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The ESA Fight Goes to Court: What Property Managers Need to Know

The ESA Fight Goes to Court: What Property Managers Need to Know
By Abi Ortscheid Tuesday, August 26, 2025

A recent federal court ruling is shaking up long-standing assumptions about emotional support animals (ESAs) and landlord obligations. In Henderson v. Five Properties LLC, Judge Sarah Vance ruled against a tenant who claimed ESA status should exempt her from pet fees—a decision that directly challenges HUD’s guidance and its authority to impose fee waivers.

For property managers, this case is more than just a win against questionable ESA letters. It highlights three major takeaways:

  • Fee waivers aren’t automatic. ESA status alone doesn’t mean landlords must waive pet fees. Tenants must demonstrate financial need, and landlords may still require fees if reasonable.

  • HUD guidance isn’t binding. The court affirmed that HUD cannot create obligations beyond what the law states. Agencies enforce statutes; courts interpret them.

  • Accommodations are case-specific. Judges can weigh factors like affordability, rent levels, and installment options when determining reasonableness.

The broader impact comes from the Supreme Court’s recent rejection of Chevron deference in Loper Bright v. Raimondo. For decades, agencies like HUD could issue “guidance” that effectively carried the weight of law. That era is ending. Courts now hold sole authority to interpret statutes, meaning HUD’s guidance documents are advisory at best.

What This Means for Property Managers

  • Charging pet fees for ESAs is no longer automatically a violation, but proceed carefully.

  • Policies should be applied consistently and transparently to reduce legal risk.

  • Consult with legal counsel before updating your ESA and pet policies—especially in low-income or subsidized housing contexts where case-by-case review may apply.

While this ruling is binding only within the 5th Circuit (Louisiana, Texas, Mississippi), its reasoning may influence courts across the country.

For a deeper dive into the Henderson case, Chevron’s demise, and what this shift means for landlords and property managers, read Todd Ortscheid’s full analysis on our Substack: pmassist.substack.com.

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Abi Ortscheid
Partner
With experience spanning over a decade in the property management industry, Abi stands out not just as an industry expert but also as a trailblazing woman entrepreneur. Her dedication transcends traditional business roles, as she's fervently committed to elevating her peers in the property management realm. Abi's vision isn't limited to streamlining the property management process; it's about fostering an environment where every stakeholder, from property owners to tenants, has an enhanced exper...
With experience spanning over a decade in the property management industry, Abi stands out not just as an industry expert but also as a trailblazing woman entrepreneur. Her dedication transcends traditional business roles, as she's fervently committed to elevating her peers in the property management realm. Abi's vision isn't limited to streamlining the property management process; it's about fostering an environment where every stakeholder, from property owners to tenants, has an enhanced experience. Furthermore, Abi's advocacy goes beyond professional guidance. She consistently champions the cause of female professionals, ensuring their voices are heard, their roles are acknowledged, and their potential is realized. In every endeavor, Abi's passion for improvement and inclusivity shines through, making her an invaluable asset and leader in the property management community.
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