Court Ruling Clarifies ESA Fees: A Win for Landlords | Avenue Real Estate Group

Court Ruling Clarifies Emotional Support Animal Fees: A Win for Landlords

Updated August 22, 2025 • Avenue Real Estate Group

For years, landlords and property managers have wrestled with how to handle Emotional Support Animal (ESA) requests. The Fair Housing Act (FHA) requires reasonable accommodations for tenants with disabilities—but many took that to mean ESA fees and deposits must always be waived.

A recent federal case, Henderson v. Five Properties LLC, clarifies the standard: landlords are not automatically required to waive ESA fees. Instead, a tenant must show that the waiver is both necessary and reasonable as an FHA accommodation.

The core of the ruling

  • No blanket waivers: An ESA letter alone doesn’t entitle a tenant to automatic fee or deposit waivers.
  • Case-by-case analysis: Requests must be evaluated on their facts—tenant need, fee size, and operational impact.
  • Guidance ≠ law: Prior HUD guidance documents are informative but not binding legal authority.

Bottom line: You can maintain standard pet fees. If a tenant requests a waiver, evaluate it individually and grant it only if the waiver is necessary for equal use and enjoyment of the dwelling.

Why this matters for landlords

  1. Protects revenue: Prevents automatic loss of deposits/fees where no disability-related necessity is shown.
  2. Balances rights: Respects legitimate disability accommodations without treating every ESA letter as a free pass.
  3. Reduces abuse: Curtails reliance on low-quality online letters by restoring a necessity/reasonableness test.

What to do next (practical steps)

1) Keep a clear written policy

Publish your pet/ESA policy, apply it consistently, and define your review process for accommodation requests.

2) Respond promptly & request specifics

Acknowledge each request and ask for documentation that explains why a fee waiver is necessary for the resident’s disability-related needs.

3) Evaluate individually

Consider the fee amount, tenant’s circumstances, and whether a waiver would be an undue burden. Alternatives (e.g., reduced fee) may be reasonable depending on facts.

4) Document decisions

Maintain a written record of the request, what you reviewed, and the reasoning for approval or denial.

5) Train your team

Ensure leasing and management staff know the process, timelines, and communication templates.

What this does not do

  • Does not eliminate FHA accommodations.
  • Does not authorize blanket denials of ESAs.
  • Does not permit discrimination against tenants with legitimate disabilities.

Further reading

Avenue Real Estate Group • Property Management, Leasing & Sales