Gift certificate for tenant or rent discount?

Question

We recently had a shower remodel that was supposed to take 2 days but ended up taking 4 days of work over the course of a week because of larger issues that were uncovered during the reno. Tenant has been great, letting in the workers when needed, she went without a shower for 2 days, ongoing work for a week, hasn't complained. We were thinking it would be nice to offer something as a show of appreciation. I'm not sure I want to discount any rent because I don't want to set a precedent for rent withholding, but was thinking maybe a $100 gift certificate to a nice restaurant in town makes sense? Is this something that landlords do?  We're pretty new to being landlords (just over a year) but we love this tenant and want her to stay. Any thoughts are appreciated!

John Underwood · Answer

Looks like you are already giving her a new bathroom. Put a bow on it or have a ribbon cutting ceremony for her.

Nathan Gesner · Answer

It's not something you "must" do, but it's a nice gesture. When I have a project like that, I will give tenants a guest pass to my local rec center with showers, pool and spa, steam sauna, fitness center, etc. The facilities are nice and Tenants really appreciate the gesture. Each pass is $10 a day.

Kim Meredith Hampton · Answer

I think it’s a great gesture, it really does go a long way in creating the big “thank you” for them being so understanding given the circumstances. I do agree in not giving away the free rent, but something like a gift card for Amazon, Dinner, a donation to a charity that means a lot to them especially this time of year.

As a side note, we had a hedge fund we work with  that refuses to give anything for work they did “without a permit” and had set up several appointments for code enforcement with him no showing i’ve day and the hedge fund canceling  other. Needless to say, even though we had nothing to do with any of this, we are giving something to the tenant for being so patient and understanding for not anything they did 🙏

Billy Daniel · Answer

I'm not sure if it's something that most landlords do, but I would do it.  Especially if she is good tenant!  It's a good gesture to show you are acknowledging her inconvenience.

Theresa Harris · Answer

I would ask her what she's prefer.  For some the $100 cash is preferred.

Nate Sanow · Answer

I agree it is in this context a nice thing to do. The cost is worth it if you delay the future vacancy, which is the real killer of rental property profit. Don’t get too carried away, and don’t feel bad if you need to still be firm on things in the future like rent being paid on time, etc.  I think the right tenant will appreciate the gesture but not use it to manipulate you further down the road - if they do at all try to use it to get rent discounts or not pay rent on time then I would cut off the generosity immediately.

Linda S. · Answer

@Nikki Taylor,

Can you offer to take some $$ off her electric bill, that way it's tax deductible for you?     You could also ask what type of upgrade she'd like seen done to her home, that way she benefits and you benefit too!   Restaurants IMO are kind of personal,  everyone has different preferences, this way it keeps it straight and easy and frees up her money to get whatever else she wants.

We had a tenant last month where we had issues with the hot water heater and then the heat, and we took $175 off his electric bill.   It's a win-win.

Mary Smith · Answer

@Nikki Taylor I think this is a lovely gesture for your tenant and I think that she will really appreciate it! We usually do gift cards to a local grocery store and everyone has greatly appreciated it. I would definitely recommend the gift card over a rent discount.

Nikki Taylor · Answer

Ha :) yes the bathroom is going to be nicer than it was, but it has been a pretty annoying week for her anyways.

Thanks for all the great responses everyone. Love the idea of getting a day pass to a local rec center, I'll keep that in mind in case we need that again. I think we're going to go with the gift certificate idea... feels fitting during the holiday season and also appropriate given the amount of time she scheduled around being home to let workers in the house, etc.

Gift certificate for tenant or rent discount?

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