Year end letter or gifts to tenants

General Landlording & Rental Properties
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Year end letter or gifts to tenants

Ryan Bird
Member since 2019 · 107 posts · 15 votes

Just curious if anyone here writes holiday greetings and or provide gift cards to tenant during year end/ new year. Debating if I should give a gift card to the tenants who have been super nice.

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Linda S.
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
3y

@Ryan Bird,

100% no, do NOT give gift cards IMO.  You are NOT a friend/buddy, you are their landlord, and trust me-- make no mistake about it, they don't like you as a person, they like you for charging them X rent only.   People think tenants like their landlord, no they don't-- remember you are the greedy MOFO taking 1/3 of their hard earned income each month, that's how they see you.   Imagine if your mortgage company sent you a $25 gift card, I personally wouldn't care-- I'd just think "thanks, you're obviously overcharging me if you need to redistribute $$ to customers."

If you want to "Thank" them-- ask them how you can upgrade their house?! Put a new security light in, or powerwash it to make it look better-- do something that will show them you appreciate them by reinvesting and LISTENING to what they want in their house.   I do this with all of my tenants, at the annual inspection, I ask "how can I upgrade your house and make it even better for YOU?" --- a lot of times it's something small and overlooked, like maybe add stepping stones so their feet don't get muddy when it rains.   The key is listening to what your tenants want.    This is 100% tax deductible, upgrades your house long-term, and improves the relationship.

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  • Charles Carillo
    Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Ryan Bird

    I personally feel that holiday cards blur the lines in the landlord/tenant relationship. Also, most tenants talk so if one tenant gets a gift card and another does not; it might do more harm than good.

    2Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    No a simple card or a pie is more than enough. Hard no on gift cards. 

    [email protected]
    The Elle Group5153 Reviews
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    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    3y

    I don't. I try to keep the relationship professional and just provide a great place for them to live. 

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Ryan Bird

    lots of varying opinions on this on BP.  for long tenured residents, i will occasionally do a gift card.

    i actually think a holiday card is the worst option, it blurs the line without offering anything of value to the resident.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    It's a personal choice. I feel it blurs the line and should not be done. My father-in-law did it with his rentals, thinking his tenants would appreciate the gesture and return the favor by being good tenants. When he passed, I learned that all of his "good renters" were terrible. I ended up terminating or evicting all of them.

    I'm sure it can be done successfully but you need to be careful.

    The DIY Landlord Book4.7248 Reviews
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    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    No, it's pure business.

    I don't think spending time and money on this will increase my cash flow at all.

    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    3y

    @Ryan Bird,

    100% no, do NOT give gift cards IMO.  You are NOT a friend/buddy, you are their landlord, and trust me-- make no mistake about it, they don't like you as a person, they like you for charging them X rent only.   People think tenants like their landlord, no they don't-- remember you are the greedy MOFO taking 1/3 of their hard earned income each month, that's how they see you.   Imagine if your mortgage company sent you a $25 gift card, I personally wouldn't care-- I'd just think "thanks, you're obviously overcharging me if you need to redistribute $$ to customers."

    If you want to "Thank" them-- ask them how you can upgrade their house?! Put a new security light in, or powerwash it to make it look better-- do something that will show them you appreciate them by reinvesting and LISTENING to what they want in their house.   I do this with all of my tenants, at the annual inspection, I ask "how can I upgrade your house and make it even better for YOU?" --- a lot of times it's something small and overlooked, like maybe add stepping stones so their feet don't get muddy when it rains.   The key is listening to what your tenants want.    This is 100% tax deductible, upgrades your house long-term, and improves the relationship.

    5Reply
  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    3y

    This year we gave out tape measures with our logo on them to most of our property owners, vendors, and our top tenants. It was the first time in 25 years of business that we gave out anything, and they were well received.

    475-900-3100
    Bassett Property Management5108 Reviews
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    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Ryan Bird No.

    0Reply
  • Sam YinPro Member
    Los Angeles, CA · Member since 2021 · 583 posts · 738 votes
    3y

    @Ryan Bird

    I think this topic has been hashed out many times. The overwhelming majority of landlords/property managers would say NO. Just keep it professional.

    I did it once on 2020. I was excited because I had purchased 2 triplexes ar once and finally grew my portfolio to 11 units. I sent everyone a 1lb Sees Candy gift card. I quickly learned it was a mistake. Tenants dont care. Some had the balls to ask for more. The tenants never got any better.

    I do not do it anymore. I keep it strictly professional. I'm approaching 100 units. I have a hard enough time managing rehabs, timing rent increases, and making capital improvements. There is no need to blur the lines any further.

    I spent this morning snaking out a few sewer lines, clearing tubs and toilets. Yesterday I was trenching about 70' to run electrical to a gate opener. It's a dirty job. Tenants and property managers just sat there and watched. It was a clear reminder that this is a business and there is no need to send mix messages. You provide a good product. They pay for it monthly. End of story.

    1Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    You give gifts because you appreciate the relationship and want to show thanks.
    Not because you expect something in return(a thank you from the tenant, a better tenant, etc.)

    If you have a long-term tenant and/or a tenant who is never late with their payments and you are a gift-giving person, why not give a small $25 gift. 

    [email protected]917-280-8544
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    0Reply
  • Galen Ikonomov
    Member since 2021 · 256 posts · 213 votes
    3y

    I have a gift for my tenants. Brand new windows that are going to cut their utilities by probably 50%.

    0Reply
  • David Epstein
    Brussels, Belgium · Member since 2014 · 52 posts · 22 votes
    3y

    Friends,

    What a great thread / discussion to begin - thanks!


    I don’t send anything out annually - however I just sent a small gift card as a gesture for a tenant who has been with me five years in the same property.  

    I agree it can blur a line, especially if you are in-person managing (I am long distance via property managers, so just a guess).


    Providing a great place, responding to concerns, making repairs, etc is a win-win for your property and your tenants.

    0Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    3y
    Quote from @Linda S.:

    @Ryan Bird,

    100% no, do NOT give gift cards IMO.  You are NOT a friend/buddy, you are their landlord, and trust me-- make no mistake about it, they don't like you as a person, they like you for charging them X rent only.   People think tenants like their landlord, no they don't-- remember you are the greedy MOFO taking 1/3 of their hard earned income each month, that's how they see you.   Imagine if your mortgage company sent you a $25 gift card, I personally wouldn't care-- I'd just think "thanks, you're obviously overcharging me if you need to redistribute $$ to customers."

    If you want to "Thank" them-- ask them how you can upgrade their house?! Put a new security light in, or powerwash it to make it look better-- do something that will show them you appreciate them by reinvesting and LISTENING to what they want in their house.   I do this with all of my tenants, at the annual inspection, I ask "how can I upgrade your house and make it even better for YOU?" --- a lot of times it's something small and overlooked, like maybe add stepping stones so their feet don't get muddy when it rains.   The key is listening to what your tenants want.    This is 100% tax deductible, upgrades your house long-term, and improves the relationship.


     Great idea right here

    Whatever money would have been used towards a giftcard could just be rolled over into property improvements

    1Reply
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