Answers - Real Estate

The collection of extra rent and extra security deposit is often an area of opposing thoughts between landlord and tenant. Therefore, let’s look at the problem from both perspectives, begi

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

nning with the tenant.

The Tenant
Many tenants think it is unfair to charge both extra security deposit and extra rent for the privilege of pet ownership and I will tell you why: If

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

omeone wants the pleasure of a pet (especially a dog or cat) an extra security deposit is nothing to pay for that pleasure. Most tenants understand that and know the extra security deposit

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

is taken in case the pet somehow damages the rental unit. If they do damage something, the landlord pays for the damages out of that money.

Now when a landlord charges extra rent for a p

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

t, are they charging it because the pet will be taking up more living space, use more hot water, or flush the toilet? No. They are charging extra rent because the pet could possibly cause

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

amage to the property.

Therefore, when a landlord charges extra security deposit for wear and tear or possible damage and extra rent for those same reasons, many people believe they are b

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

eing double-charged for the pleasure of owning a pet. And nobody likes to be double-charged.

The Landlord
On the other hand, from a landlord’s perspective, charging the extra rent fo

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

the privilege of pet ownership is smart business since the risk of damage is definitely higher, and the tenant should compensate for that risk. Let’s say you feel $25 a month is enough fo

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

compensation, so you add that to the rent. This additional $300 per year somewhat eases your mind should the pet cause damages to the premises.

Let’s say six months into the lease the te

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

nant moves out. Upon their departure you discover Fido had a weak bladder and consequently ruined all the living room carpet. The $150 you collected in extra rent ($25 per month times 6 mo

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ths) will not cover that replacement and because you didn’t receive any extra security money up front you lose.

The basic thought to keep in mind from a landlord’s perspective is a pet wh

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

has a bad day can do hundreds of dollars of damage to a property during that one day and collecting $25 or even $50 per month to cover that bad day just is not enough insurance—especially

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

if this damage happens early in the tenancy. For this reason, it makes perfect sense from a landlord’s perspective to charge both extra rent and extra security deposit for a pet.

Therefo

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

e, although tenants may believe you are double-charging them, in reality, the combination extra rent and extra security deposit is really an attempt to cover all scenarios—and rightfully s

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

. Ultimately, it is easier financially on the tenant because most tenants will not have the extra money for a much larger security deposit, such as a full month’s rent. Although this combi

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

nation leaves you with a little more risk in the beginning of their tenancy, this risk is reduced with each passing month.

The one advantage about collecting extra rent is if upon departu

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

e, the tenant’s pet really did very little damage, then you’ve made more money on that rental since the extra rent is yours to keep no matter what.

The Answer
There probably isn’t a

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ood universal answer to this question although there is one universal element. That element is this: if you allow pets, especially dogs and cats, in your rental, then you need to collect s

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ome form of compensation in case they cause any damage. This can be in the form of extra rent, extra security deposit, or both. Whatever you choose, provide yourself with as much coverage

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

s possible. (I cover the topic of pets in other articles available on my website at http://www.findthatqualitytenant.com)

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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