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Yeah, if you charge a pet deposit (or any excess deposit beyond what you would charge the person if they didn't have the dog) for a service dog, you are in violation of federal law and can be slapped with a huge penalty.
There are people who really should be allowed to have a service dog. We had a tenant for several years who was deaf and had a dog that did things like alert her when there was someone at the door, or a phone call coming in, or if one of the kids was crying. That was totally legit. But most service animals are bogus. The system is broken.
I'm guessing they don't have to pay the extra deposit for pets if it's a "service" dog.
Nope not if it's a real service dog. And in California you can take up to two months rent worth of security deposit by law. As long as it's applied to every applicant equally. And you can always do a strictly month to month lease agreement. If I was renting and the place said no pets I would simply either rent it without having a pet or move to a place that allows pets. I'm not gonna be my way in and force a pet on someone. And if I did find a place that allows pets and my dog damaged something I would be responsible to pay for the damages.
Can't do the service animal deposit because it would put me in violation of the law as I understand it.
There are a couple of legal firms that look for ADA type issues and any business owner is a prime target.
This is why I now specialize in commercial property... nothing with a bed and life is much better.
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