BiggerPockets

Do any of you give Christmas gifts to tenants?

If they are "good" tenants, I'll hand deliver a gift card from the local grocery chain. They can use it for gasoline or groceries. Depending on the tenant, the denomination is between $25-$50.

For me, this accomplishes a couple of things.

1. General goodwill. Who would want to screw a nice guy like me?
2. I get to see the house/unit unannounced.
3. I get 20 cents off of 30 gallons of gas for every $50 spent on these cards!
4. In the overall scheme of things, I think it's a small price to pay.

Now for a tiny operation like mine, this type of deal is feasible. I put these gifts into Christmas cards and go door knocking. They are always well received. A few of the old timer residents will hand me some cookies or a re-gifted bottle of booze as well.

I think there's still something to be said for interpersonal relationships, especially around the holidays. That said, all lease rules are always enforced!

Do you guys do anything like this for your tenants?

Why, or why not?

I never thought of doing that when I was landlording. I probably wouldn't have done it anyway.

Two things I used to always do was show them a sample of which size nail or staple (preferred) they were allowed to use if they hung Christmas lights on the exterior. And that any larger size would result in an AUTOMATIC DEDUCTION from their security deposit of $10.00 per hole. I also pointed out that one nail/staple every 3-4 feet was sufficient, not every one foot.

Another thing I would do was give them a second letter reminding them that THEY were responsible for SECURING THE WATER SYSTEM AGAINST FREEZING, during cold weather. This was in TX where the houses are not built for freezing weather, many people return to their homes in the north, or south over the holidays, and freezes are not uncommon.

I always considered it a business relationship. I also didn't give presents to the checkout lady at the grocery, the mailman or the guy who throws my paper on my driveway.

Now, my customers always got a nice HOMEMADE reminder from me.

Frank

This is a very interesting thread. Thanks to all for providing thoughts.

We have considered sending Christmas Cards for the last few years, but have not yet done so (and do not have it in the budget for this year).

We are up to 30 units now, so even a $20 gift card plus travel and time OR shipping is $650 plus.

Cards alone with stamps is not anywhere near as expensive, maybe $50 - but the time investment should be considered.

We have been pondering the benefits of such actions, other than making us feel good.

In line with the thinking of some others who have already posted - we spent almost $100k this year in upgrades to our properties: roofs, steps, porches, total rehabs, outside painting, new entry doors, new heating systems (9 units), new trash cans. Now, granted, some of these things were to make our managment easier, but in every case the tenants benefited in some way.

We give NO gifts to any tenants, with the exception of one tenant and her sister in one of our Chicago properties. And. the only reason for that tenant is to show our gratitude for their incredible patience from day one as we troubleshooted their unit, which had gremlins all over the place.

On the hand, we reward our team and contractors with gifts and a year-end dinner. We probably spend more than we should, but they are the ones that helped us build our company and they continue to foster it's growth. No thank you for them, is to much.

Christmas cards to all tenants going out the week after Thanksgiving. Every year, the same thing.

I learned long ago not to expect any gratitude from tenants.

I do repairs the same day that I'm called, and I try to do one upgrade to each property once a year. But no Christmas presents.

No Cristmas cards, either. Not for anybody since my family belongs to a different religion.

Every now and again, I'll have a tenant who sends me a Christmas card. Most of them don't.

I don't like to receive gifts from anyone but close friends and family, because I feel obligated to give a gift in return. But tenants aren't burdoned with the need for that social nicety.

Still, I don't want to participate in the holiday gift-giving mania. Crikey, you could spend half your year's income buying a gift for every one who crosses your path during the year.

Originally posted by MikeOH

NO GOOD DEED GOES UNPUNISHED in the rental business!!!

I did a good deed this week. Now I'm faced with a tenant who things she's owed a premium unit after trashing a lesser unit. 6' red stain on the living room carpet and she tries to tell me "Well, I don't know how old those carpets are." :roll: BTW - this stain is a lighter pink because she borrowed my $200 carpet steamer I lent to her as a good deed. It's now destroyed and I had to buy a new one. Yet another good deed..... Thus the look on my face in my new avatar.

Christmas is a time for family. Spend your money on your family and get your mind in your family and out of your tenants. It's ok to spend some money on the people who really make you money. Tenants don't make you money - not even at great returns. Tenants sustain the property and the landlording business and bring you liabilities - not money. You make your money, your bird dogs who bring you good deals make you money, your realtors who bring you good deals make you money, your end buyers make you money, your accountant who prepares your taxes properly makes you money by nature of saving it, etc.... you get the point. You see who really makes you money in this business. Tenants do not make money. They are rent paying/business sustaining units of liability that must be managed.

I HAD to give Tim a +1 vote on his post for what he said and also for his avatar pic.
My wife and I are gearing up to simultaneously build capital and start buying rental property and the thought of minor "good deeds" for tenants during the holidays had crossed my mind. Posts like Tim's put an interesting perspective on the topic from a seasoned investor. I appreciate all the input on this topic!

Originally posted by Brad Mccarter

In My local, and higher end rental, I do much more to maintain a friendly relationship.

This may be true. I don't deal in "high end" per se so I don't know. I simply haven't found high end neighborhoods with sustainable rent for the purchase price unless you put a ton of cash down which is not really increasing the rate of return so much as buying into the opportunity to landlord in higher end neighborhoods. Perhaps higher end rental people have value beyond their position as tenant that justifies networking with them. I can imagine if one were an attorney, accountant or some other professional it would be a good idea to network with them and I could see a justification for gift giving there.

Great topic. I still have yet to purchase my first property, but I have often wondered about this topic for when I do have tenants. I think I will play it on a case by case basis. It will take time to learn which tenants deserve a little something extra, and which do not. Just my thoughts.

Claude