The 'Pet Clause' for Office Leases

The notion of bringing dogs to the office may seem like an outrageous concept to some people. But to pet owners who are deeply connected to their four-legged companions - or rely on them for emotional or physical support - having them at the office for the day is not a question, it's a given. For others who are less familiar with dogs, concerns about allergies or fear of aggression can make the concept downright frightening.

However, weighing the merits of having or not having dogs - or pets more generally - at the office is not the purpose of this article. Instead, let's assume that a landlord is accommodating pets at their office property - as a service animal sanctioned by the Americans with Disabilities Act or otherwise. What are some of the clauses that need to be included in the lease to protect the property owner's interests? And what concessions should tenants be prepared to make so their employees can bring Fido to the office?

Dogs in the Golden State

Chad Arnold, an executive vice president at Colliers in the East Bay Area of San Francisco, joked that in California, dogs have more rights than people. "If you go to a restaurant there are dogs ... and it's not just little dogs you carry in your purse," he said, adding that it's common to see people walking through a Nordstrom department store with a golden retriever. "It's a very dog-friendly environment in California."

As a broker specializing in office and industrial leasing, Arnold has included dog clauses in some leases, but they have typically related to service animals. He noted that there is not just one template for these clauses, and that the details of each vary from lease to lease and landlord to landlord.

"But I can tell you, a lot of people will bring their dogs to work without a dog clause in the lease. It's not typically nine to five, Monday through Friday, but they might bring them in on a Saturday or for some part of the day during the week," Arnold said.

Despite the prevalence of dogs in retail, restaurant and other settings in California, he noted that in office buildings they are not at all common. "I can tell you, I'm in office buildings all day, every day. I work in an office building; I list office buildings; I'm touring office buildings; and I rarely ever see a dog in an office building."

Tech Companies Lead the Way

Where dogs are indeed prevalent, according to Arnold, is at technology companies. "Because you're catering to younger individuals. Oftentimes [employers] want to keep them in the office as long as possible." At least that was the case before the pandemic, when the goal was to help employees feel relaxed at the office, to keep them there working and collaborating. "I don't think you'll see it as much in venture capital, banking, law firms [or] companies like that," Arnold added.

Single-Tenant Versus Multi-Tenant Buildings

"Now, if you're Facebook - or Meta as they are called today - they oftentimes own their buildings or occupy entire buildings. They could easily say ... we're in a triple-net lease, we have full control and say over what happens here," Arnold noted, adding that in a triple-net lease "you're taking care of cleaning and all the janitorial [management and costs]. It's kind of your building."

The effect is that the same set of rules apply in the tenant suites and common spaces because they are both governed by just one entity. The company then determines and enforces if animals of all types are welcome, what constitutes good behavior and under what circumstances the pet privilege will be revoked, among other policies.

But in a multi-tenant office building, even if a company decides it's okay to allow pets and they create a policy, it can't be implemented until the landlord agrees. These mixed environments are where the proverbial rubber meets the road for pet policies. Even if the landlord has clear policies about uses and behaviors in common areas - like lobbies, elevators and cafeterias - those spaces cannot be policed every minute of the day.

"If somebody gets on the elevator in a 15-story building, and there's a dog in there and they're allergic to dogs, property management is going to hear about it. God forbid someone gets bitten or even if a dog jumps on someone; some people are terrified," Arnold said.

Liability

This is a liability issue for the landlord, Arnold added. "If you allow a dog, where do you draw the line? Do you draw the line at small dogs? Do you draw the line at medium dogs? Do you put in a weight clause? People always push that limit."

Arnold said if you specify that dogs should not weigh more than 15 pounds, "before you know it, somebody's bringing a golden retriever. What if the dog damages the building? What if the dog bites another tenant's employee? Who's going to be ultimately responsible? It's going to come back on the landlord."

Lease Language for Landlords and Tenants

In South Carolina, one landlord is experimenting with dogs in a multi-tenant building. Bob Hughes, founder and CEO of Hughes Development Corporation, prides himself on establishing excellent working relationships with tenants. He noted that his mantra is "we only do business with our friends. And if they're not friends before we start, they become our friends."

In this vein, as a temporary courtesy to a long-time building tenant that wanted to allow dogs in their suite, Hughes agreed to test the notion of dogs in the office and created parameters that clarify the responsibilities of tenants that bring dogs to the office. They include the following:

• Well-behaved dogs are permitted on the premises.
• Tenant agrees to repay any damages caused by any dog brought to the property by the tenant, its clients, employees or contractors.
• Dogs can use the common areas of the building while on a leash and under the control of their owner.
• Landlord can immediately cancel this provision in case of a dog injuring a person or damaging property.
• If other problems with dogs arise such as noise, allergic reactions, fear of personal injury or the like, the tenant and landlord have 10 days to come to a reasonable solution. If one cannot be found, the landlord has the right to cancel this provision.

The clause has been in place for several months and during that time, there have been no significant incidences with dogs. However, if more tenants express interest in bringing their dogs, Hughes is considering inclusion of the following provisions:

• Limiting dogs to certain common areas such as the main lobby, a specific stairwell, a specific elevator and the tenant's hallway and suite.
• Designating a pet-relief area.
• Requiring evidence of vaccination and flea treatment.
• Allowing just non-dangerous dog breeds.
• The ability for the landlord to act if a dog injures a person by requiring removal, imposing fines and/or declaring an event of default that could result in eviction.
• Requiring the tenant to carry additional insurance in case of injury or damages.
• Indemnifying the landlord from all claims related to the actions of dogs in the office.
• Requiring tenants to comply with any laws that apply to their pets' presence on the property, including certificate of occupancy rules.

Service Animals Versus Support Animals

Contrary to popular belief, service animals - which are limited to dogs with some exceptions for miniature horses by the Americans with Disabilities Act - are governed by a series of parameters that their handlers must follow. They include complying with local animal control and public health requirements such as vaccinations and the responsibility to remove the dog from the premises if it's disruptive. They must also follow local ordinances in cleaning up after the animal. An exception exists for individuals with disabilities who physically cannot clean up after their service animal. While handlers of service animals cannot be charged extra cleaning fees to cover additional cleanings related to a dog, they are required to pay for damages to a property.

Emotional support, therapy, comfort or companion animals are not considered service animals under the ADA. However, some state and local governments have laws allowing people to take emotional support-type animals into public places, and they are, with some exceptions, subject to the local overarching rules of dog ownership that generally require vaccinations, control of the animal and accountability for damages to property or injury to individuals.

This article was updated on 12/12/2024