you’re away from home, the HOA board might levy fines against you or even require you to give up the animal.

Incidentally, some HOAs have strict rules even for indoor animals. Read your community’s covenants before you welcome a pet. 

3. I’m an apartment dweller — will my rent go up? 

Pets may be prohibited in your building, so talk to the landlord first. Even if they’re allowed, the landlord might set limits on the breed, size or even age of any pets. 

It’s possible the landlord will raise the rent due your new “roommate.” However, that rent increase can’t happen until your current lease is up. If you’re on a month-to-month lease, the landlord can raise the rent after proper legal notice is given (usually 30 days). 

Some building owners charge “pet rent,” which is typically $400 per year. Your landlord might also require a deposit as part of the deal; this could be refundable if your pet doesn’t damage the unit.

4. How might a pet affect property values? 

A pet can affect your home both indoors and out. Wood or laminate flooring gets scratched by dog’s  nails. Pet urine that soaks into the carpet padding creates lingering odor. Cats and dogs may scratch and/or chew on doors and drywall.

Outdoors, dogs might dig holes, leave yellowing circles on the lawn, damage landscape plantings and even chew on fences and exterior trim. 

Fixing these things costs money. Fail to keep up with household pet issues and the fixes become increasingly expensive — reseeding or resodding a section of lawn, say, or having to replace laminate flooring because the dog’s nails were not trimmed on a regular grooming schedule. 

5. What if I decide to sell the house?

The property values mentioned above come into play if you decide to sell. Outdoors, a splintery fence or holes in the side yard can affect your home’s first impression. Inside, things you’ve stopped noticing might also turn off a potential buyer: squeaky toys scattered around, pet odors, snowdrifts of fur.

Showing the home means not just fixing problems, but also daily vigilance to keep them from returning: scooping the yard and the litterbox, storing toys, putting the dog crate in the garage, dusting furniture and sweeping or vacuuming up pet hair.

The presence of a dog or cat (or both) can make a real estate agent’s job difficult. Dogs may bark at or otherwise intimidate people who want to see the house. Your cat might choose to deposit a fresh hairball in the middle of the carpet moments before the agent brings someone through.

No wonder 8 in 10 realtors suggest removing pets from the home during showings. If you’re lucky, a relative or friend will pet sit Fluffy or Fido; if not, that means paying for boarding, an additional expense when you’re also looking at the cost of moving.

The takeaway 

Pets can add immeasurable joy to our lives. But their presence also affects our lifestyle financially. Before you decide to welcome a pet into your household, learn all you can about the potential impact on your home and your budget.